Value Innovation for strategic growth
Suppose, you pray for a son, what would you like to choose to ask for: a studious one or a sporty kid? Well, you will say why not both- then are you not praying for two kids- one kid who is studious and other who is sporty (Just kidding). You obviously pray and ask for a kid equally great in studies and sports. Well, in business language you want to hit a sweet spot.
In business, companies aim for innovation and
customer pay additional bucks to get advantage of that innovation. Some
companies aim for reducing the cost for the given product line thereby creating
higher specific value (value per unit cost).The process of creating a product
or service so that it is cost effective
as well having high value for customers is known as Value innovation.
The credit for the term goes to Mr. W. Chan Kim and Renée Mauborgne, management
professionals, who advocate that value innovation is key to searching markets
with no competitor also known as Blue Ocean and the strategy is known as blue
ocean strategy.
In whichever, field you are, try to find
innovative ideas which are cost effective also and try to find blue ocean for
your products and services. Value innovation requires a different mind-set and
a systematic way of searching for opportunities. First look for the territory
of demand, are there unaddressed demands, unsatisfied customers. Are all the
needs considered in designing a product or service contributing to customer as
value. Can you trim with no reduction in value so that cost is reduced, etc.,
ctc.
An interesting topic indeed, you may explore
further.
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