Value creation is an activity that produces a benefit to people. It is the basis of all economic activity with the exception of rent seeking. It is common for businesses to view strategies, processes, practices, technologies, products and services in terms of value creation. For example, looking at the value difference between process inputs and outputs. The following are basic types of value creation.
InformationInformation that is actionable, timely, accurate and credible has value. For example, an accurate weather forecast allows people to plan their weekend. Meaningful knowledge that isn't timely or actionable can also have significant value.
NeedsFunctions and features that fulfill customer needs. Customer needs are based on the subjective evaluations of customers. They include both basic physical needs such as food and desired items such as diamonds.
ExperiencesIntangible benefits such as an activity that is enjoyable.
Objectives & GoalsProcesses and practices that achieve objectives and goals. For example, studying may achieve an objective such as passing a test. This may be related to a goal such as graduating with a degree.Products and services that work as expected in a wide range of conditions over time. For example, a bicycle might work reliably with minor maintenance for more than 5 years.
Quality of LifeThe things that make communities happy, healthy, fulfilled, peaceful and prosperous such as a clean environment, quality education and adequate healthcare.
RiskThings that reduce risks such as safety features.
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