Sunday, March 15, 2020

Importance of value creation to health care organisations Essays

Importance of value creation to health care organisations Essays Importance of value creation to health care organisations Paper Importance of value creation to health care organisations Paper Value creation is a corporate mantra, which was come into existence by creating reengineering and restructuring of thoughts during nineties. It is better to know the value creation, which is the first step to have growth of the organization. Coca-Cola and Lloyds brands recognize the value creation and they have made value creation drive with their growth for over a decade. Value is creation is nothing but it is exposure of the organization in different angles in general, technical with the other advantages.   The growth and size is not important for the organizations, but if the organization create value it dominate the others by means of most profitable and fast growing. The coca-cola and Lloyds are the dominant and most profitable and fastest growing players though they are not big in size and growth for their respective fields. It is one type of strategic planning to optimize the profits in a business operation. IMPORTANCE The basic steps for value creation are where you are and how to grow.   It is nothing an analysis of the organization and identifying the current position and making the steps to grow by comparing with the competitive organizations. It is enough time to observe such things and results to a make towards by all other companies whether they are general, technical or Health Care organizations. It is not specific that this strategy is applicable to only specific categories. But it is applicable to all types of categories, because the public is slowly accustoming with the importance of value creation concept and they are looking with the value of company, which was exposed by the company. If some type of companies creating value and they will be very much aware by the public, whereas other companies which are not created their value definitely be backed by the other companies. Hence the value creation is important to the Health Care organizations also. The value creation of the organization is not so easy. The organization should take the help the consultancy services that provide value creation and brand image. The health organizations should establish corporate value creation, which are linked with intangible performance such as innovation, customer relations, management capabilities, alliances, technology, brand value, employee relations and Environmental and community issues. ESSENTIAL Creation of value means innovation, production and delivery of products to the markets. Value creation is important because it relates to the achievement of business objectives and subsequent promotion of economic growth. The world is changing day-by-day and mere having the physical assets to the organization is not enough. Since the world is noticed with intellectual property rights, it is being linked with the intellectual assets and it can be called as intellectual capital. The health care organization does not produce any articles and they do not base on manufacturing and processing of articles. Hence the physical assets are invisible to the Health care organizations. The health care organizations should depend upon intellectual assets such as innovation, quality management, employee relation and quality of products and services. Effective elevation of human resources leads to intellectual capital or Human Capital. The human capital is combination knowledge and skills of individual employees as well as company values and culture. It provides the following The importance of the value creation indicates the following Value creation is a positive function of intellectual capital. It is a positive function of team productivity. It is positive function of collaboration. It is positive function of task. Increased social intellectual infrastructure will increase the level of value created. CONCLUSION When you take the example of coca cola company. If it is analyzed, the origination has only one product and wider value creation is provided. But in the case of the Health care organizations, the organizations will have so many service products i.e. so many plans such as individual packages, group packages, one year packages, five year packages, discounts, facilities providers, HMO plans, PPO plans etc. Even the organization employee will not be able to give full details of schemes offered by the organization. How the public will know the details. For only one product, the coca-cola makes such value creation, how much health care organization should provide the value creation.   Even the other business holders who are in life insurance business are also making the value creation. Hence it is essential to the Health Care organizations to provide value creation effectively in order to increase the brand image, growth of the organization and profits too. Besides, the Health care organization can use, the Value Creation Index to know the difference between the non-financial performance and Firm’s valuation. The Value Creation Index most suits to the organizations such financial services, airlines, pharmaceuticals, telecommunications and products and service sectors. It is a link between an organization’s non-financial performance and Firm’s valuation in the markets.    It is more important the creation of value in Health care organization rather than other industries, because, the services offered by Health Care Organization requires more attention and requires   more exposure