Value innovation is the process of the emergence, maturation and dissemination of these technical ideas, practical application, accompanied by specific economic and social effects but also reducing cost and unnecessary aspect during the product lifecycle.
Components of the value innovation process
It consists of all phases of technological change, inventiveness (idea), innovation (invention) and diffusion (or dissemination). Main goal of value innovation is creation of new value for customers, stakeholders, employees and suppliers. Value innovation can be linked to the life cycle of the product, which consists of such stages as: introduction, growth, maturity, decline, withdrawal. Carefully watching this product life cycle, especially the first phase, i.e. the introduction of a new product to the market, we note the final stage of the innovative process of a given product. More precisely, before introducing a new product to the market, this product had to go through a certain path of evolution. Continuous success in retaining the customers drives a sustained increase in the value of the organization. Innovation can take place in product, service and delivery .
Five Stages of the value innovation process
This road consists of activities such as:
- Research - First of all we must search for new services, products, information. We must identify new business model's that create a unique value for our customers.
- Analysis and value modeling – Our idea from the first step are alanysing, the risk is recognized and assessed. The ideas are evaluated during conversations with key customers
- Decision – Thanks to step number 2 we can make the most accurate decisions, that have a small risk. The chances of positive effects are very large.
- Design - translating the requirements into a language understandable to the interested, in a suitable form for use during use or manufacturing. Our team creates new desting ideas that maximize our success to the greatest possible extent.
- Implementation - introduction of services and products to the market. It is last step that is only introduced when we are sure that the new business opportunity or model creates exceptional value for our consumers.
The importance of value innovation process
We know that innovation is very important but also very hard to achieve. First step to create innovation is invent many ideas from witch we have to choose the best ones. Only a few of them will have an impact on our further achievements. We must always remember that innovations also involve risks. What is more we should involve our entire organization in effort, everyones has their own role in making efforts to achieve the goal. The organization should use all possible sources in pursuit of innovation. Innovation must help our employees and our organization to use their full potential by striving for the basic value they are:
- responsibility – Innovation is very important element for the leaders.
- capability – Innovtion can help us built strong and capable orgaization
- possibility – Innovation are discoveries that arise through human imagination.
- opportunity – We need to use experience and our knowledge to identify and shape innovation opportunities in a way that enable us to act.
- sustainability – A sustainable futute for the organization must be created by innovation.
- inclusivity – Innovation is an internalprocess based on cooperation. Everyone has to play their part
Each of above mentioned stages adds value and improves profitability of the company. These six elements of innovation should motivate everyone to change. Innovation must be a priority for the organization. The market is changing customers are demanding a larger value, which will be adapted to their needs. Organizations that want to survive must innovate and invent new ways to create value.
- Chan Kim, W., & Mauborgne, R. (2005). Value innovation: a leap into the blue ocean. Journal of business strategy, 26(4), 22-28.
- De Cagda J. (2007) The Six Core Values of Innovation. Change This. 41(03), 1-9
- Dillon T. A., Lee R. K. & Matheson D. (2005) Value innovation: passport to wealth creation. Industrial Research Institutr, Inc. p. 22-36
- El Sawy O. A., Malhotra A., Gosain S. Young K. M.(1999) IT-intensive value innovation in the electronic economy: Insights from Marsh... MIS Quarterly 23(3) p. 305-308
- Chan Kim, W., & Mauborgne, R. (2005)
- Dillon T. A., Lee R. K. & Matheson D. (2005)
- De Cagda J. (2007)
- El Sawy O. A., Malhotra A., Gosain S. Young K. M.(1999)
Author: Justyna Tereszkiewicz