The very goal of doing innovation is to solve problems large or small for creating multifaceted business value.
Generally speaking, innovation is about transforming great ideas to achieve their commercial value. Look at new sources of value that haven’t been tapped before, such as the rate of new product development, the rate of market share gains, the rate of employee creativity, customer satisfaction gains, the rate of sales gains, etc.
Keep innovating for discovering hidden value, refine those raw gems into the differentiated business advantage: Innovation is doing something better than it currently is to generate multifaceted value of contemporary business As the value of the firm goes beyond economic value or shareholder value, to include other forms of value such as employee value, customer value, alliance value, managerial value, and societal value, etc. Innovation management requires much deeper whole systems, taking emergent, generative, iterative, integrative, and holistic approaches, with a clear business value stream view, all parties can agree on the common value proposition.
Generally speaking, business value lies in existing customers’ satisfaction, attracting new customers, happy employees, expanded marketing positions etc. Organizations have limited resources, value management is about satisfying the expectations and the resources to achieve high performance results. Taking the effort at the leadership and innovation portfolio level to quantify value in terms of both strategic and tactical value; direct and indirect value, is the first step to crafting high-level strategic intents. It takes a systematic and disciplined approach to manage a balanced innovation portfolio with the right mix of incremental and breakthrough innovation, for maximizing business value generation.
The whole value chain needs to be aligned, engaged, refined to leverage resources effectively and improve innovation management success rate: Innovation is a process, and usually a teamwork, with diverse pathways to create differentiated business advantages. There are many human links within the innovation phases and usually implemented in teams. Businesses have to build cohesive strategy, clarify goals and assess opportunities to realign resources and investments as appropriate, consume resources efficiently; make strategic objective alignment seamlessly.
It’s important to analyze total cost, total value, and total impact of innovation portfolio investment, and calculate financial & performance indicators wisely. If there is value conflict, understand the cause and effect, set certain criteria that stakeholders agree with, and collectively, you can become more value-added, progress-oriented. The whole value chain needs to be seamlessly aligned, engaged, refined so customers and stakeholders get their fair share to improve value chain balance and effectiveness, ensuring organizations become innovation sustainable and high-competitive in the long run.
Innovative organizations provide a pathway into process optimization and business case justification to achieve visibility of innovation value: The business value plays a bigger role in determining which initiatives should take or which task needs to be addressed first by setting the right priority, or creating a business justification case. Not every business initiative can generate business value; not every investment can get high return. Some business changes could decline the value over time. For customer centric innovation: Do you have common values and a dynamic enterprise business model that takes into account initial customer investments, life cycle of customers, products, services, economical cycles, market shifts to ensure flexibility and positive results throughout ?
In forward-looking organizations, innovation is not some random efforts, but a differentiated business competency being built systematically to accelerate performance. Only time can tell how much business value a product will deliver. The in-depth predictive analysis always helps to improve visibility of innovation management. When designing and developing innovative business products or services, the business has to decide which features it believes will deliver value relative to other features in order to drive development. To generate and preserve “business value,” you need to have a very clear idea of the “product” – its life cycle, the overall “value proposition,” where it fits into the overall “product portfolio”; the wider competitive landscape and your price/business model.
Innovation is a means, not an end. If you don’t know where you want to go, you are unlikely to get there. Corporate value is a multi-dimensional concept. Purpose, values and principles are part of corporate ideology/philosophy that shapes a unique culture and a corporate brand. The very goal of doing innovation is to solve problems large or small for creating multifaceted business value; not just come up with one solution to the old or new business problem, but multiple innovative solutions to generate multilateral values, and improve organizational long term competitive advantage.