Value Creation

The core premise of scientific management is the superior role of experts. These experts design and implement cohesive, sequential processes to efficiently create new things of value. Think the production line.

In management schools, they began to talk about this sequential value creation as a Value Chain . The job of management is to manage this chain as efficiently as possible.

To manage this chain, a hierarchical model of authority was created that was referred to as "command and control". Each level of an organization worked under the the clear instructions of the level above it.

The Agile Development movement was based on a Radical Premise that each software development team had a responsibility to not only self-organize, but to deliver value, as it best it could, in a co-creative process with a customer.

By doing so, a new organic structure of value creation was created, that could be best described as a Value Network . This new paradigm, being more dynamic and flexible, was able to develop new value exponentially faster than the Value Chain model (called Waterfall model in the software industry).