Each company is created to fix friction on the market. To repair these friction, companies must acquire and accumulate capacities. The capacities come from pillars that include tools, processes and people. These three pillars are then used to organize and reorganize production factors in order to create products and services deployed on the markets, as forces, so that customers can buy, to overcome customer friction.
The way companies manage this transmutation of transformation of ideas and raw materials into products and services will determine their competitiveness on the market. Innovation occurs when they maximize the results, from the productivity lens, so that customers are better served even as the least possible use of inputs and resources. The mechanical advantage is solidly positive!
The markets reward businesses with income, as income is what companies are paid to create and publish the forces of products and services, which have the capacity to overcome the friction that customers have. When a company regularly delivers innovatively, the award increases and this means that growth occurs.
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In summary: markets have friction because customers have needs, and companies are established to create products that are special forces with a capacity to overcome these friction. To overcome their friction, customers reward companies with income. Innovative companies make this overcome brilliantly, and overtime, they are rewarded with tons of income, which allows massive growth.
In this conference, I will explain the mission of companies and the very essence of the reason why we have companies, linking market needs, innovation and growth. The live session Tekedia Mini-MBA begins on Saturday. Join us because we have seats for you here.
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