Value Creation Model – How to Build One for Your Business

In business, you are the boss of your own. Isn’t it sounds really good? Yes it does sounds well but on the other hand, it’s too tough and complicated to keep your business on a track. When you start your business, you have to take care of every single thing involved in your business and that directly and indirectly affect your business too.

The topic I am going to introduce with the readers is “Value Creation Model”. I will be discussing its importance, its characteristics and its use for businesses in the future years.

You undertake and start your business with value creation.  You can consider it as the main aim of your business to build and actualize and to hand over the value in a way that your investment or your expenditure turns into a very valuable profit.

Let’s Check, How Value Is Created?

By defining it in a broader way, it is created or generated when some work is performed or done. This work could be of any sort either physical working like cutting of wood pieces or creative working like creating attractive and creative logos; banners etc. but while you work, keep one thing in your mind that not all work is a value generating work. Every wok cannot create a handsome amount of value for you. Some will create less, some will create more, some w3ill create none, depends totally upon your work.

What if I define value to create more precisely then it is a process that is irreversible and the transactions made in value creating are thermodynamically irreversible.

Some Characteristics Of Value Creation

  • The values creating economic change over transactions are irreversible.
  • The values’ creating economic change over transactions reduces and increases in both ways. It reduces when it comes to local aspect and it increases when it comes to a global aspect.
  • The value-creating economic change over transactions generates an outgrowth or a brand.

Point To Be Taken In Consideration While Creating A Value

A point that every business person must consider while creating value is that ‘Not all value that you create will be equal’.

We have a bundle of ways to generate a vale for us. But we don’t know that with which way we should proceed. Because each type of value is even more useful than the other one but again back to the point of consideration, it is useful but not at all equal.

What Value Creation Sounds In Future Years

Looking at the past 100 years, our most work and businesses were based on mechanical productions. But looking at the world today and the future of value-creating in future years, work and businesses are based more on creativity as compared to the productivity of the past.

Now we need to understand the terminologies by which we can create economic creativity in our work.

It is because the future of value created is based upon economic creativity and efforts to manage it.


So from the above-given explanation, it is cleared that the future of business in terms of value creation wholly solely depends upon economic creativity, not on economic productivity.

Charlie Wilson

I am Charlie Wilson, an enthusiast who loves to travel and explore the world. Not only travelling is what I love in fact, I write travel blogs too, in order to entertain people and show them how important travelling is. I am a passionate writer and by profession

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