Innovations are typically more evolutionary or more revolutionary. In spite of being mostly subjective in this classification, there are tools in this hack suggested to support each other in targeting the innovation ideas.
In the HACK: FOCUS LESS ON PROFIT AND MORE ON CUSTOMER VALUE one of the co-authors presented a way of getting ideas from customers as Value Management and Value Leadership as the way of getting innovative ideas to the customers. In fact, a mix of both is needed, in spite of the fact the game-changing innovations are typically more welcome: If I had asked people what they wanted, they would have said faster horses (Henry Ford).
We were thinking about how to cross-fertilise innovative ideas both from customer to the company and vice versa.
In practice we can think of tools to implement into the innovation management system like:
1. Set Challenges
We can target the innovation to the domain where we know customers expect us something new to offer or where we have a measurable problem (like quality related issues in manufacturing and services). This fueling of the challenge list seems to strengthen especially the evolutionary types of innovation.
2. Define Questions (for idea submission)
The suggestion is to include questions that innovators could follow in their thinking, like:
- Where is the customer value created by this innovation?
- Do you consider your idea evolutionary or revolutionary?
- If revolutionary, can you find any continuity with the present state or solution?
- If evolutionary, did you consider adding more disrupting aspects to your solution?
- What elements of your innovation you consider the most revolutionizing and why?
The idea behind that is that innovators could reach more advanced suggestions when taking into account also this perspective.
3. Assess Disruptiveness (and self-assess)
The innovation management system could comprise the classification scale of disruptiveness as seen by the innovation author and by all the system users. People getting through the innovation idea database could get another criteria for faster orientation. This could also serve as a feedback for innovators on their thinking on their ideas.
Value Management is about a continuing ongoing dialogue to discover what consumers value. By setting questions and posing challenges, consumers focus on a more structured and limited set of issues. This makes it easier for consumers to contribute to where the business has competences and capabilities.
Orginal draft by: Marting Kvapilik, Czech Republic.
Editing and extension by: Richard Ferrers, Melbourne
Value Management forms part of a PhD at UQ Business School (2012/13).
Key literature contributing to Value Management includes:
The Cluetrain Manifesto (2000).
Zuboff, S. and Maxmin, J. (2002). The Support Economy: Why Corporations Are Failing Individuals and the Next Episode of Capitalism
Prahalad, C.K. and Ramaswamy, V. (2004). The Future of Competition: Co-Creating Unique Value with Customers.
Vargo, S. and Lusch, R. (2004). ‘Evolving to a New Dominant Logic for Marketing’, Journal of Marketing 68, 1, 1 – 17.
Kim, W and Mauborgne, E (2005). Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant.
Vargo, S. and Lusch, R. (2008). Service-Dominant Logic: Continuing the Evolution. Journal of the Academy of Marketing Science, 36, Spring, 1-10.