Navigating an ever-evolving business world is no small feat. We’ve accumulated 90 percent of the world’s data from various avenues, like social media interactions, online purchases, GPS coordinates, and health metrics over the last two years. In 2023, it was projected that 91.6 percent of Fortune 1000 companies were investing in Big Data and AI to stay competitive. By 2026, it’s estimated that the wearable AI market will be worth a staggering $69.51 billion. Even more impressively, by 2030, 50 billion devices are expected to be part of the Internet of Things.
In the face of diverse innovation, the process of adding value remains consistent: translate creativity into marketable products or services promptly. Here’s a breakdown of the process:
The Value Driver: Creativity
Innovation hinges on creativity, which primarily originates from two areas: 1) when individuals attempt to solve their own problems, and 2) when they measure their performance against industry norms, identify gaps, and figure out necessary improvements before competitors do. This is the basis of a startup: An innovative idea is rapidly converted into a marketable product or service to reach a broad customer base and generate increased value.
The more employees generate creative ideas within an organization, the better the company is positioned to identify continual opportunities for enhancement and value creation. Each employee contributes a unique perspective that can fuel creativity in ways others may not consider. Therefore, it’s vital for leaders to harness this creativity to quickly act on valuable ideas.
Consider a warehouse worker who, while sorting products, identifies a more efficient method to categorize items, speeding up the process and reducing errors. Their creativity is valuable to the company, but unless they can communicate this idea to their supervisor and share it with the team, the value remains confined. More efficiency can be achieved if this creative solution is put into practice sooner, thereby maximizing its value for the company.
Amplifying Value through Commoditization
Any valuable innovation can be commoditized to enhance its value, be it a product, a process, or just an idea for improvement. The value generated from such commoditization isn’t just monetary. For instance, when I come across an online article about a DIY gardening technique, someone has commoditized their creative idea by writing that article. They may have done so for profit, or simply to share a technique that brought them joy and success in their garden.
Likewise, I can take that article, refine the gardening technique, and create a new idea. But unless I share it with others, it only benefits me. Depending on what I value — be it money, recognition, or disseminating helpful information — I can strategize how best to share my idea to maximize its value. By understanding what value I aim to create, I can more effectively drive it.
Most profit-driven companies aim for sustained profits and greater client success, but having more refined value propositions can guide targeted achievements. Leaders should clearly convey what they value to everyone in the organization and encourage them to create ideas that drive that value.
Commoditization at Speed: The Value Maximizer
Copying an invention or an improvement so that others can benefit from it increases its value. But to truly maximize its value, quick scaling is necessary. The quicker creative ideas are implemented and scaled, the more valuable they become. This keeps a company competitive and also saves time, money, and resources that would otherwise be wasted by not acting on an innovative solution.
Consider, for instance, a bakery that is struggling with long queues during peak hours. A staff member realizes that an additional cash register could significantly speed up customer service. The quicker this idea is reported to the bakery owner, the faster the queue issue can be resolved, thereby increasing customer satisfaction and potentially the bakery’s profits. If the same person shares this insight with other similar businesses, they can prevent long queues at these places too, thus maximizing the value of their idea.
Leaders need to establish a process for the flow of creative ideas. Each member should know the steps to follow when they have a creative idea: from reporting to a superior to peer or group reviews, and then to whoever can implement it. This process should also include steps for deciding the scalability of the idea, allowing the company to extract more value from it.
Rapid commoditization of creativity might render some jobs redundant. However, labor evolution is unavoidable and not necessarily detrimental. Industries have historically evolved to become more efficient with fewer workers, allowing people to seek new careers and innovative opportunities. People whose roles become obsolete usually adapt and find new ways to apply their skills to meet new demands, thereby increasing their personal value. Regardless of the situation, the process of generating value remains the same: the quicker we identify and commoditize creativity, the more value we generate.
