How to Reimagine Value creation?

Value creation is about organizing value agents in the environment in such a way that they create value.

Agents of Value Network

1. Downstream firm

2. Upstream Supplier

3. Production Partners

4. End Users

Agents work towards increasing the value to the network called aggregate economic value, bringing a greater goodness in the network.

Value pie = Aggregate end user willingness to pay – economic cost of materials and resources

One with the maximum bargaining power will be able to extract maximum out of the value pie.

One needs to contribute to the value pie and let people take from it, you won’t be able to appropriate the network value unless this is done.

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