What is Value Innovation

8/13/2019 What is Value Innovation

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Arslan Iftikhar

Roll # 48


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What is Value Innovation ?

Value innovation is the cornerstone of blue ocean strategy,is the simultaneous pursuit of differentiation and low cost,

creating a leap in value for both buyers and the company.

Because value to buyers comes from the offerings utilityminus its price, and because value to the company is generated

from the offerings price minus its cost, value innovation is

achieved only when the whole system of utility, price, and cost

is aligned.


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Value Innovation


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Blue Ocean Strategy
http://www.blueoceanstrategy.com/http://www.blueoceanstrategy.com/


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Platforms of Value Innovation

1. Product

2. Service

3. Delivery


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Product Platform is the physical product.

Service Platform supports maintenance,customer services, warranties and training fordistributors and retailers.

Delivery Platform includes logistics andchannels used for the delivery of product to thecustomers.


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Case Study:

COMPAQComeback by Accessing the RealNeeds of Customers.


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History :

In 1989 , System Pro

Designed to run 5

network operatingSystem.


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In 1992they come up with a new product by

rebuilding the old one and named it ProSignia.

Achieve the Value innovation by reducing theGeneral App Compatibility which result in lower

manufacturing cost.They focused on Competitors in order to stay

successful they minimize the price performanceratio of server hardware and Bring out ProLiant

1000 .


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ProLiant 1000

Based On Twoinnovative Software's

1.Server network and make

installation error-free which assureThe reliability of product.

2. insight Manager helps the

Customer in case of overheatingBoards before they braking down.


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Case Study:

Eliminate the 1stclass service in 1984 because it

was the big source of cost generator.

They spotted opportunity in By introducing thelarge reclining sleepers seats and raise the seat

comfort in business class.


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They Compete the Competitors by giving

the value to customers

By Offering Free

transport services to

the Business class

customers on specialdesign Limo Bikes and

Limousines.


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Continued ..

In diversified companys value innovators are

pioneersin their industry. They are the powerful

source of profitable growth.

Some extremist are settlersbut they did not generallycontribute much to the companysgrowth.

The potential of migratorslies b/w the two.


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A useful exercise for a company is the effective

management team pursuing growth is to plot

the companys Current and Planned portfolio

on Pioneers-migrators-setteler map

This helps the company to predict and plan

future growth and profits.


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What is Value Innovation

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