The New Value Equation for All Businesses

Business value used to be easy…we had an idea, we made it or promoted it, the market bought it and we paid our bills and invested the rest! Simple…..

Yesterday I was doing a social business workshop and was struck by the confusion of what business does these days….

Now trust me…this sounds wrong…..but business is actually simpler these days in creating value.

NewValueEquation

In the past we needed to source ideas, people and spend great deals of money telling the world how great we are….

Now if we embrace the social element in our culture to the business world then

  1. We have greater access to information, ideas and talent. It is not what we know, it is not who we know….it is what our network knows, what our network has access to…
  2. Access costs less than ownership and we can access anything we need from production to funding, from freelance talent to global markets.
  3. We don't need to manage people and processes…we need to faciliate networks. Managing is hard, facilitation is what we do in our everyday lives.
  4. We don't need to sell, we need to do what we are best at…and then allow those customers to sell for us.
  5. We are not stuck behind the walls of a corporation spending money on what the market thinks….we are part of the market, the customers are talking to us everyday free of charge and even willing to take on aspects of business for us…..ideas, selling and even producing.

Does social make it more complex to make money? No. It just means that we don't have to do it on our own, if we embrace the network rather than manage the parts of the process, then we can do it cheaper, quicker and with less risk.

What do you think? More complex or more human?

Author:
Anna has spent over 20 years as a Board Director at several global brands. She now runs her own company The Engaging Brand which supports business leaders who want to transition to the new social business model. She is also a speaker, writer and radio show presenter on social business, indeed her podcast The Engaging Brand has been nominated 6 years running as Best Business Podcast at the Podcast Awards. She brings an unusual mix of experience to business - she has a 1st Class Law Degree, MBA in marketing and is a qualified Chartered Accountant. This unusual mix means not just explaining the why of being social but how to turn social into a measurable business tactic to grow your bottom line. Her blog www.theengagingbrand.com is recognised as one of the leading UK marketing blogs.

0 Comments

  1. david.g.h.phillips@gmail.com'
    October 31, 2013 at 4:41 pm

    Yes Anna, It is all too easy.
    What follows these developments is the changed nature of organisation.
    Those that adopt you arguments will accelerate fast and way in front of the pack but they too will have to change in the new information lubricated age.

    As the internet acts as an agent in its own right changing, for example you photos to make them ‘look better’ without any significant action from you, this ability for the technologies to do things, often without our let or hindrance is the next challenge. For those left behind, well, I guess we will have to pick up the bits just as we did when slum clearance was a critical social issue.

  2. josh@rallyyourgoals.com'
    November 4, 2013 at 5:19 pm

    I might have to disagree with you, facilitating a network is still lots of work and definitely not easy, just a different skill set that from most people are used to. Many people are often fall victim to the misleading fact that marketing online is quick and easy. While it is easier than it used to be in the days when media was tightly controlled, it is still not the overnight solution many people think it is.

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