A Value Creation Model For Business

by Jay Deragon on 06/26/2013

SocialBusinessAt the dawn of the 21st Century a funny thing happened. The internet began connecting everyone to everything and the information that 20 years ago was only available to the richest billionaire became available to one third of everyone on the entire planet.

Everyone has begun to learn and grow in the knowledge of how technology has shifted the attention from the tangible to the intangible elements which create value.  Elements such as communications, collaboration, knowledge sharing, innovation, relationships and human connectivity to people and issues of the heart were once invisible (intangible) but now visible (tangible). The transformation from one state to the other is the result of digital technology.

Subsequently business must transform from organizing people and processes for profit to organizing people and ideas for the purpose of creating new value.  But the new value markets want is no longer tied to visible things rather invisible things like that which stirs our minds and connects our hearts.

Evidence of a Shift In Value Creation Models

In an earlier post this week titled “What Are The Most Popular Topics on LinkedIn Today?” we stated “Since launching LinkedIn Today just eight months ago the monthly unique visitors to LinkedIn has gone from 28 million to 39 million.”

What can your business learn from the success of LinkedIn Today?

  1. Every business is a social network of relationships
  2. People find value in content that stirs our minds to think
  3. Good content is the engagement tool of the 21st century
  4. Intangible topics create the most value and interest by connecting our hearts

Steps 1 – 4 are the intangible attributes of  value creation for any business hoping to succeed in the Social Era.

LinkedIn is a social network that connects people to people. LinkedIn has added value through the curation of content from third parties. So LinkedIn’s business model includes connecting people and engaging them with good content. So what does LinkedIn’s business model got to do with your business model?  Everything!

In order to learn how your business can create perpetual value in the 21st Century you have to discover and enhance the creativity of the human capital within your organization so you can build relationship capital to learn how to create perpetual value.

Your business is in fact a social network and you can stir people’s minds by creating and sharing valuable content that engages people in relevant conversations.  But to do so you have to change your mental models in order to change your business models to connect with the hearts and minds of people.

Otherwise any efforts to engage simply becomes a one sided mind game aimed at tricking people into a transaction. That model creates no value.

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