Value Innovation Strategy (PowerPoint PPTX Slide Deck)

BENEFITS OF DOCUMENT

1. provides a visual guide to key elements of a value innovation strategy
2. makes it easier for consultants and professionals to key value innovation strategy concepts in their work

DESCRIPTION

This product (Value Innovation Strategy) is a 26-slide PPT PowerPoint presentation slide deck (PPTX), which you can download immediately upon purchase.

This document provides a visual guide to to enabling a value innovation strategy that aims to make the existing competition irrelevant. An established value innovation strategy approach is the Blue Ocean Strategy, first introduced by Chan Kim and Renee Mauborgne in 2005.

This document can serve as a useful resource for anyone looking to understand and implement a value innovation strategy, making it easier for consultants and professionals to apply the key concepts listed below in their work.

Contents:

1. Red vs Blue Ocean Strategy
2. Value Innovation
3. Strategy Canvas
4. Buyer Utility Map
5. Three Tiers of Noncustomers
6. Six Paths Framework
7. Four Actions Framework
8. Eliminate-Reduce-Raise-Create (ERRC) Grid
9. Pioneer Migrator Settler Map
10. Price Corridor of the Target Mass
11. Sequence of Creating a Blue Ocean
12. Five Steps to a Blue Ocean Shift
13. Three Components of Blue Ocean Shift
14. Three Components of Humanness
15. Four Hurdles to Strategy Execution
16. Fair Process
17. Tipping Point Leadership
18. Blue Ocean Vs Conventional Leadership
19. Leadership Canvas
20. Blue Ocean Leadership Grid
21. Four-Step Blue Ocean Leadership Process
22. Cost of Disengaged Employees

Source: Best Practices in BMI, Business Model Innovation, Value Innovation PowerPoint Slides: Value Innovation Strategy PowerPoint (PPTX) Presentation Slide Deck, ILMAM - Strategy & Management Consulting

PPT SLIDE DEEP DIVES

Understanding the Three Tiers of Noncustomers

This PPT slide presents a framework for understanding noncustomers through the "Three Tiers of Noncustomers" model, which is part of the Blue Ocean Strategy. It categorizes potential market segments into 3 distinct tiers: "Soon-to-be," "Refusing," and "Unexplored."

The "Current Market" is at the center, representing existing customers. The first tier, "Soon-to-be," includes those on the verge of leaving your market. These individuals are likely dissatisfied and may be looking for alternatives. Understanding their needs can help retain them and prevent churn.

The second tier, "Refusing," consists of customers who consciously choose not to engage with your offerings. They may have had negative experiences or perceive your product as misaligned with their needs. Engaging with this group can uncover valuable insights into why they reject your offerings and how to address those concerns.

The third tier, "Unexplored," encompasses noncustomers who are in distant markets. These individuals have not been considered potential customers yet, possibly due to a lack of awareness or relevance of your product. Identifying opportunities in this tier can lead to new markets and revenue streams.

The slide emphasizes that understanding these tiers can provide companies with insights into latent demand, enabling them to create strategies that tap into these segments. This approach can lead to innovative solutions and market expansion, ultimately contributing to growth. The visual representation aids in grasping the relationships between these tiers and the current market, making it a useful tool for strategic planning.

Four Actions Framework for Strategic Value Innovation

This PPT slide presents the "Four Actions Framework" as part of the Blue Ocean Strategy, a method aimed at redefining market boundaries and creating new demand. The framework is structured around 4 key actions: Eliminate, Reduce, Raise, and Create, each addressing different aspects of industry competition.

The "Eliminate" section prompts organizations to identify factors that have traditionally been the focus of competition, but may no longer add value. This encourages a critical evaluation of existing practices and can lead to cost savings and streamlined operations.

Next, the "Reduce" action focuses on determining which factors should be minimized below the industry standard. This could involve cutting back on features or services that do not significantly enhance customer satisfaction or that may be over-delivered, thus optimizing resource allocation.

The "Raise" component challenges firms to consider which factors should be elevated well above the industry norm. This could involve enhancing product quality, customer service, or innovation, positioning the company as a leader in these areas.

Finally, the "Create" action encourages the development of new factors that the industry has never offered. This is about innovation and finding unique value propositions that can attract new customers and open up new markets.

Overall, the Four Actions Framework serves as a strategic tool for organizations looking to innovate and differentiate themselves in a crowded marketplace. By systematically addressing these 4 actions, companies can create a new value curve that sets them apart from competitors.

Contrasting Red and Blue Ocean Strategies for Innovation

This PPT slide presents a comparative overview of 2 strategic approaches: Red Ocean Strategy and Blue Ocean Strategy, with a focus on Value Innovation. The left side outlines the characteristics of Red Ocean Strategy, emphasizing competition within existing market spaces. Key points include the need to compete directly, beat rivals, and exploit current demand. It highlights the inherent trade-offs between value and cost, suggesting companies must choose between differentiation or low cost.

On the right, Blue Ocean Strategy is introduced as a transformative approach. It advocates for creating uncontested market spaces where competition becomes irrelevant. The strategy encourages organizations to innovate value by capturing new demand rather than competing for existing customers. This section stresses the importance of breaking the traditional value-cost trade-off, allowing firms to pursue both differentiation and low cost simultaneously.

The central concept of Value Innovation is critical here. It is described as the simultaneous pursuit of differentiation and low cost, aiming to enhance value for both customers and the organization. This dual focus is positioned as a means to achieve sustainable growth and market leadership. The visual representation of the strategies, with arrows indicating cost and value, reinforces the idea that successful companies must navigate these dynamics effectively.

Overall, the slide serves as a strategic framework for executives considering how to position their organizations in a rapidly changing market. It suggests that embracing Blue Ocean Strategy can lead to significant opportunities for innovation and growth, moving beyond traditional competitive tactics. Understanding these strategies can guide decision-making and strategic planning for organizations seeking to redefine their market presence.

Pioneer Migrator Settler Map for Strategic Innovation

This PPT slide presents the Pioneer Migrator Settler Map, a tool designed to evaluate the innovative value of a company's offerings over time. It categorizes products or services into 3 distinct groups: Pioneers, Migrators, and Settlers. The vertical axis represents the degree of value innovation, while the horizontal axis indicates the timeline from 'Today' to 'Tomorrow.'

Pioneers are positioned at the top, signifying high value innovation. These offerings are characterized by their ability to create new markets or significantly alter existing ones. They are the forefront of innovation, driving substantial change and attracting early adopters. Migrators fall in the middle, representing value improvements. These products enhance existing offerings, but do not redefine the market. They serve as a bridge between innovation and imitation, appealing to a broader audience while still maintaining some level of differentiation.

Settlers are at the bottom, indicating value imitation. These offerings typically replicate existing solutions without introducing significant enhancements. They often cater to a more price-sensitive segment of the market, focusing on cost-efficiency rather than innovation. The arrows on the map suggest a trajectory for each category, indicating potential movement towards greater innovation over time.

Understanding where a company’s offerings fall within this map can provide critical insights into its strategic positioning and future growth opportunities. It highlights the importance of fostering innovation to avoid stagnation and remain relevant in a rapidly evolving market. This framework can guide decision-making, helping executives prioritize investments in innovation and improvement.

Leadership Focus: Customer-Centric vs. Management Priorities

This PPT slide presents a visual representation of the "Leadership Canvas" within the context of a Blue Ocean Strategy. It contrasts 2 key leadership activities: "Cut through to serve the customers" and "Please the boss." The graph illustrates how leaders allocate their time and effort across various activities, categorized by their importance.

On the vertical axis, we see the leader's time and effort categorized as high, average, or low. The horizontal axis lists key leadership activities, which include tasks such as producing data for reporting, seeking approvals, and coaching frontline personnel. The blue line, representing the focus on customer service, generally trends higher across most activities, indicating that effective leaders prioritize customer-centric actions. In contrast, the red line, which signifies efforts to please superiors, shows a more fluctuating pattern, suggesting that these activities may not consistently demand as much time or effort.

The data implies that successful leadership in a Blue Ocean context requires a shift away from traditional management practices that prioritize pleasing superiors. Instead, leaders should focus on understanding customer needs and fostering a culture that emphasizes value creation. The visual clearly delineates the importance of aligning leadership activities with customer-centric goals, which can lead to more innovative and effective organizational strategies.

This slide serves as a critical reminder for executives considering their leadership approach. It highlights the need to reassess how time and resources are allocated, urging a move towards practices that enhance customer satisfaction and drive business growth.

Contrasting Red and Blue Ocean Strategies

This PPT slide presents a comparative analysis of 2 strategic approaches: Red Ocean Strategy and Blue Ocean Strategy. The left side outlines the characteristics of Red Ocean Strategy, which focuses on competing within existing market spaces. Key points include the emphasis on beating the competition, exploiting existing demand, and making a value-cost trade-off. This approach typically involves aligning a firm's activities with a strategic choice between differentiation and low cost, suggesting a more traditional and competitive mindset.

On the right side, Blue Ocean Strategy is introduced as a contrasting approach. It advocates for creating uncontested market spaces, thereby making competition irrelevant. The focus shifts to creating and capturing new demand, which indicates a proactive rather than reactive strategy. The slide highlights the importance of breaking the value-cost trade-off, suggesting that firms can achieve differentiation while maintaining low costs. This approach encourages a holistic alignment of a firm's activities in pursuit of both differentiation and cost efficiency.

The source of the framework is attributed to Chan Kim and Renée Mauborgne, indicating a well-researched foundation. The slide effectively communicates the fundamental differences between these 2 strategies, making it clear that Blue Ocean Strategy offers a more innovative and forward-thinking perspective. For executives considering strategic options, this slide serves as a valuable reference point for understanding how to navigate market challenges and opportunities. It encourages a shift from traditional competitive tactics to a more innovative approach that seeks to redefine market boundaries.

Enhancing Customer Value through Utility Mapping

This PPT slide presents the Buyer Utility Map, a tool designed to help organizations identify how they can enhance customer value across various stages of the buyer experience cycle. The map is structured with 6 utility levels on the vertical axis, including Productivity, Simplicity, Convenience, Risk Reduction, Fun and Image, and Environmental Friendliness. Each of these levels represents a different aspect of customer needs and expectations.

The horizontal axis outlines the 6 stages of the buyer experience cycle: Purchase, Delivery, Use, Supplements, Maintenance, and Disposal. This framework allows companies to visualize where their current offerings align with customer utility levels and where gaps may exist.

Notably, the slide highlights the current industry focus, marked in red, which indicates areas where traditional offerings may fall short in delivering comprehensive value. In contrast, the blue circles represent the Blue Ocean offerings, suggesting opportunities for innovation that can meet or exceed customer expectations across multiple utility levels.

The Buyer Utility Map serves as a strategic guide for organizations looking to differentiate themselves by delivering exceptional utility. It emphasizes the importance of understanding customer needs at each stage of the buying process and aligning product or service offerings accordingly. Companies can leverage this tool to identify areas for improvement and innovation, ultimately aiming to create a more compelling value proposition that resonates with their target audience.

Leveraging Extremes for Strategic Organizational Change

This PPT slide presents a framework for "Tipping Point Leadership" within the context of the Blue Ocean Strategy. It contrasts conventional wisdom with a more innovative approach to organizational change. Conventional wisdom suggests that significant change requires extensive resources and lengthy timelines, focusing on transforming the majority of employees within a company. This traditional view implies a gradual and resource-intensive process, which may not be feasible for all organizations.

In contrast, the Tipping Point Leadership model advocates for a strategic shift that emphasizes leveraging the extremes within the organization. This approach suggests that by concentrating on key individuals, specific actions, and activities that have a disproportionate impact on overall performance, companies can achieve significant change at a lower cost and in a shorter timeframe. The slide visually represents this concept through a curve, indicating that focusing on these critical factors can lead to a more effective transformation.

The terms "Disproportionate Influence Factors" highlight the importance of identifying those elements within the organization that can drive substantial results. This perspective encourages leaders to rethink their strategies and consider how they can mobilize resources more efficiently. By focusing on the extremes rather than the mass, organizations can potentially unlock new avenues for growth and innovation. This slide serves as a compelling call to action for executives looking to implement change more effectively and efficiently.