Disruptiv and Value Innovation
Introduction
Many companies allow their competitors to set guidelines of their strategic thinking. They compare their strengths and weaknesses with strengths and weaknesses of their competitors. After, they begin to focus on building products that are better than the original products. This type of thinking opens the door for disruptive innovation. Disruptive innovation has proven time after time to have an advantage in developing creatively through the theories of innovation. Disruptive innovation created an advantage over the competition when a plan was developed correctly. Companies are developed with the goal of success in mind. In order to do so, these same companies must be willing to adhere to its main focus and not focus on its competitors. “One of the most striking findings of our research is that despite the profound impact of a company’s strategic logic, that logic is often not articulated. And because it goes unstated and unexamined, a company does not necessarily apply a consistent strategic logic across its businesses” (Kim & Mauborgne, 2004). Companies often lose focus of their overall goal causing failure. In today’s times, companies need to develop a strategy that keeps focus on themselves and not the competitor. Due to shared innovation, disruptive innovation has opened many doors of many different areas of strategic thinking.
Another area of strategic thinking is value innovation. Value innovation dwells on the importance of worth. Value innovation has been demonstrated in “Blue Ocean Strategy: From Theory to Practice” (W. and Mauborgne, 2005). Value innovation focuses strictly on finding the wants and needs of its customers and improving the market they have instead of the competitors and what they are presently doing, what will be done in the future, or what they have done. In order to complete this method of innovation, a company must be knowledgeable of their customers. A customer only buys what is needed and the
Many companies allow their competitors to set guidelines of their strategic thinking. They compare their strengths and weaknesses with strengths and weaknesses of their competitors. After, they begin to focus on building products that are better than the original products. This type of thinking opens the door for disruptive innovation. Disruptive innovation has proven time after time to have an advantage in developing creatively through the theories of innovation. Disruptive innovation created an advantage over the competition when a plan was developed correctly. Companies are developed with the goal of success in mind. In order to do so, these same companies must be willing to adhere to its main focus and not focus on its competitors. “One of the most striking findings of our research is that despite the profound impact of a company’s strategic logic, that logic is often not articulated. And because it goes unstated and unexamined, a company does not necessarily apply a consistent strategic logic across its businesses” (Kim & Mauborgne, 2004). Companies often lose focus of their overall goal causing failure. In today’s times, companies need to develop a strategy that keeps focus on themselves and not the competitor. Due to shared innovation, disruptive innovation has opened many doors of many different areas of strategic thinking.
Another area of strategic thinking is value innovation. Value innovation dwells on the importance of worth. Value innovation has been demonstrated in “Blue Ocean Strategy: From Theory to Practice” (W. and Mauborgne, 2005). Value innovation focuses strictly on finding the wants and needs of its customers and improving the market they have instead of the competitors and what they are presently doing, what will be done in the future, or what they have done. In order to complete this method of innovation, a company must be knowledgeable of their customers. A customer only buys what is needed and the
References: Christensen, C. M., & Overdorf, M. (1997). Meeting the Challenge of Disruptive Change. Harris, D. (2008). Creating value through innovation. Community Banker, 10-10. Retrieved July 16, 2013 from: http://search.proquest.com.library.capella.edu/docview/195163429?accountid=27965 Kim, W., & Mauborgne, R. (2004). Value Innovation: The Strategic Logic of High Growth. Proctor and Gamble Company. (2012). Proctor and Gamble Annual Report. Retrieved from http://www.proctorandgamble.com/annualreport/2012 W. Chan, K., & Mauborgne, R. (2005). Blue Ocean Strategy. Retrieved from: http://web.ebscohost.com.library.capella.edu/ehost/delivery?sid=1d98bac0-ba65-43eb-94. Witchalls, C. (2007). Case Study: Proctor and Gamble. Computers & Applied Science Complete. Retrieved July 17, 2013 from Ebscohost