How to Build a Value Creation Ecosystem as a CEO?

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most famous business leaders
most famous business leaders

Disruption and the scope of the value creation ecosystem are inextricably linked. As supply chains have struggled in lieu of the pandemic, channels to market have evolved, and companies’ roles in caring for their customers and employees have grown in importance in recent months. 

It has become evident that the quest for financial efficiency and enhanced profitability, which has long been at the heart of traditional value creation models, is insufficient. Therefore, businesses and CEOs must do more. 

As a value creator CEO seeking to build enterprise value, one must foster resilience and promote society’s well-being and sustainable development. In the face of disruptions, developing a more holistic value-based leadership model is paramount. So, how can CEOs of the world achieve the same? 

The answer lies in taking vital steps – including developing new supply chains, product innovations, new people initiatives, or even new transparency standards in decision-making – to transform disruption into opportunities. The result of such a value-based leadership ecosystem is unprecedented success in both the industry and society. 

Challenges in value creation at present

For several years, the balance between the following three drivers of corporate value has shifted. These three drivers include: 

  • Financial productivity
  • Society
  • Resilience

The pandemic has caused upheaval across all three drivers. Companies that focus on financial productivity by prioritizing short-term gains over long-term goals now require a complete mind-shift to become more sustainable. Companies that barely looked beyond shareholders now need to rethink how they can contribute effectively to society. Lastly, companies and most famous business leaders that did not have the resilience to overcome disrupted supply chains or the shift to digital are now in a spot of bother. 

Therefore, value creator leaders must flex and update important competencies such as strategic direction-setting, resource allocation procedures, and governance to compete successfully in the twenty-first century. Stretching these same competencies is also critical for leaders to make their organizations more resilient and meaningful contributors to society, producing and preserving enterprise value. 

STRATEGIES TO REVIVE YOUR VALUE CREATION ECOSYSTEM 

  • Focus on agility and speed of execution

Whether you are one of the most famous business leaders or a new CEO, leaders no longer have the luxury of implementing a plan slowly in the face of many fast-moving disruptors, rising real-time scrutiny, and changes among the different drivers of business value. Organizations with agile operational models and quicker customer service turnarounds are poised to drive more value both to the business and the customer.  

The value of speed in execution and customer-centricity has been proven effective by top fintech leaders like Sanjiv Bajaj – the Chairman and Managing Director of Bajaj Finserv. Over the last decade, he has transformed the face of Bajaj’s financial services by combining advanced technology and digital transformation to create a frictionless customer banking experience. Where earlier loan disbursal approvals took endless documentation and many days of to and fro, Bajaj brought it down to under 30 seconds without any documentation – even for new customers. As of March 2022, Bajaj Finserv boasts over 57 million customers closer to financial inclusion than ever. 

  • Embrace disruptive thinking and prioritize resources critically

Creating value means anticipating competitive disruptors and figuring out the right opportunities to attack if you are a new market entrant. As a value creator, you must adopt the blank-slate approach to figure out the market from scratch and create new sustainable models that augment enterprise value while differentiating yourself from the competition. Additionally, in today’s world of constant disruption and shifting value perceptions, any top business strategist must be ready to respond radically and swiftly in allocating resources where they’re most required – or the strategy will fail. It is more vital than ever to prioritise, identify, and act on the most effective value drivers in the value creation ecosystem. 

For example, Nathan Reddy (Founder and CEO) and Sriharsha Majety (Co-founder and CEO) faced an overcrowded market when they decided to launch the food delivery platform, Swiggy. Instead of aligning themselves with proven strategies that worked for the likes of Zomato, they went ahead to disrupt the market with a competitive brand communication strategy and streamlining their logistics network. Here, prioritization of resources was crucial. Swiggy realized that the unorganized nature of hyperlocal food delivery networks was a big concern for customers. This prompted Swiggy to devote its energies toward organizing the sector. On top of that, their promise of 30-minute deliveries and integration of grocery delivery on the same platform provided great value to customers. 

  • Be more attuned to your ecosystem

Building dynamism in one’s business strategy, plans, or behavior is essential when new disruptions, risks, and opportunities appear in one’s ecosystem. Ultimately, that means being in tune with your audience and industry, now made easier with social media and tools like social listening and real-time customer response management systems. 

Consumers will flip on a brand if they believe it is going against its promises. But they are willing to forgive if they believe the company has listened to their concerns and behaved appropriately. Companies that aren’t agile in maintaining and creating their brand and reputation will face increased challenges for value creation in the future. 

Conclusion

Today, all value creators and most famous business leaders must be aware of the broader value creation ecosystem, which has substantial consequences for creating or destroying company value. Opportunities for firms that comprehend and control all of their value drivers proactively and collaboratively are paralleled by significant risks for those that do not. 

Ultimately, knowing how to develop and implement your strategy in line with resilience and social value is the key. This is the biggest challenge every value creator faces – one that can be tackled by the three broad strategies outlined above.