Markets Within

Everybody (read every system) has a market within. Every action, is governed by the price determined in this marketplace. The price (read value)of a resource or action and its consequence(s) in time is determined on the basis of individual (read system) experience (read knowledge), energy (read energy), and the likely opposition to the flow of energy (read mass) of a person.(read system). It also depends upon the extent to which the various components of the system are integrated (read dimension I -- for Integration).

Thus, the value of time would vary from time to time for every individual.

This raises several issues and questions. What are they? Ask me if you wish to.

Yadav Chandna

Value of a free customer.

What is the value of a free customer? The poorest of the poor -- Does he have a value? Is money an appropriate unit f value? Is valuation the sole preserve of human beings? Is it different from other entities?

Link to an interview with Prof. Sunil Gupta of Harvard Business School at http://hbswk.hbs.edu/item/5595.html

The interviewer says: "Business people understand that not all customers are created equal—the 80-20 rule suggests that over time a small percentage of a company's customer base can generate a high percentage of its sales and profit. Models for calculating customer lifetime value are built on just such a premise.

But new research is starting to look at customers whose value is not as readily apparent, and where CLV calculations break down. In a recent working paper, Harvard Business School professor Sunil Gupta calls them "free" customers—think of buyers at an auction. Traditionally auction houses make most of their profit from fees paid by sellers; buyers don't pay fees. So although buyers are a necessary ingredient to the deal—no buyers, no sellers—their value is more difficult to quantify. To the auction house, is one buyer worth four sellers? Is one buyer worth one seller?

The answer is critical for the auction house, which must determine how to allocate marketing and other expenditures between buyers and sellers to attract new business.

As more job seekers sign on to Monster.com, more employers are willing to be paying customers for the firm.

Gupta's work provides a model for determining this value and is related to research being done by colleague Andrei Hagiu and others into the dynamics of multi-sided markets: platforms that serve two or more distinct groups of customers who value each other's participation. Just how that participation is valued is a question Gupta's research begins to answer."

Laws of Value

Anybody interested in discovering the Laws of Value?

The Concept Of Value --- Truth, as bare as it can be

The concept of value is as old as time, if not more. Wikipedia gives several contexts of value and several types of value, such as extrinsic and intrinsic, are accepted. Mckinsey & Co., came out with the concept of value cells, which has triggered this blog. Amongst friends, I had been using the term Value Kernels to distinguish from the more common usage in computers, MS Excel and other spreadsheets. Introductory writing on value cells has been done by the author here. Please wait for more stuff and leave your comments, good ass well as bad, on this blog. The bad comments shall be published first. They help us to improve.

Yadav Chandna

Links:

Anecdotal Caselets on value cell