Value innovation is the reason that many of today’s much-loved and depended on commodities like Uber, Ipads, and 5G Networks exist. While it may not have been coined up till about a decade ago, Value Innovation has manifested itself throughout history with the advent of world-changing technologies like the printing press, the internet, and even to a certain extent, the wheel.
Unlike conventional competitive strategies that focus on matching or beating the competition, Value Innovation focuses on making the competition altogether irrelevant by creating a leap in value for buyers and your company, thus opening up new and uncontested market spaces. Therefore, it is safe to say that it is a crucial strategy for your company’s sustained survival and growth.
The purpose of Value Innovation is to remove your company from the bloodied red ocean of competition; where everyone is undercutting each other and both customers and your company end up losing out. Instead, this strategy is about looking to the horizon and approaching your business from a future-oriented point of view; finding your own blue ocean clear of any competition.
Value innovation occurs when organisational strategy eliminates and reduces aspects on which the industry currently competes, amplifies buyer value by raising essentials the industry has not offered before and in doing so creating cost savings. In the long run, costs are reduced and superior value is generated.
When you think of Value Innovation, one particular corporation naturally comes to mind, Apple. Known for taking risks when unveiling new products and ideas (removal of the audio jack, anyone?) and always going against the tide is how Apple is able to continuously innovate. Not only that, innovation and being creative is deeply embedded within the company’s culture and organisational DNA. Apple has set the bar very high with other brands desperately wanting to follow suit.
And for those who do, the ROI on Value Innovation activities include creating extra revenue for your company, time saved by better-performing employees, and more time for key personnel to focus on critical tasks that make the business more profitable. Here at Fearless, our focus is to put in place the specific KPIs needed to accurately measure the Value Innovation ROI.
Value Innovation is an unconventional strategy that brands and companies should definitely consider tapping into. Since the industrial revolution and now moving forward into the future, brands, products and services are going to continue fighting tooth and nail until they capture the hearts of consumers. There will likely always be a place for such conventional business practices in today’s markets but why not do something that will not only capture the attention of your consumer but also give them a compelling reason to remember why they chose your brand in the first place? Why not go even further by helping them to realise the best option for them is to continue coming back to you in the future? If your brand can do this successfully, then can you begin to understand the value that innovation is bringing to your company.