Restoring Value
11 December 2008 Value may be an overused term in the business world. Nearly everyone, in nearly every business communication, talks about the importance of adding value to their products through service, support, or some special qualities they provide that their competitors do not. It’s enough to make one think that “value” has become a worn-out cliché, a term so overused and ill-defined that it has been emptied of any actual meaning.
When everyone is saying the exact same thing, you can be pretty confident that they’re saying nothing. When was the last time you heard someone strike out against value, or characterize their business model as one that aims to subtract value, or offer a line of value-diminished products? It’s similar to the politician who professes his belief that children are the future. What’s the alternative? Has there ever been a candidate who placed himself in the anti-children camp? Of course not. The statement is vague enough to make it impossible to counter.
But it can be demonstrated. Throughout this issue, there is a clear thread: companies that are providing value in measurable, meaningful ways.
Our 2007 World of Respect winners are shining examples of this. In both cases, the companies serve markets where illegal, counterfeit products can be found cheaply, yet instead of competing with them, the companies take the high road. They ensure that their products are reliable, high-quality chemicals, and they help to educate their customers and end-users on how to use the products safely and responsibly. This, oftentimes, requires added costs for the companies. But to them, it’s a worthwhile investment, because that cost adds value — in very real ways. It improves the health of the land and people, and it serves as an assurance that the companies focus on quality, even if it means extra costs or the loss of some business by undercutting competitors.
Value takes many forms. In our Specialty Chemicals report on new products from Momentive, the value comes in the shape of new technology that allows the company’s adjuvants to be added at formulation, rather than tank-mixed. The value is unmistakable: less handling by the user, better efficacy for the pesticide, a lessened environmental footprint, and a product worthy of a premium.
The Big 6 Report gives many examples of products in R&D that the multinationals believe will deliver enough value to justify the heavy research and regulatory investment it takes to bring a new product to market. Their businesses are built on innovation and discovery — if they can’t develop products deemed valuable by the market, they will not stay in business. While new product introductions (on the conventional agrochemical side, at least) may be coming more slowly than in the past, they are still re-inventing the market year after year with products that are constantly becoming safer, cleaner, and more effective.
Finally, there is the FCI Trade Summit. In this event, we are trying to follow the same course: Offering the most value possible for attendees and sponsors.
We know that it takes more than just saying your focus is on value. It needs to be seen in actions, in demonstrated efforts.
This year’s Trade Summit aimed to assemble key leaders from around the world, and create an environment that would be conducive to private, one-on-one meetings. Our value proposition: to make your jobs easier. To connect people in the industry in ways that would allow them to find partners, make deals, and cooperate in any ways they could to bring more value to their own customers. We feel we have gotten off to a great start, and next year’s Summit will bring even more value — real value — to the table.
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