Value Creation

The term "value creation" is used in association with value reporting and human capital and human development debates, as one of many issues in economic intangibles.

"Value creation is the process described in value reporting. One must believe in both the reported metrics and the strategy or process by which the asserted or "reported" value is being assessed. One must also believe in the integrity of the management who is responsible for controlling, and the accountants who are responsible for auditing, to accept that any "value" has been "created".

In the public sector value creation is usually referred to as creating or maintaining "well-being".

Often, marketing and corporate reputation play a significant role in this acceptance. Thus the perception of actual value creation may well be simply one created by "spin". The term "innovation" is often employed in the less rigorous analyses, typically by promoters of some scheme or other that claims to improve the overall corporate value creation effectiveness or "productivity". These have little credibility.

However, the once-controversial assertion that intangibles play the major role in value creation is now more or less an unchallenged concept, or at least, it is accepted that it is the area that requires the most study, and is most expensive to get room. The so-called "dotcom boom" was an exercise in many failed models of value creation, and one that has left investors burned and wary."

- from hubley.org cite value_creation, this portion released for fair dealing or for re-incorporation in definitions under CC-by-nc-sa.