Method for Value Generation

Question 1

Value

Answer 1

Value: amount of a commodity, medium of exchange etc. considered to be an equivalent for something else.

Value exchange: The benefits that both parties (provider and recipient) get from giving and receiving or using something

Question 2

Value Research

Answer 2

Companies are never fully aware of the range of value outcomes of their business

There is no structured approach to think about value

There were no useful processes or tools for designing effective business models

The solution precis:
Understand failed value exchanges
Evaluate multiple stakeholders in business networks
Reveal new value opportunities
Concentrate them into Realistic Proto plans

Question 3

sTRUCTURED Approach

Answer 3

Value captured

Value uncaptured

Value opportunity

Question 4

Uncovering Value Failure

Answer 4

Uses the concept of failed value exchanges to uncover new value opportunities
Value missed I give but don’t get a fair return
Value destroyed I give but you don’t want
Value surplus I give or have too much
Value absence You want but I don’t give

Question 5

Wide Stakeholder Group

Answer 5

Uses the concept of multiple stakeholders to uncover new value opportunities

investors
environment, society
emplyees
suppliers
customers

Question 6

Multiple forms of value

Answer 6

Examining multiple forms of value including the triple bottom line to uncover new value opportunities.
People planet profit

Question 7

Business Part of a System

Answer 7

Long-term and systems view of the business

What can be done over a period that exceeds quarterly or annual performance periods?

What are the implications for how the business or product operates within the wider systems: value chain, society, planetary

Question 8

Sustainable Value

Answer 8

Sustainable economic value
Growth, profit, return on investment
Financial resilience
Long-term viability and stability

Sustainable environmental value
Use of renewable resources
Low emissions and low waste levels within the ability of the environment to metabolise safely
Pollution prevention (air, water, land)
Protection of bio-diversity
Positive benefits

Sustainable social value
Well-being, Health, Community development
Secure and meaningful livelihoods
Fair labour standards and practices
Poverty alleviation
Social justice, Equality, Diversity

Question 9

Value Explorer Tool

Answer 9

Declare the unit of analysis: scope and boundary
Stakeholders: place in the correct position around the outside
Purpose: the primary reason for the existence of your business, why should the stakeholders care?
Map current value captured of each stakeholder
Map value missed and destroyed
Map value surplus and absence
Identify value opportunities
Extend value captured
Eliminate value destroyed and absence
Utilise value missed and surplus
Look for generating solutions to enhance sustainability