Value creation is the steps the business takes to deliver the products and service that was defined by the value definition process. Value creation inputs raw material and delivers a product or service that conform with the value that is promised to the customer. Value creation employs people, equipment, technologies and other assets to create value. Different types of processes are being used to create value for customers:
- processes deliver adds directly value that will influence the customer’s experience of the product or service for example in a manufacturing process of cars the process of attaching the wheel to the car will be a core process.
- Supporting processes brings the right type of people, equipment and other assets to enable core processes within the business. A supporting process will for example be the process that ensures that the employee who attaches the wheel to the car is sufficiently trained.
- Governance processes sets standards in place to ensure that the value is created according to a set standard. The process that sets the tolerances of how tight the nuts must be screwed when the wheel is attached to the car will be defines as a governance process.
- Monitoring processes monitors if the process adhered to governance and is performing within targeted performance levels as was define in the value measurement process.
Ultimately a transformation programme will define changes in business processes by:
- Improving the sequence or number of steps that is used to create value
- Improving the governance enforced on the value creating business processes
- Improving the quality of people, equipment or other assets used to enable the value creating business processes
- An improvement in the quality of raw material that is provided as input into the value creating process.