Value Innovation in Depth - Video 1
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Hi! I’m Larry Cecchini CEO of secure design. Today what I want to focus on and do a deeper dive on specifically is our fascination, our dedication, and our focus on value innovation.
In 2010 my pastor came to visit me and he was carrying this called book called “Blue Ocean Strategy” and he told me that I should read it and I kind of laughed at that. Why in the world would my pastor be telling me to read a book about strategic planning? But I took the time to look at it and read it. This book looked specifically at the most successful companies throughout history and outlined a concept called “value innovation”. For the first time it became clear to me that small companies should never focus on their competition only to do the things that the competition was doing. That in actuality and everything you did, you should work really hard to make the competition irrelevant by literally delivering a quantum leap in value to your customer. And that quantum leap in value is defined very specifically in a formula “the documented or established customer benefits that you deliver over the cost and price that you deliver them that equals value and that value is provided for everybody involved”. It’s provided for your customers. It’s provided for the end user. And it’s provided for you as a customer yourself.
The first thing that we did is we looked at everything our competitors did and everything our partners competitors did and we decided from day one that we were going to be better than them. This was actually defined by us taking several price decreases in order to hit the prices that our partners needed and the prices that the customers needed and users in order to deliver that value in the marketplace.
The second component was continually looking to add value in services that our competitors not only did not do, but literally would never even consider doing. We began looking at things like, stepping into marketing services, stepping into sales support services, stepping into deep dives, into operational services for our customers, stepping into handling disconnects with the services that we provide and providing literally unlimited customer service and by unlimited customer service the value innovation by necessity, by dictate, made the competition irrelevant. We give unlimited customer service to the end users. We give unlimited customer service to our partners. We will do anything in everything to assimilate the goals of the end user and the partner to deliver that value and what we found is that this mission permeated the entire company. Everybody in the company has a mission to deliver value innovation. Whether you are in provisioning. Whether you are in the NOC. Whether you are in marketing or sales. It's our job to deliver value and we look at everything that way. So back when my pastor came to see me in 2010 and showed me this beautiful little book called “Blue Ocean Strategy”, we literally revolutionized our company under a new paradigm. If you work with secure designs, we will work to deliver a value innovation to you as a partner but also your end users. We are in a place of value innovation because there is nobody who really does micro SMB, internet security like secure designs.
High Value Innovation - Video 2
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Retrieved from: https://www.youtube.com/watch?v=OugaxiKjdOw
Business Model Innovation - Video 3
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Have you ever wondered why hyper successful companies like Nokia or Kodak suddenly lose their edge? Or how could firms like Commodore computers, Grundig, Nakamichi, Newsweek or Polaroid possibly fail? Did they not have abundant RYD resources, top employees, and profound knowledge of their markets? Yes, but they had another thing in common: they all missed the moment when they should have let their successful path to rethink their business model. They missed out on radical innovation because they were too busy managing daily business and serving current clients instead of envisioning future opportunities. In other words: today’s success is the enemy of tomorrow's success. The innovation cycle spins faster than ever in nearly all industries. Innovation either increases the customer value of a product or service or it lowers their cost. And therefore creates a competitive advantage. Apple for instance, creates a high perceived customer value with its innovative new products, and Dell reduces its costs and working capital through build-to-order-processes. But even though its importance is undisputed there are many misconceptions about innovation. Three myths are are particularly pervasive:
- Innovation stems from ideas nobody has had before.
- Big success requires big resources.
- Innovation breakthroughs are always based on fascinating technologies.
Luckily, they are all wrong. IBM did not invent the personal computer. Apple did not invent MP3 technology. And amazon did not invent the online bookstore. Successful innovators learn and recombine, whereas the pioneers get eaten by the wolfs. Cisco had virtually non-existent R&D resources but out-innovated the largest research lab in the word, AT&T's bell labs. 14 of today’s 25 most innovative firms have innovated their business model and not just their technology. Take firms such a Google, Amazon, or Ebay, great algorithms, yes but it is the business model not just the technology that is responsible for their success. So, what exactly is a business model innovation? A business model provides answers to four questions: who is you target customer? What do you offer to the customer? how do you create the value proposition? And how do you generate revenue? And a business model innovation changes at least two of these four dimensions.
In our research we have looked at all major business model innovations in the past 50 years. They have all revolutionised one or several industries, for instance, IKEA has redefined the way we buy furniture. TomTom has transformed the navigation business, or Ebay has changed the world of trade. Yet only 10% of these business model innovations were novel and introduced new business model patterns. The other 90% merely adapted, refined or combined these patterns. For instance, innovative companies often apply creative imitation, they ask themselves: how could a business model innovation from another industry revolutionise our own industry? In total we have have identified 55 business model patterns that are responsible for all business model innovations. For example, flat rate, supermarket, rent instead of buy, experience selling, E-commerce or the razor and blade pattern. Let’s have a look at this one: since 1904, Gillette has been giving away has been giving away razors fo next to nothing, but selling its blades at obscenely high prices. Nespresso creatively imitated this pattern. Selling cheap coffee machines and expensive coffee and revolutionized the coffee industry and many other companies applied the razor and blade pattern too. Remember Apple's itunes, Amazon’s kindle, or Hewlett Packard's inkjet-printers?
Now, what do you have to do to innovate your business model? We advise you to follow four steps: initiation ideation, integration and implementation. During initiation, you analyze your current business model, again: who is you target customer? What do you offer to the customer? How do you create the value proposition? And how do you generate revenue? During ideation you confront this business model with the 55 business model innovation patterns and develop new models how would Nespresso conduct your business? Or is there a match between your product and the experience selling pattern? Challenge your basic assumptions and the dominant logic of your industry, but don’t try to reinvent the wheel, instead use analogies and learn from other industries. During integration you need to check the consistency of the business model. This is important detail work where you examine all four questions regarding organizational fit. Finally, during implantation it is time to awaken the beast. But be careful. In iterative cycles you design a business model, build a pilot, test the pilot, and return to the design phase. It is important to not only gain qualitative and quantitative data to verify or falsify your assumptions about your new business model, but also not to forget about the soft factors of innovation.
Thanks to incorrect management behaviour and organizational resistance. More than 70% of all change initiatives fail. Therefore, keep a few rules in mind: first, only implement one business model at the time. Second, clearly communicate the new business model and the need for change. Third, don’t overemphasize short term KPi’s. Innovation needs time. Fourth, get top management commitment. Without their sponsorship, business model innovation is doomed to fail and finally, overcome the not-invented-here syndrome. Got that? Let’s wrap it up then. Innovation is the key factor to defeat path dependency and stay competitive in today's economy. Yet, innovation is not necessarily about new technologies, excessive research, and development. Or about creating completely new ideas. Most of the time innovation is about learning from others and reinventing your business model, not just your technology. This can be done in a structured process of initiation, ideation, integration, and implementation. You analyze your business model, apply the 55 innovation patterns, check for inconsistencies, and start implementing carefully, keeping in mid success factors and pitfalls. Are you ready then to revolutionize your own industry? Try to creatively learn from the giants whose shoulders you are standing on. Think big and think different. Steve jobs did it so why can't you?
What is value innovation in Blue Ocean Stategy - Video 4
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Hi how are you everyone? Welcome back to my lovely channel. For your information this video was created on 14 July 2018, the 03 hour, 54 of minute and 19 of second. In this lovely day we are going to explain something. The thing is what is value innovation in Blue Ocean Strategy? In the next few seconds you will get a short information about what is value innovation in Blue Ocean Strategy hopefully will help you. Enjoy the video.
Here is the explanation about what is value innovation in Blue Ocean Strategy. Value Innovation. W. Chan Kim and Renée Mauborgne developed the concept of Value Innovation, the cornerstone of market-creating strategy. It is the simultaneous pursuit of differentiation and low cost, creating a leep in value for both buyers and the company.
Now, we will give you 20 seconds to read again the explanation by yourself so you can absurd this information. Please take your time.
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