Value Innovation
Innovation management requires much deeper whole systems, taking emergent, generative, iterative, integrative, and holistic approaches, with a clear business value stream view.
Running a purposeful organization is about generating value. "The different types of strategic value" discusses elements that contribute to a company's strategic advantage and value creation. "Strategic" value items can drive value for current users; however, they also aim to generate a unique value that sets the product apart from the competition.
Strategic Planning: Strategic planning defines the organization's purpose and establishes realistic goals, ensuring resources are focused on key priorities.
Competitive Advantage: Analyzing a company's value chain helps understand what drives its competitive advantage, which can highlight strengths and potential for innovation.
Value Innovation: This involves eliminating irrelevant factors, reducing excess factors, raising key factors that add value, and creating new features to generate demand.
Value innovation is a strategic approach that focuses on creating new market spaces by differentiating a business from its rivals. It involves reorganizing existing technologies to offer unique value, rather than relying on technological breakthroughs. This strategy aims to create a differentiated solution at a low cost for the company, the consumer, or both.
Value innovation distinguishes itself from other forms of innovation by focusing on creating new market spaces rather than competing in existing ones. It strategically reorganizes existing technologies to offer unique value, differentiating a business significantly from its rivals. Unlike typical innovation, value innovation doesn't necessarily rely on technological breakthroughs.
Other key differences:
-Focus: Value innovation aims to create new demand by providing increased value to customers, often at a lower cost, whereas other innovations might focus on improving existing products or processes.
-Competition: Value innovation seeks to make competition irrelevant by creating a "blue ocean" of uncontested market space, while other innovations often involve competing within existing market boundaries.
-Risk: Value innovation involves a different risk profile; instead of incremental improvements, it explores new value propositions that can reshape market boundaries.
Innovation management requires much deeper whole systems, taking emergent, generative, iterative, integrative, and holistic approaches, with a clear business value stream view, so that all parties can agree on the common value proposition. Business managers need to check how balanced and effective the value chain is, and gain customer insight via an in-depth understanding of the business value chain and oversight of key business processes. The goals are to run successful businesses.
