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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/8/13/2019 What is Value Innovation
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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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