A new ecosystem for value creation
A company's value creation is usually associated only with financial productivity and profit generation, but realizing the potential of a business is much more than that. The value creation ecosystem is also based on action for social well-being. A company should consider issues affecting a wider range of people than just shareholders and stakeholders, and be committed to taking part in numerous social challenges. A value creation ecosystem is also about a company maintaining high resilience to disruption. A company's investment in its growth is very often appreciated by capital markets which often reward such ventures. This type of value-creation ecosystem is relatively new, so here are ways to make it easier to introduce it to your company.
The COVID-19 pandemic has resulted in dynamic changes in priority setting. We are now dealing with very rapidly changing perceptions of value and numerous disruptions that are very difficult to predict. As a result, companies must be constantly on guard and prepared to act quickly in allocating their resources in the right way. This is not an easy task because the list of potential priorities that can become increasingly more or less important overnight has expanded considerably. One of the biggest challenges of today's businesses is deciding which top priorities are worth focusing on the most. As a result, a company's ability to anticipate future trends can make the difference in its future operations. Quickly capturing the most relevant factors that generate value in the value-creation ecosystem and immediately applying the acquired information by the company is extremely important.
Visionary valuation strategy
Introducing a new ecosystem of value creation will be much easier if a company uses a technique called "visionary valuation." This technique involves specifying as precisely as possible the forms of value a company seeks to create, taking into account even the smallest details. A deeper understanding of the meaning of a particular value and how a commitment to just that value can potentially affect the company's future growth is essential to realize the full potential it has. Once you have concretized the specific values to be created and understand their importance, you can move on to the next step, which is to develop a set of key performance indicators (KPIs). These types of indicators are used to control value creation, taking into account the bigger picture, which is the broader ecosystem. Sometimes the visionary valuation of a given company can be so revolutionary that it can be very difficult to accurately determine its potential. It can be hard to determine whether the implementation of the strategy is completely feasible. However, this does not mean that the strategy is bad. It all depends on how much risk a company is willing to take.
Strategy with flexibility
Strategies and plans enable the effective pursuit of set goals. External conditions and factors that are constantly changing should also be taken into account. They can directly affect the company's operations and make the previously planned activities fail to achieve adequate results or even contribute to the destruction of value. For this reason, one of the most important skills a company should have is flexibility, i.e. the ability to adapt previously planned strategies to current changes. Not only does this allow the company to achieve its goals faster, but it also allows it to appropriately take advantage of new opportunities that may arise along the way. Failure to adapt to ongoing changes can have very negative consequences - by disregarding emerging new threats and not paying attention to existing risks, a company can fail. Consistency in operations is very important but should not be an extreme. If certain operations no longer serve the company then necessary changes should be made as soon as possible to minimize the risk of potential losses.
In an ideal world, every company would have enough time to be able to develop the perfect strategy first before embarking on any venture. In reality, however, this is nearly impossible. Nowadays, change is occurring faster than ever and keeping up with it requires tremendous effort. Changes are also occurring among the numerous factors that affect the formation of a company's value. Gradual introduction of a previously developed strategy is something that works only in theory and has no application in practice. Taking new, revolutionary measures requires, above all, quick and decisive action. The advantage is gained by the company that presents something first and not by the business that will do the same thing after time has passed only with a developed strategy. Spotting new opportunities and seizing them as quickly as possible are the hallmarks of leaders. A strategy can be created in parallel with taking action and can be changed on the fly if the situation demands it. It is disastrous to strive to create a perfect strategy before taking action - better to introduce a product or service that will not be perfect right away, however, to do it first.
Every company should periodically evaluate the way it operates. During the implementation of the chosen strategy, it is inevitable that there will be some disruptions along the way, which must be dealt with. In order to do this properly, it is recommended to approach the situation in a somewhat perverse way. Most companies, when faced with a setback, focus on their past experience, their assets and infrastructure. However, it is worthwhile to approach the problem as if the company is just entering the market. By setting these factors aside, completely new and creative solutions can emerge. This not only provides the company with a huge opportunity for growth, but can also ensure that it stays ahead of competing companies that operate in a template fashion and stick to tried and tested, old-fashioned ways. It also allows the company to open up to completely new opportunities and also to anticipate potential threats that may arise in the future. This is the way used by many leaders, thanks to which their position continues to strengthen and remain unshaken.