Understanding value creation : the value matrix and the value cube

• Main Author: Martinez-Hernandez, Veronica
• Published: University of Strathclyde 2003
• Subjects: 658; Management & business studies
• Online Access: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.273405

This thesis is about creating a better understanding of value creation. It proposes 'the value cube', a new framework to describe, how organisations should align and manage their operations, resources, capabilities and competencies with their value propositions to create value. This thesis started with an exploratory analysis in value; as a result several unsolved issues, inconsistencies and weaknesses of current solutions were identified. Based on those, this research proposed two value dimensions - Hard and Soft Value. The value matrix was created by bringing together the two value dimensions and the propositions from Treacy and Wiersema (1996). As a result, six value propositions emerged, To describe the functionality of each value proposition in greater depth, the value matrix was extended into a cube: 'the value cube'. Empirical evidence provided through eight case studies and a workshop-study validates the value cube, establishes the appropriate unit of analysis an d the value cube's footprints. The five research questions of this research conclude that: (1) Value can be deployed in 'hard value' and 'soft value'. (2) The six value propositions of the value cube are valid and two of them 'simplifiers' and 'socialisors' are novel. Thus, the value propositions of the value cube offer a wider scope and flexibility than current frameworks, to describe and/or classify business performance. (3) The value cube can be applied to 'business unit level' or 'whole organisation'; however the application of the value cube at business unit level seems to be more sensible. (4) Therefore, a single organisation can have more than one value proposition. (5) The value cube provides general guidelines or 'footprints' of value creation for its six value propositions. From the beginning of this research, criteria for the evaluation of the quality of the research were developed. demonstrate that this research has satisfactory fulfilled the criteria. Consequently, this Consequently, this research reached the quality standards of constructive/pure research.