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Creating Value vs. Adding Value

A dialogue session titled 'Creating Value versus Adding Value' was held by SiPi on November 20, 2015, focusing on the importance of value creation in Singapore's economy amidst economic challenges. Dr. Michael Teng highlighted the distinction between adding value, which involves enhancing existing offerings, and creating value, which requires delivering unique qualities to customers. The session encouraged participants to evaluate their business strategies and explore Business Model Innovation as a means to start creating value.

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67 views1 page

Creating Value vs. Adding Value

A dialogue session titled 'Creating Value versus Adding Value' was held by SiPi on November 20, 2015, focusing on the importance of value creation in Singapore's economy amidst economic challenges. Dr. Michael Teng highlighted the distinction between adding value, which involves enhancing existing offerings, and creating value, which requires delivering unique qualities to customers. The session encouraged participants to evaluate their business strategies and explore Business Model Innovation as a means to start creating value.

Uploaded by

zckid5136
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Creating Value vs.

Adding Value

On 20 November 2015, SiPi organised a dialogue session titled ‘Creating Value versus
Adding Value’. With the government emphasising value creation as one of the key
strategies to Singapore’s economy, it is clear that that ‘creating value’ is now the current
buzzword in the business climate. The economic slowdown that has hit many local
businesses, and manufacturers’ now facing rising business costs and slow productivity
growth, has left business grappling for survival. Coupled with the advancement in e-
commerce that has made it easier for buyers to bypass the middlemen and find their
sellers directly, thus rendering many SMEs ineffectual, businesses must constantly
transform to keep up with such changes and cope with these challenges.

Is creating value the answer to these challenges? This set the tone for the dialogue that
afternoon, where more than 80 participants from various SMEs attended the session.

Dr Michael Teng, Director of SiPi, started out by stating the difference between ‘adding
value’ and ‘creating value’. Value adding, he said, involves taking something with a value
and adding on to it for a customer. This may take the form of incentives, loyalty
programmes, giveaways etc and is expected in the course of regular business. Creating
value, on the other hand, goes beyond simply adding value. To effectively create value,
one must first identify a unique quality and deliver this original value to the customer.
The uniqueness of what is offered – whether it is an experience, product, or service –
ensures an exponential growth.

There are advantages to both adding and creating value, Dr Teng emphasized. Different
businesses having differing needs and at differing stages of their business growth may
see value in adding or creating value and there is no fixed route a business can take.
Participants were then encouraged to question whether their businesses was more
suited to value creation or value adding. This was facilitated by a debate towards the
end of the session where participants engaged directly with each other to discuss the
positives and drawbacks of both methods.

The dialogue ended with an interactive panel discussion during which further questions
on how to embark on the value creation journey were addressed. It was mentioned that
one of the primary ways for businesses to start creating value is through Business Model
Innovation (BMI), which is defined as an innovative way to capture, create, develop, and
deliver value to the customers and market.

http://www.sipi.org.sg/index.php/creating-value-vs-adding-value/

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