Sunday, November 6, 2011

The foundation stone of value creation


How do people find out that something is valuable for them? 

Let’s look into a primal tribe. Simple examples are often helpful for deep understanding of the subject. A savage is thirsty. Water is a value for him in any case. You have some water in your house. But your water doesn’t represent any value for him because the savage doesn’t know about its existence.       

We don’t value anything before we learn about its existence.

Let’s move on. We find a sturdy stick and sharpen one of its ends. We show it to a savage. It is not a real value for him yet. Maximum that can be expected is his