Just What is Value?

Promoting Entrepreneurial Revolution

A business creates value for customer.  Just what is value?

Value is not just adding a mark up on the product;  it is not a trader's game of buying low, selling high. There is value when needs of customer is met:   meal is served and hunger is satisfied;  refreshing drink is drunk and thirst is sated;   house for shelter is built, the customer is brought to a desired destination, etc., the disease is cured, the pain is removed.  That is value from the point of view of the customer;  and value from the point of view of  the seller, service provider is the exchange value:  the compensation.  Value is not created when service or product is defective or of low quality and unsatisfactory to the customer or the user.

Thus every business must have a value proposition or a main value proposition (MVP) which it delivers to the customer, and communicates to the customer through various means/media

Value has three step process:

l.  Creation -  ideation, creation,  conceptualization

2.  Delivery:   production, delivery, manufacturing, logistics, distribution channel, marketing

3.  Capture:    sales, POS, collectin

Thus more innovation (new ideas) create more values,   more values means more wealth creation.

Thus the NU12 is intended to create more wealth.  Entrepreneurs create more wealth because of their new ideas.  New ideas create new products that sell, and thus bring more revenues and wealth to the entrepreneurs.

New ideas/values are in the area of:   new demand, new satisfaction, new process, new materials, new customers (PTM)  new linkages, new customer bonds (refer to the business model canvass by Alex Osterwalder) and new Price.  (terms, DP, interest, modes of ownership:   lease, lease to own, time sharing, fractional ownership (as with corporate jets)