The Value Creation Process
The four dynamics of the new global economy—globalization, democracy, free markets, and sustainability—create an environment where economic, social, and ecological factors are increasingly interdependent. Consequently, natural resources companies need to move beyond looking only internally for value extraction and adopt a value creation approach by also looking externally for new competitive space. Maximum value creation is possible if companies embrace a number of critical perspectives:
- A global scope
- Business ecosystems
- Organization capabilities
- Corporate control
- Social value creation
The GMC value creation process comprises four phases:
- Establish the economic potential of the organization.
- Position the organization strategically for value creation.
- Design the core process and organization to realize the identified economic potential.
- Implementing the design.