1. Value Innovation Overview Delivering Exceptional Value to
the Most Important Customer in the Value Chain, all the time every
time
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. 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. 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. 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. 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. 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. 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. 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 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. 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.