Value addition helps in the process of adding value to a product or service through time and creativity. Value is created when someone applies their expertise in a certain field to produce an item that is good, superior, or unique. This definition of value addition mainly focuses on applied expertise rather than being based solely on ideas or intellectual property.
The term originated from the idea that surplus items could be used to create something new with different values for other purposes besides just holding inventory. This concept has been relevant across many fields of business and industry and has been used by many companies such as Walmart, IBM, and Nike.
Also read - What is value chain?
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