I've been lousy about updating my blog. I have all sorts of reason; the main being that as the economy began to melt the need for product developers went in the other direction.
Still, I read this nugget from Thomas Friedman from the NY Times this morning and wanted to blast it to the world: "even before the current financial crisis, we were already in a deep competitive hole — a long period in which too many people were making money from money, or money from flipping houses or hamburgers, and too few people were making money by making new stuff, with hard-earned science, math, biology and engineering skills."
People wonder how the current economic mess will end... I don't know. But I do know that redefinition is needed. Innovation means creating things that common people want, not serialization of exotic derivative instruments. It means creating products and services that people understand; that they value. Value means filling an organic market need: building products and services people will voluntarily pay more for than it costs to provide the product or service.
Value Innovation can and will solve this mess if people just adopt the principles. The core concept is simple, but so few people understand it so I'll repeat: Value Innovation raises value to current and non-buyers by raising and creating key elements of a new offering while lowering costs to the producer by eliminating and reducing elements that aren't as valuable. Not worthless, just not as much as their fully loaded cost to produce. I'll write another blog entry that explains this in more detail soon.
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Sunday, January 11, 2009
Value Innovation in the New Year
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4 comments:
Good insights, Michael. Nice to have you blogging again. You are absolutely right. We need to get be proactive and get innovative.
The reason many companies haven't been innovative in the past is lack of knowledge about how to go about the creative thought process. "Throwing ideas on the wall and seeing what sticks" as a brainstorming method has not been fruitful historically.
Now we have the tools and methods to create value innovation with Blue Ocean Strategy. Anyone who utilizes these tools correctly and implements passionately will improve their business. Period.
Dr. Sarah Layton
Corporate Strategy Institute
www.corporatestrategy.com
www.blueoceanstrategicplanning.com
Hi Michael.
Just pointing out something i noticed.
No AdSense on your blog?
:p
Nah, but thanks for pointing it out. I try to keep a relatively high level of quality control and AdSense, especially under the rubric of Blue Ocean Strategy, tends to pull in a lot of firms I've never heard about. Some may be high quality but no reason to risk confusing somebody on what may look like an endorsement.
"It's rare that the Visual Awakening stage isn't disquieting. I'll address what comes next -- how to navigate to a better place -- in a future post." (Wednesday, May 14, 2008. Blue Ocean Strategy: Getting Started)
I read in your post about honesty, that an apology chill the consumer.
I will not sue you. But, can you say/post/link somthing about what your promise in that post.
And, talknig about value innovation, if you can about what you say in the end of your last post (January 11, 2009)it will help too.
Thanks for what you share. But please, share more, or at least, what you say you will share.
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