The Value generation triangle
Juan Andrés Ochoa
Juan Andrés Ochoa
Fundador y CEO de Castor Evolución digital. Autor, podcaster, speaker, músico, navegante y filósofo novato.
The Value generation triangle

Value flow, value proposition.

The expression Value is ubiquitous. That is why I have been reflecting a little around it.

We must design and deliver a great value proposition if we want better scenarios for our company or entrepreneurship. But this is not enough.

I came to a slightly deeper construct: .

The value generation triangle, and I want to share it with you.

The Value generation triangle

How is it composed?

1) Generate value for the customer

Here you are my preferred value definitions:

    • Value is what contributes to people’s goals.
    • Value is what people are willing to pay[1]. People can pay with money or in other aspects such as time or attention[2].
    • Value allows a product, service, or experience to alleviate pain, increase gains, or better their tasks or jobs[3] .

2) Continuous deliveries

Generating value for once is not enough. Just look at how often the market leaders offer something new. How often do Spotify, Netflix, or Platzi give you something new? I don’t think a week goes by without them doing it.

The client must perceive frequent and continuous improvements in the product, service, or experience that we deliver. In DevOps[4] this is called Continuous Delivery. Nothing can remain static and immovable in time.

We must improve faster than the market is expecting and our competitors are improving. And even more, the improvements must be stable and with quality.

3) The well-being of employees and the environment

The sense of a company must go beyond customer satisfaction. Ideally, it should contribute to a higher purpose.

I invite you to connect the company’s purpose with its employee’s and contractors’ well-being and the sustainability of the environment and nature.

The idea is not to spoil them to create wealth for a few.

4) Generation of value for the company

The organization’s generation of value arises in the center of the triangle applying Continuous and constant optimization and improvement. To achieve this, I invite you to explore Lean[5].

Value for the organization is getting closer to its Purpose, Objectives, and Key Results. To achieve this, I invite you to explore Lean. (OKRs).

Final thoughts:

I believe that the triangle of value gives an even more powerful approximation than the definition of value. Do you see the power too and find these ideas useful? Do you think there is something leftover or missing?

We invite you to follow us on our social networks: LinkedIn, Twitter y Facebook.

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[1] Thanks to Sarita Rangel for this definition.

[2] The sample of this is that social networks are “free,” but what we pay are our attention and data.

[3] https://www.strategyzer.com/canvas/value-proposition-canvas

[4] For more details, see:  https://castor.com.co/devops-para-que-sirve-y-en-donde-se-puede-usar/  (Spanish)

[5] https://thisislean.com/

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