CIMA E2 Syllabus A. Business models and value creation - Value creation - Notes ^{7 / 9}

on the resources and relationships needed, and the activities to be undertaken to be able to develop products and services demanded by stakeholders.

There are 5 key elements to create value for stakeholders:

1. Partners - These include the high priority stakeholders. It is important to maintain a good relationship with them, earn their trust and reward them. For example creating an environment of trust with suppliers and not paying less to a supplier who is dependent on you.

2. Resources - It is important to ensure that critical resources are available in the long term. Additionally, it must be ensured that good quality resources are available at the right time and right price in the short term.

3. Processes - Organisations need to have in place processes to turn resources into outputs as these are its products or services. Processes are effectively the steps that an organisation takes to meet its objectives and turn inputs into outputs. The processes should be high quality and efficient. 

   Improved cycle times, productivity and efficiency CAN be achieved through expert process mapping and re-engineering.

4. Activities - Processes are made of different activities. These activities should also be efficient and effective so there are no gaps or duplication in the processes

5. Outputs - This includes the attributes (design, quality and price) of the products/services. Different customers have different preferences and an organisation needs to consider these to create value for stakeholders.