Welcome to this blog, dedicated to exploring, understanding and creating value innovation.
In my work advising companies on customer value strategy, I find that many companies' attempts to improve customer value turn out to be too costly, ineffective or both. Sales teams are willing to offer more and more to win bloody, competitive battles. Yes, they win the business sometimes. But they do so at the expense of their margins, their cost to serve or their agility. In addition, they systematically teach their customers to ask for more giveaways - and get more - the next time.
Value innovation, as described in the book, Blue Ocean Strategy, by Renee Mauborgne and W. Chan Kim, is focused on "making the competition irrelevant by creating a leap in value for buyers, thereby opening up new and uncontested market space."
Many companies believe they must choose between either differentiation or cost reduction. BOS focuses on simultaneously improving customer value and low cost.
Innovation does not have to start as a "corporate" initiative, though often it does. Customer-facing teams, for example, are on the front lines of what matters to the customer and how they can help them drive value. Value innovation can start at the point of contact. In addition, for value innovation to really take hold in an organization, it is a huge accelerator and sustaining force if the thinking behind it is woven throughout.
This site is about inspiring and sharing solid thinking and effective action by exploring everyday examples of innovation. Along the way, we will connect with other thought leaders in innovation and organizational change.