Why Value Innovation?
Value Innovation is the search for new,
radically different value curves.
Why do some companies achieve sustained high
growth in both revenues and profits? In a five-year study of high-growth
companies and their less successful competitors, researches3
found that the answer lies in the way each group approach
The difference in approach was not a matter of managers choosing one
analytical tool or planning model over another. The difference was in the
companies' fundamental, implicit assumptions about
Blue Ocean vs. Red Ocean Strategy
successful companies took a conventional approach: their
strategic thinking was
dominated by the idea of
staying ahead of the competition. In stark contrast, the
high-growth companies and
market leaders paid little attention to
matching or beating their rivals. Instead, they sought to
competitors irrelevant through a strategic logic called
What is Value Innovation?
The value innovation concept provides a
relevant support for questioning product/market strategies as well as
assumptions. You must examine radically what constitutes real
value for customers by asking fundamental questions: what value offering
need to be introduced or increased to meet customer needs? what value
offerings can be reduced or eliminated, because they do not constitute
real value for customers?
Innovation Is Love
Innovation is actually a very
Innovation is about
do what you love to do
and love your customers...
Customer-Driven Innovation is not a
one-time event or a slogan, it's a philosophy and a mindset. You
should live this principle daily.
live your customers' life, watch how they use your product to learn what
works and what doesn't work. Encourage
risk taking. Involve everyone. Require every person, regardless of their
position to spend time on customer contact and services activities. Help
your employees to understand the customer's needs by involving them in
feedback after a
product launch. Ask all your employee to get on board with
customer-driven innovation. Ingrain it in your operations so deeply that is
becomes a part of DNA of your company...
Customer Intimacy – a New
Way of Doing Business
Customer-intimate companies develop a new mindset –
a new way of
doing business – with new
systems, and new structures. They are in the business of creating new
value for their customers. They discover unsuspected problems, detect
unrealized potential, and create a dynamic
Value Innovation in the Digital Economy
How and where companies should compete is
rapidly changing in an eEconomy that has compelled organizations worldwide
to re-think how best to deliver value to customers. Evolving, innovative
value propositions can drive growth and create distinct
– positions of cost leadership,
Improvement Firm (CIF)
CIF is a firm continuously improving on
customer value due
improvements in productivity
initiated by the members of the general work force...
Ask Searching Questions
Searching questions can
discover new opportunities,
uncover the roots of a problem, and
creative solutions to it. Open your mind to what is possible. Asking
searching questions starts with challenging assumptions.
Ask also your customer what they want
and find common themes in response to your questioning.
The asking of searching questions should be
done continuously by all levels of your organizations, but especially by