What is the Future for Businesses with the respect to value

Value proposition was traditionally defined as the worthiness of an investment , purchase or program and it was understood in terms of cost-benefit analyses . However in the current world of fast change and high competitive rivalry , value proposition is defined as sustainable business development (Rainey , 2006 . In other words , a business creates value by creating a sustainable competitive advantage . This requires a flexible organizational structure which is built-to-change . A flexible organizational structure facilitates the continuous improvement program which creates a sustainable competitive advantage . Traditionally a business had three strategies at its disposal

: differentiation , cost minimization and quick response . Businesses created value by implementing one or a combination of these strategies . However the current environment is characterized a fast pace of change driven by technological innovation and therefore competitors can quickly copy these strategies and any competitive advantage resulting from implementing these strategies is no longer actionable

The challenge for businesses in the 21st century is how to manage change . Sometimes change occurs so fast that it redefines the very standards by which operations are measured . As a result it creates a disruptive effect . Stable , successful organizations are unable to cope with disruptive change because it is by definition unexpected . The disruptive effect might result from the introduction of rare transformation technology such as the digital means in photography . The challenges of creating value in this situation is illustrated in the case of Kodak as it tried to migrate to digital photography but failed because it did not have the organizational structure...