Developing your organization, projects and products by delivering business value by optimizing workflows and seeking good and adequate team management and product development.
The arrangement of the business value in terms of my personal judgment and professional experience on the thirteen topics raised are as follows:
Usability, utility, and value of products (goods or services)
The meaning of any business endeavor is to connect an organization with the market by creating a product, product or service, to satisfy and/or create a need for consumers in the market, and thus to create value in two directions: for the consumer/customer and for manufacturer/supplier.
This value may be tangible and intangible, but in any case, it is quantifiable. The criterion is marketable, financially measurable and is related to the market valuation of the value of the company through the perspective of the products purchased (products or services) it creates and the number of customers using the product.
There are millions of textbook examples from the last four decades that show that manufacturers create a need and therefore value for consumers and themselves by imposing on the market goods and services that did not exist before. These pioneers in the business make their products usable, useful, and add value to consumers and meet any consumer or business needs.
There are many examples – it is enough to indicate the abbreviations of the four largest, global technology companies to prove this statement: GAFA.
From this point of view – for me, the usability, usefulness, and value of the products (goods or services) are first on my list. They also have the most accurate quantitative measure: market and financial.
Consumer and user satisfaction
By creating a relationship of satisfaction between the product (the goods or services) and the customers, you increase the consumer’s life cycle and sense of belonging to the product intended for consumers in the market.
This guarantees a steady and upward cash flow and extends the product life cycle. In order to keep the process going and increase the value it is necessary to make constant, changes, innovations, and development of this product so that you do not break the connection between the sense of belonging and customer satisfaction and the created product.
The fact is that every satisfied customer leads at least a few other clients, and every dissatisfied customer takes at least three times as many potential customers from us as the satisfied customer. So customer satisfaction is a key, key element in creating the right assessment of our relationship with the market. It is very important for every organization to understand this and to train its employees constantly so that they are constantly in touch with this connection, everyone, at every level, is aware that they are their organization’s ambassador to the world.
For these reasons, customer and customer satisfaction, in my opinion, are second on my list. Read more: Reasons for project failure.
All products (goods or services) are created by humans, they arise from an idea that builds on previously accumulated human knowledge. In order for this idea to be successful, it is necessary to create such an organization, a system of motivation and responsibility sharing, which is able to out-compete and convince the people who work in the organization, to create the value that their efforts are something more than work – it’s a mission that is changing the world for the better.
This culture should create in people the confidence, confidence, security, and desire to add value/contribution to the organization. It is crucial that internal rules, the culture of the organization and the managers themselves create incentives, tangible, intangible, most often monetary, to reward additional contributions – for new customers, new products, new services, and solutions. Any result of intellectual activity that adds value should be rewarded. Thus, the creator – employee will have a sense of recognition and satisfaction, and thus the risk of leaving and creating a competitive product will be significantly reduced.
For these reasons, organizational culture in the organization is, in my opinion, in third place in the list of thirteen topics.
With all the conditionality of the arrangement, it is possible to place innovation at the forefront of the list.
Innovation can build on a solution that has already been created but does not fully address the needs of a large user group, but only a limited number of them.
Innovation can be the creation of a product that has never existed before and thus creates new needs that will be met.
Innovation is a competitive advantage that resembles a monopoly because in the first months or years of existence it is a step ahead of all other competitors, the whole market is satisfied with your products (goods or services) and this allows us to generate maximum value and constant cash flows. Through product innovation, it creates an opportunity to evaluate the company and its business value in terms of potential and market development. That is why there are millions of companies around the world that are buying from even bigger competitors to acquire solutions that are already a fact, but they do not own them and want to outpace their competitors and create a stronger connection with their customers.
Innovation requires a lot of freedom and a lot of resources in the development phase: it is necessary to have freedom of thought, of ideas, to have less regulation, ie. there is a need for less control in terms of market rules. Protect (in countries with well-functioning judicial systems) all intellectual property objects. It is proven that the marketable assets of the major twenty global companies form tangible assets such as buildings, facilities, vehicles of no more than 8%!
The remaining 92% are intangible assets such as architectural projects, plans, inventions, utility models, know-how, work and production processes, patents, licenses, trademarks, trade name, geographical indications, industrial design, databases, computer programs, works of art, literature, and music, etc. intangible goods that are the result of human intellectual activity.
Here I will point out the following facts that are well known: The UK market creates 50% of all new and innovative companies in the EU.
After BREXIT (now scheduled for 1/31/2020), this will significantly affect the EU and those companies in the EU will automatically become twice as small! The EU has not yet created any EU companies in the US, China and Japan – by the beginning of 2020 – not one of the top 20 global consumer companies. The fact is that only SAP, which is a German technology company, is the only one to enter this ranking, but it creates solutions not for the general public but for the business.
So we see how over-regulation in the EU, with respect to freedom of enterprise, a culture of risk and fewer regulations, has allowed GAFA to be a reality in a market like the US, even though it is smaller than the European one. For comparison, in China to create competitors and analogs of these companies – GAFA. Japan also competes more successfully with the EU and is considered an innovator in three major technologies – automotive, robotics, high technology in medicine.
The big challenge for us Europeans lies in overcoming the organizational culture of EU companies, the more developed risk culture, the presence of smaller regulations, new ideas, human talent and enormous financial resources on the part of European companies in the development phase. All these factors make the most solvent market – the EU the least innovative and hence far behind the other huge economies – the US, China, and Japan in terms of innovation. Unfortunately, these processes are also linked to the reduction of red tape and over-regulation, which is currently difficult to reverse, given the declared policies of the new EC (2019 – 2024) and the BREXIT process (currently foreseen on 31/01/2020). ).
Employee behavior, skills, and maturity
There is no greater proof of the success of a company than the people who build it. All are important: visionaries, owners, managers, experts, contractors, innovators, consultants, production employees, administration – all of which form the most important asset of a company – human capital.
It all starts with people’s skills, their behavior, their dreams, their human experience and their desire to establish themselves as a company. Their talents, freely expressed, those intrinsic qualities, experiences, desires and emotions, give birth to ideas that then materialize in products (goods or services).
The cultural environment and scale of the market on which the products are created cannot be excluded. So, I put the behavior, skills and maturity of the employees in the fifth place, with all the others after them pointing to the next place as a generalized, collective image – the human factor.
The following four in my rankings: human resources, relationships and business-to-people relationships, workflows, and others beyond are covered in a broader context by the top five and are, in my view, an element of the broader business values described above, so I sort them after them like this: