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New Definitions of Value
From the customer's point of view, your company
exists only to create value for them, to provide them
with results.
In the
new rapidly changing economy, the focus must be on
the way in which the nature of value is changing, involving new ways
to price goods,
innovation and
emotion.
The implication of these new forms of exchange is a transfer of power from
the producer to the customer. There are multitudes of values present in
every buyer-seller exchange: economic, informational and emotional.4
These exchanges increasingly happen so fast that there is no time to
translate them into precise monetary terms. Businesses will need to identify
these hidden values and think more accurately about their worth before
accepting the price proposed. The implications are profound. Companies will
need to think in terms of offers, which involve merging products and
services to exploit their knowledge to give customers a
value-added
experience, not just "selling them stuff."5
Value Innovation
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, researchers7
found that the answer lies in the way each group approach
strategy.
Competitive Strategies:
2 Types
Blue Ocean vs. Red
Ocean 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 paid
little attention to matching or beating their rivals. Instead, they sought
to make their competitors irrelevant through a strategic logic called
value innovation...
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Case
in Point
Google's 9
Notions of Innovation
"I used to call this 'Users, Not Money.' We
believe that if we focus on the users, the money will come. In a truly
virtual business, if you're successful, you'll be working at something
that's so necessary people will pay for it in subscription form. Or you'll
have so many users that advertisers will pay to sponsor the site," says
Marissa Mayer, a Google's Top Manager...
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Innovation Is Love
Innovation is actually a very
simple
phenomenon.
Innovation is about
Love:
do what you love to do
and love your customers...
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Case
in Point
Ten3 Business e-Coach
With customer care at heart, Ten3 Business
e-Coach creates unique customer value: It doesn't teach, it inspires. It
helps people and companies unlock their inner creative power and achieve
amazing results. That's why
Ten3 Business e-Coach and
Ten3 Mini-courses are so popular. People and companies from 100+
countries buy them.
Below are some unsolicited "Thank You!" notes that illustrate the value Ten3
Business e-Coach creates for people like you:
● " I read your webpage and
bells started ringing for me!"
–
Zachrey Helmberger, USA
● "It produces a 'bomb effect'! "
–
Mikael Henzler,
Germany
● " It is boosting my
creativity!"
–
Udaysinh Patil, India
Would you like to read more unsolicited "Thank
You!" notes? There are plenty of them
here.
Establish a Process-managed
Enterprise
First of all, you must
overcome traditional functional thinking
and obsess about the end-to-end
enterprise business processes (EBP) that create all value for
your customers...
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Value Chain Management
Making
breakthrough improvements in your
value chain requires
out
of the box,
cross-functional,
systems thinking.
You have to see the value creation process across the entire flow of work,
not just single points...
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Continuous
Improvement Firm (CIF)
Kaizen Mindset
CIF is a firm continuously
improving on
customer value due to improvements in
productivity initiated by
the members of the general work force. Productivity in CIF is broadly
defined to include all facets of product
quality
as well as output per worker. A basic operating principle of the
CIF is that improvements in product quality often produce simultaneous
reductions in costs...
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Case
in Point
Toyota
The fundamental reason for
Toyota's success in the global marketplace lies in its corporate
philosophy – the set of rules and attitudes that govern the use of
its resources. Toyota have successfully penetrated global markets
and established a world-wide presence by virtue of its
productivity. The intent
implicit in the
Toyota Production System is to stimulate people to think
constantly – a "self-running, self-improving" system. Everyone, not
just managers, can see what's happening. Every
problem prompts
why
questions.
Empowered
workers can
solve problems at a very detailed level. A lean
learning
culture permeates the entire company. Customer value creation
and
customer satisfaction results from
enterprise-wide performance...
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The Seven Dimensions of Strategic
Innovation
Core Technologies and
Competencies is the set of
internal capabilities, organizational competencies and assets that could
potentially be leveraged to deliver value to customers, including
technologies, intellectual property,
brand equity and
strategic relationships...
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Apply the 80/20 Rule
The
80/20 Principle states that 80% of your results come from 20% of your efforts
and activities and that the progress means moving resources from low-value
to high-value uses. Look through your list of ideas and circle the 20% that
will yield 80% of the results you are looking for...
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Product Innovation
Product/service innovation is the result of bringing to life a new way
to solve the customer's problem – through a
new product or service development – that benefits both the customer and
the sponsoring company.3...
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Process Innovation
Process innovations increase
bottom-line profitability, reduce costs,
improve efficiency, raise productivity, and increase employee job
satisfaction. They also delivers enhanced product or service
value to the customer...
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Customer Intimacy
– a New Way of Doing Business
Customer-intimate companies develop a new mindset –
a new way
of doing business – with new
values, new
vision,
new
strategies, 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
synergy
with customers...
More
Case
in Point
Amazon.com
New business model developed by
Amazon.com creates value for customers by offering a
synergistic combination of the following
benefits:
-
Shopping convenience
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Ease of purchase
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Speed
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Decision-enabling information
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A wide selection
-
Discounted pricing
-
Reliability of order fulfillment.
No single aspect of Amazon.com's
business
model is sufficient to create
a
sustainable competitive advantage. It is the
synergistic combination of all of these information services and
logistical processes that creates value for customers and comprise
Amazon.com's competitive advantage...
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Customer Value Proposition
Your company should deliver a particular
customer value proposition to a definable
market in order to exist.
Competition is all about value: creating it and capturing it...
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