Value Creation can also be understood as the process towards creating a Unique Selling Proposition. Let’s take the trading model of Nusantara Collection as an example…
A basic trading model would require core competencies — a well-designed site with visuals & copy that carry the brand identity, a stable backend, secure payment systems, communication tools, supply chains, logistics, etc etc etc, and the ability to take it to market. And core competencies would require a financial model that fairly compensates the key assets that make the model work — like the artist, for instance, is compensated for their craft and their products still arrive to market at competitive price points (ie. the value they bring is compelling to the market segment they are targeting).
Pause. There’s a lot to unpack here. Observe this: Value Creation comes from Collaboration, and it is not unlike a Community of core competencies.
Note: Value creation is an intrinsic expression of who we are. It’s not determined by external factors like the “market”. If we are not recognized or seen within the company, we withhold our value inputs.
Note: Put yourself in the situation where your contributions are not recognized or valued. Will that impact on your work or even your life outside work?
This is where Teamwork and Community are essential. When we can draw from a pool of diversely talented individuals pulling in the same direction… we have the makings of a Team. If the Team interacts well together, we create Value. If not, we get stuck in a circular drama going nowhere.
When we finally achieve Value Creation, a USP slowly emerges. And then you bring that to Market. A beautiful work of art cannot reveal itself inside a dark tunnel.
An analogy. Value creation is about building the garden. Marketing is about communicating the garden so the birds and the butterflies visit.
More on Teamwork…
How the Team interacts has a deep impact on Value Creation. If a key member is not responsible for their part, value creation is affected. It’s about energy. The wrong Team member can suck the energy out of any enterprise.
A side note from an observation from my favorite game of Bridge: Partnerships are also not only about depth of expertise. I’ve seen Bridge partnerships between 2 experts lose to partnerships between 2 lesser-skilled partners that communicate well.
At the heart of Value Creation is the Team. And if the Team can be nurtured within a Community where team members are seen & heard, appreciated & fairly compensated — a safe space for the communication & exchange of ideas — we can aspire towards a level of Teamwork where the whole is greater than the sum of its parts.
Ultimately, it takes a Team, working in Community, to build Value Creation… and create your Unique Selling Proposition. For without a compelling USP — one that sets you apart in the crowded marketplace — you cannot effectively take your creation to market.
Unfortunately, many companies forget this part and so they hire public relations and advertising companies to create an illusion of value instead of developing intrinsic value.