1. 1. Value Innovation Overview Delivering Exceptional Value to the Most Important Customer in the Value Chain, all the time every time
2. 2. Aknowledgement Concepts discussed orginate from materials obtained from Value Innovation Inc. I participated in two training sessions with Dick Lee at Value Innovation inc. I have also led and participated in a number of value invovation projects
3. 3. Value Innovation Pratical Application The Value Innovation process can be applied to any business problem New product development Product improvement Improved customer service Identify new unmet market needs
4. 4. 10 Steps of The Value Innovation Process 1. Define project mission and objectives 2. Define value chain and identify Most Important Customer 3. Developas is and best in class value curve 4. Uncover the Most Important Customer unmet needs 5. Develop to be value curve 6. Review to be value curve with Most Important Customers 7. Modify to be value curve 8. Define value proposition 9. Determine how to deliver the what 10.Confirm with Most Important Customers that the How is compelling
5. 5. 10 Steps of The Value Innovation Process Defining the objective of the Value Innovation project is key to the utimate success of the project. Many people use markert research as a way to validate an assumption or support a existing idea. In value innovation the questions asked in the research are more open ended: What problem needs to be solved that the most important customer will value What additional service will the most important customer value What product innovation will drive sales Etc Value Innovation is driven by identifing customer needs and creating solutions Define project mission and objectives
6. 6. 10 Steps of The Value Innovation Process Defining the value chain is simply identifing each step between the orginal provider and the end user Detailed annalysis of the value chain will identify key companies and functions that are important in getting the product and services to the most important customer After the value chain is fully detailed the Most Important Customer can be identified by answer three questions If there is a problem who has to fix the problem? Who stands to lose the most finacially of there is a problem with the solution? Who is most likely to recognize the value of the offering? The most important customer is not always obvious especally if the team has a preconcieved idea of who they want the Most Important Customer to be. The project can be seriously compromised if the wrong customer is targeted Define value chain and identify Most Important Customer
7. 7. 10 Steps of The Value Innovation Process Developas is and best in class value curve Rank Elements of Peformance Low Value to MIC High 1 Element 1 2 Element 2 3 Element 3 4 Element 4 5 Element 5 As Is Best in Class Elements of performance = measurable capability of a Charateristic of the product of service list in rank of performance Elements of performance are vetted by the most imporatnt customer and rank and value is confirmed.
8. 8. 10 Steps of The Value Innovation Process Uncover the Most Important Customer unmet needs Contextual interviewing with most important customers Confirm elements of performance and rank Confirm metrics Uncover unmet most important customer needs In my experience 100% of the time Most important customers will reshape the value curves
9. 9. 10 Steps of The Value Innovation Process Develop to be value curve Review to be value cureve with MIC Rank Elements of Peformance Low Value to MIC High 1 Element 4 2 Element 2 3 Element 5 4 Element 1 5 Element 3 As Is To be Results of contextual interviews are reviewed and to be value curve are develveloped To be value cureve confirmed in a second round of contextual interviews
10. 10. 10 Steps of The Value Innovation Process Define Value Proposition Determine How Value Proposition will be Delivered After two rounds of contextual interviews are completed a number of opportunites/solutions will emerge that can be fully developed. It hs been my experience that the opportunites/solutions will not likely have been identified intrnally
11. 11. 10 Steps of The Value Innovation Process Confirm with MIC that the How is complelling Final round of contextual interview will confirm the solutions will be of value to Most Important Customers High value solutions can be developed into projects. The Value Innovation Process can identify high value solution with confidence to ensure that exceptional value is delivered to the Most Important Customer in the value chain, all the time, every time.