Creating Value
December 14, 2008 – 12:07 am | by Matt AckersonHow does one create value?
Assume that value is a subjective judgment and not an objective measure. Value is created in two ways: through perception and function.
Paper currency has value. There is the perception that is has value: we as a society have collectively deemed it to be valuable. It is also functional: is can be traded for goods and services.
Google is valuable. Google takes the mess that is the internet and makes it easily accessible and searchable. Google has high functional value as a result of solving this problem.
Creating functional value requires having the right set of skills or tools, and perhaps a good idea or two. Creating the perception of value is an art that is just as difficult to master. Look at Mint.com. Refreshing money management. Mint. I get it. But more than that, I feel good from the moment that I have entered the site. And I am going to feel good about using it. This is a result of the near flawless design coupled with the facts, ideas, or stories behind the company’s existence.
Compare this to Buxfur. Compare this to Wesabe (not the best name). Compare this to Yodlee. Compare this to Geezeo.
The difference is clear. Some of these companies provide a more functional product. Regardless, Mint is kicking their ass because Mint has executed beautifully to achieve a more compelling perception of value.
Remember the dualistic nature in your effort to create value, in whatever it is that you are building.
Tags: creating value, functional value, marketing, perception, percieved value, value
