Business Issue  


Creating Value Versus Adding Value


The significant difference between creating value in comparison to adding value is still much misconstrued by employees at different echelon of management. Below is a real case discussion on the subject matter by Practice Prof KC Chan (KC), Prof Eko Indrajit (EK) KC Lok (LO) and Priscilla Tanjung (PT).

EK: What is the key difference? Tell by KISSSS (Keep It Simple, Short, Sweet, and Sharp)
KC: Adding value has a limit. Let us use a case analysis for the book that we have published, “Technopreneurship: From Strategy to Results” @ US$20. We add value to readers who purchased the book and applied it to themselves (self-development) and their organizations (organizational capability development). However, we create value by initiating the TWAN (The Wholistic ASEAN Network) because by joining TWAN as a member each reader will receive the same book @ US$18 but as an e-Book plus another e-Book (Essentials of Wholistic Thinking) to reinforce the paramount importance of “Wholistic Thinking” which changes the way we think and do things more effectively and efficiently resulting in enhancing our productivity performance. Thus, we are not selling a book. We are providing solutions to improve the reader competence level through 4 types of thinking skills, i.e. holistic thinking for effective planning, systems thinking for effective control, critical thinking for effective decision making, and lateral thinking for empathy analysis for continuous improvements. Adding value is an incremental process gain. Creating value is a multiplying effect about 5-10 times greater than adding value.

LO: Why there is a need for Technopreneurship and why must be adept in thinking completely?
KC: Technopreneurship is a multiplying process of nurturing and developing an adequate pipeline of technopreneurs from being a capable individual in management, to enhancing team capacity through effective leadership, and ultimately a successful technopreneur who achieve success, scale the success, sustain the success, and make a significance to society by sharing the success. The spirit of technopreneurship (process) will live on, not the technopreneur (person). Ultimately technology will transform entrepreneur into technopreneur because those who survive has to perform the mind shift to embrace, enhance, and enable the optimization of technology to stay relevant and competitive in the VUCA world of business connected by the cyber internet-of-things and computer integrated smart factories in creating the best value-adding global supply chain. Connect or vanish. Fifty percent of the wealthiest people on earth are technopreneurs.

PT: How can we ensure that by reading the book on Technopreneurship the reader will change from adding value to creating value?
KC: The 6As process of comprehending the vital importance of Technopreneurship are:
1. Awareness = I know the difference between intrapeneur, entrepreneur, and technopreneur
2. Alignment = I understand that technopreneur is a person, technopreneurship is a process
3. Action = I can be nurtured and developed into a technopreneur with the passion to succeed by inculcating the spirit of technopreneurship
4. Adoption = I am convinced that in the 4th industrial revolution technology rules the world so entrepreneurship will transform to technopreneurship to stay relevant and to attain sustainable competitive advantage in the VUCA business environment
5. Assurance = I realized that anything that cannot be measured is difficult to manage and/or control; hence the outcome of technopreneurship is to transform products/services/solutions into faster, better and smarter ones
6. Anticipation = To inculcate technopreneurship, I need to apply holistic thinking for clarity in effective planning, systems thinking for effective control, and critical thinking for effective decision-making; to improve continuously I need to consider the opportunities and threats, facts and trends, create and innovate current products/services/solutions to stay relevant and remain competitive; commitment by focusing on the vision, mission and core values; to be sure I also need to apply lateral thinking, i.e. the six thinking hats, for effective empathy analysis. These four types of thinking skills will engage the technopreneur on how to embrace wholly thinking (or wholistically utilizing the whole brain) to attain accelerated learning

To change from adding value as a person (Technopreneur) to creating value as a multiplying process (Technopreneurship) is to transform conventional manager into “thinking human capital” who has expert power for integration of resources, communicative power for successful implementation of projects by a high performance team, adaptive power for innovation of continuous improvement initiatives to replace current products/services through six different perspectives to achieve faster, better and smarter results to meet stakeholders’ expectations.



EK, LO, PT: We need an insight into the significant difference between creating value and adding value to a specific situation. A systems diagram will help to resolve our concerns.
KC: Let us start with the systems diagram for value adding activities of a supply chain.

KC, EK, LO, PT: From the value creating activities systems diagram, it is obvious that synergy for “nuclear effect” is accomplished. We do not work as individuals. We work together as partners by adding value based on our strengths and not our weaknesses. The organization is project-driven with clearly defined primary objective (only one; non-negotiable) and secondary objectives (can be more than one; can be compromised in the event that prioritization is required). Adding value can be automated or replaced by robots. Creating value is synonymous to the project manager who designs the unmanned manufacturing system or a turnkey smart factory whose core competence is unique, scalable and hard to emulate. Technopreneurship is indeed the future competence of creating value globally through effective optimization and utilization of technology to achieve value adding supply chain for cost, quality, speed, flexibility and dependability advantageous. To inculcate or not to inculcate technopreneurship is of your own prevail for redundancy or employability.

REVIEW BY DR CASEY LOO ON THE BOOK

“TECHNOPRENEURSHIP: FROM STRATEGY TO RESULTS”


Dr Casey Loo
Publisher, FurnitureAndFurnishing.com
Vice President, International Alliance of Furnishing Publications Advisor, Council of Asian Furniture Associations

I would like to convey my heartiest congratulations to the two authors – Practice Professor KC Chan and Professor Richardus Eko Indrajit for this book on Technopreneurship. I checked around and surprisingly found few books on Technopreneurship that had been published over the past decade. The number of books totaled 10 covering this critical knowledge area thus making this latest addition the 11th. Those earlier books appear either too academic to be of practical value or they lack business models or frameworks to aid real world application.

This latest book is the outcome of bridging the theory and practice gap in Technopreneurship. The authors come with solid industry background across different segments. Based on an understanding of the ever-changing business environment, the book explains clearly the holistic treatment of enhancing management-leadershiptechnopreneurship good practices to survive in the era of VUCA (Volatile-Uncertain-Complex-Ambiguous) couple to Industrial Revolution 4.0. To stay competitive, sustainable and relevant, it is imperative to change from the traditional approach in running a company to a wholesome approach consisting of four types of thinking skills which must cut across the entire organization, i.e. from strategic to business to operations level. According to the book, the key is to achieve accelerated learning to flourish into a smart organization by being better, faster and wiser than the competition. This comes about as a result of continuous improvements of its thinking human capital by nurturing and developing their competence in holistic, systems, critical, and lateral thinking. Thinking is the most basic yet the ultimate competitive advantage of all organizations to train their human capital how to think using the whole brain approach, i.e. both hard (left brain) and soft (right brain) skills.

The book is easy to read and follows the 6As process of answering the five keys of Technopreneurship:
• Awareness - understand the difference between intrapeneur, entrepreneur and technopreneur
• Alignment - technopreneur is a person; technopreneurship is a process to nurture the innovative spirit of a technopreneur for all those who are teachable and can be developed
• Action - management for effective integration of people, process and tools; leadership for effective execution by converting strategy into projects for successful implementation; technopreneurship for effective innovation by challenging the norm and to transform expensive and sophisticated products/ services/solutions into simple and affordable ones
• Adoption - in the era of VUCA and 4th industrial revolution, routine work will be replaced by digital work and automation for higher productivity; to stay employable everyone has to adopt a lifelong learning attitude to be accountable for improving and advancing the competency level to keep pace with the impact of globalization caused by the advent cycle of new technology
• Assurance - continuous improvements is no longer an option; lean six sigma, reverse innovation, disruptive innovation are all good concepts until it is implementable; the ultimate key performance indicators are universal, i.e. cost, quality, speed, flexibility, delivery promise
• Anticipation - risk is an uncertain event and unavoidable; risk can be transform from threats into opportunities; nevertheless risk response action plan must be planned in advanced to cater for any unforeseen circumstances because technology can become obsolete overnight.
The book covers the most crucial elements of Technopreneurship. The strategy of a technopreneur must be transformed into tactically viable projects for implementation with the right processes to be executed by the right people, and equip them with the right tools/technologies for total productivity and optimization of resources (money, method, manpower, material, minute). This is a MUST READ book if we are to successfully ride the wave of the VUCA economy in the 4th Industrial Revolution impacted by the key forces of Globalization – TECHNOLOGY!

Anyone who wish to purchase the book (available as e-Book or hard copy), please contact: kclok@twan-global.com