Abstract
At the basis of all growth is a reinforcing feedback loop, be it in nature, business or any social system. The value creation model is a visualisation of that reinforcing loop and of how a system grows by creating value for the environment from which it derives its right to exist. The core of the model is formed by the distinctive competences—those that enable the organisation to produce goods or services. The value creation model is a sound way to define what differentiates you from others—your identity and your capabilities—but that can only be done when placed meaningfully in the context in which you operate. That context is determined in the first place by the relationship with the client. If you can choose your clients in a free market, you are operating in a market organisation. However, if you are limited to only one organisation (or very few) and are bound to follow their instructions, you are working in a task organisation. In the second place the context is determined by the ownership of the output. If the organisation is the owner of the output you are working in a product output organisation. If the client is the owner of the output, you are working in a capacity output organisation. These four types have big consequences for your value creation model.
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Schaveling, J., Bryan, B. (2018). The Value Creation Model. In: Making Better Decisions Using Systems Thinking. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-63880-5_7
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DOI: https://doi.org/10.1007/978-3-319-63880-5_7
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