We just conducted a workshop for a prominent software company on the topic of business value creation.
It was a deep dive into the dynamics of creating measurable, monetizable business value, and the frameworks that drive it.
But as the discussions wrapped up, an intriguing question arose.
“Venkat, while these strategies resonate with established businesses, how do they apply to startups or digital natives? How exactly should we reframe the value conversation?”
This set the stage for a shift in perspective.
For many startups, the traditional conversation about ‘value’ might not hold the same weight.
Instead, the lens should shift to ‘risk’.
In the fast-paced world of startups, understanding and mitigating risks is critical.
It’s about the different types of risks, their probabilities, and their potential costs.
For startup founders and CXOs, this risk-centric dialogue often precedes the value-centric one.
However, it’s essential to recognize that it isn’t an “either-or” scenario.
It’s not about choosing between value and risk.
Instead, it’s about understanding that you need to beat the ‘tyranny of the “or”‘ and embrace the potential of the “and”.
Both value and risk play critical roles, but their sequence might vary based on the nature of the organization.
For traditional, established organizations: Start with the business value, then delve into the risks.
For digital-native startups: Begin with risk conversation, and then segway into the value conversation.
Regardless of the approach, one truth remains consistent: the importance of measuring and monetizing.
Without a concrete framework to measure value or risk, your organization might miss out on realizing the full potential of your offerings.
If customers can’t measure or monetize the value you bring, they might fail to see what sets you apart. Your unique distinction and differentiation could get lost in translation.
While the principles of business might remain consistent, the approach can vary based on the organizational landscape.
Whether you’re an established enterprise or a budding startup, understanding the balance between value and risk can make all the difference.
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