GEIB M13L3V5
Summary
The video discusses how areas like schooling, policing, and the military, managed by the government sector, focus on high-value creation with limited opportunities for value capture. It explains the different organizational approaches to value creation and capture, highlighting sustainable companies, traditional businesses, and social ventures. Commercial giants such as Microsoft, Google, Facebook, and Apple prioritize value capture through charging for services, while social ventures and not-for-profits aim to maximize value creation alongside sustainability. Additionally, it touches on the lack of value capture in public sector activities and the focus on value capture without creation in organized crime and Ponzi schemes.
Government Sector and High-Value Creation
Areas with high-value creation and limited opportunities for appropriating value are often managed by the government sector, such as schooling, policing, the military, and prisons.
Government Policies and Programs
Governments tend to adopt policies and programs that impact society as a whole, potentially lacking agility compared to other organizations.
Organizational Landscape
Different types of organizations are graphed based on value creation and capture. Sustainable companies create value for society and profit. Traditional commercial businesses focus on value capture to stay in business. Social ventures prioritize value creation but also aim to ensure business sustainability.
Commercial Businesses
Companies like Microsoft, Google, Facebook, and Apple identify challenges, solve them, and charge for their services, falling into the category of commercial businesses.
Social Ventures and Hybrid Organizations
Social ventures and hybrid organizations maximize value creation while ensuring enough value capture to sustain their operations, often choosing to organize as not-for-profits.
Limited Opportunity for Value Capture
Some activities, like policy and big projects in the public sector, have limited to no opportunity for value capture as they do not operate in true markets.
Organized Crime and Ponzi Schemes
In the low-value creation but high-value capture segment, organized crime and Ponzi schemes focus on value capture without creating value.
FAQ
Q: What are some examples of areas managed by the government sector with limited opportunities for appropriating value?
A: Schooling, policing, the military, and prisons are examples of areas managed by the government sector with limited opportunities for appropriating value.
Q: How do sustainable companies balance value creation and profit?
A: Sustainable companies create value for society and profit at the same time.
Q: What is the difference between traditional commercial businesses and social ventures?
A: Traditional commercial businesses focus on value capture, while social ventures prioritize value creation and aim to ensure business sustainability.
Q: Can you give examples of companies falling into the category of commercial businesses?
A: Companies like Microsoft, Google, Facebook, and Apple are examples of commercial businesses that identify challenges, solve them, and charge for their services.
Q: How do social ventures and hybrid organizations maximize value creation and capture?
A: Social ventures and hybrid organizations maximize value creation while ensuring enough value capture to sustain their operations, often choosing to organize as not-for-profits.
Q: What are examples of activities in the public sector that have limited to no opportunity for value capture?
A: Some activities, like policy and big projects in the public sector, have limited to no opportunity for value capture as they do not operate in true markets.
Q: What do organized crime and Ponzi schemes focus on in terms of value creation and capture?
A: Organized crime and Ponzi schemes focus on value capture without creating value, falling into the low-value creation but high-value capture segment.
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