Creating Value. Capturing Value.

Whether a startup, large corporate or government, the aim is always to create and capture value; be it for shareholders, constituents or other stakeholders. This unifying simplification allows CPA to tackle all types of projects by looking at them through this lens.

These two aspects of the debate - value creation and value capture - should ideally go hand in hand. There are those who create value, but cannot capture it. There are those who do not create value, but skim the markets to accrue rent. Both models are imperfect. The ideal combination is to both create and to capture.

Value is created through numerous channels, including (but not limited to):

• Innovation - product / process / systems / brand
  
• Productivity and efficiency enhancement

Value is captured through:

• Enhanced competitiveness vis-a-vis competitors

Capturing value is thus dependent on a mix of :

• Short term manoeuvres and barriers, as well as
  
• Long-term capabilities that are unique, difficult to imitate by competitors and which may have been developed over time. Such capabilities are easier to destroy than they are to create, but are critical to firms and regions alike.

These thoughts form the basis for our forthcoming discussions.