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84 Examples of Added Value

 , October 30, 2015 updated on July 12, 2022
Added value is the difference between the value of inputs and outputs of a business, team, process or activity. For example, if you mow your lawn, your lawn becomes more valuable to you as you may see it as more usable and aesthetically pleasing. Value can be added by a business, government, service, product, team, process, activity, task or by capital such as a machine. The following are types of added value with an illustrative example of each.
Automating WorkSoftware
Building Houses / BuildingsCarpenter
Building InfrastructureConstruction Company
ClothingFashion Brand
Communicating a MessageDigital Advertising Company
Computing ThingsMobile App
Connecting Buyers to SellersOnline Auction
Connecting PeopleConference
ConvenienceConvenience Store
Converting Materials to a More Usable FormLumber Mill
Cooking FoodHomemaker / Restaurant
Crafting ThingsCraftsperson
Creating a Sense of BelongingTeam Sports
Creating ArtArtist
Creating Electricity From a ResourcePower Plant (e.g. burns natural gas)
Creating Electricity From EnergySolar Panels
Creating MediaVlogger / Magazine
Creating Shared ExperiencesConcert
Creating Social EnvironmentsNightclub
CultureLocal Festival
Custom ManufacturingCustom T-shirt Printing
Customer SupportCustomer Service Functions of an Airline
Delivering ProductsPackage Delivery / Ecommerce
DesignGraphics Design Freelancer
Developing a TechnologyFreelance Software Developer
Developing KnowledgeNon-fiction Author
Distributing ProductsRetailer
Education / LearningUniversity / Trade School
EntertainingStreaming Media
Epic ExperienceVideo Game
Executing a Business ProcessCustomer Service Outsourcing
Facilitating CommercePayment App
Facilitating CommunicationMobile Voice Service
Facilitating Debate / ArgumentsSocial Media
Facilitating Promotion / Self PromotionSocial Media
Fixing SomethingPlumber
Friendly Service / Being NiceHotel Service Desk
Generating Social StatusFashion Brand
Growing FoodFarmer
Housing / ShelterLandlord
InvestmentsExchange Traded Fund
Maintaining ThingsHandyman / Handyperson
Making Things More Aesthetically PleasingInterior Design
Manufacturing ProductsSolar Panel Manufacturer
Marketing / Selling AssetsReal Estate Agent
Marketing / Selling GoodsRetailer
Nature ExperiencesNational Park
Operating InfrastructureData Center
Opportunity to PlayPark / Video Game
Organizing EventsWedding Planner
Packaging SomethingFood Processing Facility
Preserving WealthBank Account
Providing a MarketFlea Market / Stock Market
Providing a StandardBuilding Codes
Providing AdventureSailboat
Providing Choice / VarietyGrocery Store With 5 Kinds of Apples
Providing GossipSocial Media
Providing Research ToolsInternet Search
Providing SafetySidewalk / Pedestrian Infrastructure
Providing SeatingRestaurant
Providing SecurityUnbreakable Door
Providing Social InteractionGym / Personal Trainer
RecreationSkating Rink
Reducing a RiskFire Detector
Reducing PollutionAir Purifier / Forest
Regulating an IndustryTransportation Safety Department of a Government
Resolving DisputesLawyer
Saving TimeExpress Train / Bullet Train
Solving Customer ProblemsLandscaper
Storing ValueMoney / Bank Accounts
StyleFashion Brand
Tech SupportCloud Services Support Tickets
Testing ThingsQuality Control Department of Manufacturer
TraditionsTraditional Dance Festival
Transferring a RiskInsurance
Transmitting InformationObjective News
Transmitting OpinionsBiased News
Transporting GoodsShipping Service
Transporting PeopleAirline
Useful AdviceConsultant

Calculating Added Value

Added value is the difference between the value of the inputs and outputs of an activity, process, service or organization. In other words, it is a way to measure value generation at any level of a business. As a simple example, if a fruit stand buys an apple for $1 and sells it for $2, the added value of the transaction is $1. It is difficult to calculate added value when no money actually changes hands but it can be estimated. For example, the fruit stand may estimate that distributing the apples produces $0.50 value, cleaning the apples produces $0.10 and selling the apples produces $0.40 in value. Note that this adds up to the $1 in total value creation.

Added Value vs Value Capture

Added value is the creation of value. You may or may not be able to capture this value for yourself. For example, an author that publishes a book that changes the world may only get paid a very small part of the value that they have generated. This is a very common situation whereby creating value doesn't mean that you get paid that value.

Added Value vs Rent Seeking

Added value is the creation of value whereby you might try to capture some of this value for yourself. Rent seeking is the process of capturing value without creating it. For example, an employee who tries to avoid work and value creation but aggressively seeks compensation, promotions and political power.

Negative Value

Things can create negative value known as economic bads. For example, a service that sprays a chemical on a lawn that creates $40 in value by killing a few weeds that causes $40,000 in health damage to a neighborhood.
Overview: Added Value
DefinitionThe difference between the value of inputs and outputs of something.
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Added Value
Augmented Product
Bricks And Clicks
Business Markets
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Club Goods
Coercive Monopoly
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Original Equipment Manufacturer
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Two Sided Market
Utility Computing
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