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Value Innovation

 

  

 
   

"Value innovation is an innopreneurial way to tell customers 'We love you!'" ~ VadiK

 

  

 
   

Value Innovation is a venture that creates a leap in value for both buyers and the company.

 

  

 
 

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, researches W. Chan Kim and Renee Mauborgne from Harvard Business School found that the answer lies in the way each group approach strategy.

 

 
 

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 strategy.

The less 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 make their competitors irrelevant through a strategic logic called value innovation.

The value innovation concept provides a relevant support for questioning product/market strategies as well as underlying assumptions.

 

  

 
 

Examine radically what constitutes real value for customers by asking two fundamental questions:

① What value offering need to be introduced or increased to meet customer needs?

② What value offerings can be reduced or eliminated, because they do not constitute real value for customers?

  

 
   

Value Innovation in the Digital Economy

How and where companies should compete is rapidly changing in today's rapidly changing digital economy. Businesses must re-think how best to deliver value to customers. Innovative value propositions can create distinct competitive advantages and drive growth. At the heart of new approaches to value innovation are user engagement, social media strategies, deeper customer insight, customer experience management, and digital marketing.

 

  

 
   

Discover more in these articles:

Yang and Yin of Value Innovation

KoRe 10 Tips of Value Innovation