Posted in Human Resources Articles, Total Reads: 1640
, Published on 28 October 2014
Innovation is the process of thinking some new idea, process and implementation of that idea. Innovation is generally considered to be a process that is original and brings together various idea(s) in a way that they have an impact on society and puts a giant leap in the market space or society at a large.
Why Innovation needed or what is the need of innovation at first place?
Innovation is essential mainly to survive. Since we are talking from organizational aspect, innovation is essential for organizations to exist and continue steadily in the market. From business point of view, innovation is mainly done to cut cost and increase the revenues. From customers point of view, innovation may act as the USP (Unique Selling Point) . Customers are also ready to shell out more from their pockets if the innovation has added value, is well-designed and gives better service.
Why “VALUE Innovation”?
Value innovation is creation of such a new idea that creates such a immense value in the market that your competitors cease to exist. It’s the process of forgetting everything that you know and creating a new idea that surpass your competitors’ product and you get an accelerated growth in the market that your competitors are left out nowhere. Why do some companies attain high growth while others not so much in terms of revenue and profits?
The answer lies in the fact that after stagnation in the market, it becomes difficult for the companies to stay and earn profits like before due to stiff competition. The reason for this is all the companies use the same technology or idea or process to survive or to stay ahead of each other resulting in the same stagnation in the market. The less successful companies take the same strategy----the conventional approach i.e. just staying ahead of the competition. The more successful companies take the other way and modify their strategy. Instead of just staying ahead in the market, they develop a strategy which would make their competitors irrelevant and seem non-existent. Such a strategy is defined by the term which is called “Value Innovation”.
The diagram below would give a perfect insight about what Value Innovation really is :-
5S of VALUE INNOVATION
The above diagram can be termed as the 5S of value innovation.
1. STIMULATE – The new product creates such an uproar that it stimulates the market space and the competitors have no choice but to just simply look at the havoc it has created.
2. SURPASS – The main of the organization is to surpass its competitors and exist in the market profitably.
3. SURPPRISING – Customer Value is a thing which the organizations cannot ignore. Benefits – Costs = Customer Value. If the customers don’t get what they are looking for, they wouldn’t go for the product.
4. SATISFYING – Customers are always looking for products that would fulfill their expectation even if they are required to shell out more money. So organizations would have to keep it in their mind that their customers are satisfied with the products they provide to them.
5. SUPERPOSING – Superposing their competitors is one thing organizations keep on trying by way of their new offers or products. What organizations aim for is the brand name that would always linger in the mouth of the customers and they themselves become a walking brand of theirs, thereby superimposing their competitors or overtaking them.
From the above diagram, we can define it as “Value Innovation is the process of stimulating the market in a way that it creates a such a demand that it surpass your competitors product in such a way that it creates surprising customer value,as a result satisfying customer needs and thereby superposing your organization much above others which results in organizational competence and leaving behind your competitors as if they seem non-existent.”
This article has been authored by DIPTESH SADHU from IISWBM,Kolkata
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