Value Creation is the practice of generating new value through collaboration and partnership, contrasted with value capture which focuses on extracting maximum value from existing transactions.
The Distinction
Value Capture:
- Extracting from transactions
- Maximizing what we take
- Zero-sum thinking
- Limited by transaction size
Value Creation:
- Generating through collaboration
- Multiplying what exists
- Abundance thinking
- Unlimited by imagination
How It Works
Value Creation happens when:
- Partners collaborate authentically
- New possibilities emerge
- Capabilities multiply
- Innovation flourishes
- Everyone benefits
Why It Matters
Organizations focused on Value Creation:
- Build sustainable partnerships
- Enable exponential growth
- Create competitive advantage
- Develop loyal advocates
- Multiply value continuously
The shift from capture to creation transforms business from extraction to multiplication.