praablog

Amazon.com Widgets


Our business world has become a sophisticated but accessible environment in which consumers and producers have the ability to interact without an agent or “middleman”. The assumption, therefore, is that all middleman functions will eventually cease to exist.

On a logical level this reasoning is correct, however, as a practical level there are opportunities that present itself in the challenge of extinction for the middleman function. Survival for this functionality is driven by the middleman finding a unique way to add value. This may come in the form of taking on additional functions, managing competitiveness or any other function that delivers a measurable value add to his clients.

This value-add requirement does not exclusively apply to the middleman only, but applies across the board. A supplier that adds no value can’t compete and consumers will migrate to his competitor. The consumer will assess his exchange of cash for resource or product based upon the perceived value that is added to the article. As all consumers have an inherent desire to get a “good deal” consumers will spend their money where they perceive the highest value-add is.

The art lies in identifying where to add value, value must be tangible. Simply making it “better” does not qualify as adding value. This principle has filtered down throughout the entire business structure to the point that it defines the relationship between employers and their employees.

Employers no longer consider a fulfillment of task to be sufficient. An employer demands that an employee engage with other employees and that their interaction delivers something tangible and beneficial for the employer. Employees on the other hand is no longer satisfied with a salary at the end of a month but demands to be stimulated and challenged at work. Recognition forms part of the value-add of the employer.

Let’s get the discussion going. Remember we are looking to exchange practical information. This blog is more concerned with your experiences than your academical knowledge. 

How do we define value-add? 

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The basis of this discussion comes from the international bestseller: “Business @ the speed of thought” by Bill Gates and Collins Hemingway.