The "cultural value" side of things - a new approach to value.

MANUEL TELES FERNANDES| 2014

VALUE. The “cultural value” side of

things.


• Understanding value • Defining value • Finding a value construct model • Unpredictability as a major risk to value development and sustainability


WHAT DO THESE PRODUCTS HAVE IN COMMON?

Use value, or value as utility, is the purpose that justifies the existence/production of a product (good or service). This value is subjected to quantification, therefore tangible.

Note: Tangible value can be transacted in the form of exchange or barter, and it always implies the giving of something away in exchange to something else in return)


WHAT DO These PRODUCTS HAVE also IN COMMON?

They can be subjected to exchange or barter– They have economic value, or value as exchange.

Economic value is the result of any commoditization process of a “thing” with use value (Kopytoff, 1986), expressed by some kind of quantification in both (economic value and use value), therefore tangible by nature.

50c. 2 €. 20 €. 5 €.


Cultural value, or value as (collective) meaning and sign, is the result of a collective attitude towards a given thing or event, manifested as behaviour, commonly shared by a group of people. It has an esteem dimension, therefore considered as intangible Note: Intangible value, due to its nature, is not subject to transaction in any form, but it can be transferred from one recipient to another, without loss of possession.

BUT, WHAT DO These PRODUCTS HAVE IN COMMON as well?


CULTURAL VALUE across the border


CULTURAL VALUE at the root base


Pure CULTURAL VALUE (only meaning and sign)


But, have we all the same esteem for the same product?

Perception value, or value as (individual) experience, is the result of an individual experience of a thing of event. Because it is related to esteem, it is considered intangible.

Note: Intangible value, due to its nature, is not subject to transaction in any form, but it is transferred from one recipient to another, without any loss of ownership.


Concluding, WE HAVE DIFFERENT TYPES OF VALUE

Value, in the singular: 1- use value – value as utility; 2- economic value – value as exchange; 3- cultural value – value as meaning and sign; and 4- perception value – value as experience.

Values, in the plural: 5- religious values – values as belief system; 6- behavioural values – values as moral and ethics; (Despite the influence of those “values” in human society and economy, they are

not part of the subject of this presentation).

Jensen (2005)


WE NEED A GENERAL DEFINITION OF VALUE

Value is the absolute criteria used in any decision making process, based on the relationship between expected benefits versus potential sacrifice to be made.

Therefore, Value is the relationship between the output(s) and/or outcome(s) [expected benefits] provided by a thing or event, to an individual person or group of people, and the effort [potential sacrifice] consumed to acquire, use or make it happen.


And we need SUB-DEFINITIONS OF VALUE (1/2)

Value creation is the first time process of transformation of inputs into outputs.

Value generation is any time process of transformation of inputs into outputs based on a past value creation event.

Value adding is any time process of aggregation of one type of value to another, (i.e.: intangible to tangible).

Value improvement is any time process of changing for better an existing ratio between inputs and outputs.


AND WE NEED SUB-DEFINITIONS OF VALUE (2/2)

Value accumulation is any time process of retaining (created, generated, added, improved) value, in any form.

Value consumption is any time process of using value, through a process of consumption that destroys it, needed to keep a certain status quo.

Value destruction is any time process of eliminating existing value, by purpose or by accident, being the output of lesser or no value.


WE ALSO NEED TO FIND A VALUE CONSTRUCT MODEL

Complex

Simple

Tangible Intangible Value form

Value materializa7

on

Technology/ Produc0on

R&D/Crea0on-‐Conceptualiza0on

Culture/ Construc0on Distribu0on/

U0liza0on

(Fernandes, 2012)

Technological Innova0onn:

Cultural Innova0on:


Unpredictability, risk and sustainability

The question placed in this communication is:

“Can a product (good or service) that mainly encompass cultural value, survive profound

changes in the social and economic fields, both with deep influence on an existing culture”?


CULTURAL VALUE now a days: Meaning and sign

Prestige! Competitiveness

Class Robustness

Utility


CULTURAL VALUE AT THE MOST EXTREME LEVEL

Only the cultural environment can determine the relational value.



Cultural Value strives in isolated groups of people with economic capacity.

Cultural Value comes into danger when group attitudes change and when economic

capacity vanishes.

Empirical observation and my own entrepreneurial experience (a beauty clinic for

the middle class women) proves this right!



But, cultural value may not exist even if one tries harder.

Safrane

And, this is the message: if you do not understand cultural value, do not play the game!


More on value

In order to understand how value behaves and impacts product and business strategy and

innovation, download the following free applications, and use the models for your product assessment and

scenarios creation, from: www.telesfernandes.net

Basic DynamicMAP Assessment


More on value

Bibliography: -  "A Holistic and Cultural view of Value", AMAE - Advances in Management & Applied Economics Journal", vol.2, n.1, pp. 55-107 (2012).

-  "Value Construct towards Innovation", IJIMT - International Journal of Innovation, Management and Technology, vol. 3, no. 1, pp. 10-19, (2012).

-  “Model of Value Based Innovation", CBR - Chinese Business Review, Vol.10, N.10, pp.869-879 (2011).

-  "Business Strategic Model", IJIMT - International Journal of Innovation, Management and Technology, vol.2, n.4, pp.301-308 (2011)

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The "cultural value" side of things - a new approach to value.

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