Dynamic, matrix-based, adaptive, and market-driven businesses are complex. Executives are exhorted to coordinate intra- / inter-firm value activities for multiple stakeholders while simultaneously maintaining profitability. To do so, executives need a “new way of thinking” about integrated value management and a more relevant set of management principles based on systems theory / practice. 21st century business problems are difficult. They are made even more complex by incomplete, contradictory, and changing requirements. Systems researchers call these “wicked problems” with inherent “messiness”. Optimizing value within firms / across value chains is one such problem. Don’t let your company become a place “where value goes to die.” Avoid this “wicked problem!” Use the Integrated Value Process (IVP) framework to ensure value flows across your value chain.
Brain science provides a useful metaphor for business. Consider “collective intelligence” – what does a company “know”? To answer that question, one needs to study the system / network (e.g. the company), the interactions between groups in the company (e.g. its functions or departments), and the discrete activities of each of its members (e.g. the individual employees). A complex web of cognitive inter-relations / inter-dependencies exists in the brain, the firm, and the value chain. Systems-thinking and complexity theory provide useful tools to analyze both. The Integrated Value Process (IVP) framework is a complex, dynamic, interactive model for managing business value holistically across the value chain. Read More
Confusion / hype characterize most discussions of Blockchain (BC) technology. BC’s use of ‘chain’ is misleading: BCs are NOT value chains. Marketing spin prevents finding BC’s true value. Use Integrated Value Process (IVP) framework to distinguish reality from fiction.
Like a map for a large complex journey, working in the 21st century economy requires both a comprehensive understanding of multiple areas / subjects and a deep understanding of a few specialty topics. Now more than ever, executives need a cross-functional / multidisciplinary ‘meta’ definition of value and a holistic process to translate / coordinate / align alternative definitions of value across organizational boundaries. They need the Integrated Value Process (IVP) to optimize value flows to achieve / maintain competitive advantage. Read More
In order to understand value, one needs a robust theory of value (conceptual intelligence), a way of properly specifying value (encoded intelligence), an effective way to communicate value (emotional intelligence), and a way to decide which actions / activities to undertake (experiential intelligence). One needs to integrate or synthesize all four areas to be effective – for value to flow. Moreover, individuals across the organization need to do so simultaneously in order for value to flow across the organization and / or value stream. Read More
Value is key to strategy. Value is the foundation of the value chain, i.e. the interconnected value activities within the firm. Value activities are the physically and technologically distinct activities the firm performs. They are the building blocks by which the firm creates a product / service valuable to its buyers, i.e. the firm’s value proposition. Read More
To manage value across its value chain, a company’s executives need to understand where “value gaps”might exist. While executives use “value management” principles and aim for their companies to be “value-based” / “value-driven” in terms of their respective strategies, there is surprisingly little consensus on the definition of value in academe / practice. The ensuing alternative definitions of value lead to mistranslation / misinterpretation / misalignment that impede value creation and “value flows.” Read More
The New York Times ran an article on the difficulty of describing the strange ideas emerging from physics. In “Tongue-tied by Physics: The Ineffable Lightness of Being” (12 October 2003), George Johnson recounts an exchange between two eminent physicists in the 1920s as they hiked the mountains above Göttingen: ”How can we ever hope to understand atoms?”… Read More
Value. Value-add. Value-driven. Value creation. Value chains. Value propositions. I hear speakers frequently use these terms at seminars / workshops and in the popular business press. Whose value? What is value? Says who? Where’s the proof? Read More
To be perceived as strategic, Knowledge Management (KM) professionals need to understand the concept of value. Perhaps it comes as no surprise to KM practitioners that there is surprisingly little consensus on the definition of value in academe / practice. The ensuing alternative definitions of value lead to mistranslation / misinterpretation / misalignment. Read More