INNOVATION VALUE CHAIN MODEL

INNOVATION INNOVATION INNOVATION INNOVATION……

Innovation is a very first word comes into marketers or management grads mind when we try to suggest someone or give recommendations. Have you ever thought of this word in depth?

Innovation means the conversion of knowledge and ideas into a benefit, which may be for commercial use or for the public good; the benefit may be new or improved products, processes or services.

If I ask you about innovative companies, products or ideas, huge number of examples will come to your mind. There is concise list of companies as per 2006 data:

Most Innovative companies of world

According to strategy,marketing gurus and Worldwide studies innovation is the key driver to the competitiveness of businesses and of nations.

If its so important for competitiveness and existence why one company’s best innovation become worst nightmare of other companies?

In Indian context we have an example of Deccan airlines tried to implement the best strategies of South West Airlines but failed badly, became highly unsuccessful and incurred huge loss.

In marketing we heard of flank defense and flank attack, its very true and right strategy to protect yourself and hit your competitor respectively . Flank Defense strategy is mainly opted by market leader to protect its weakest link from challenger company while flank attack is opted by market challengers to hit the weakest link of market leader.

Normally companies do extensive research on external environment but forget about their internal analysis, so one weak link affects the complete innovation efforts, so focus on pinpointing and strengthening your deficiencies.

A very new concept introduced by Hansen and Birkinshaw to look-over the failures in introducing innovative ideas, strategies, products etc. That is “INNOVATION VALUE CHAIN”. Innovation value chain comprises three phases: idea generation, conversion, and diffusion. Six linking tasks are performed across those phases: internal, external, and cross-unit collaboration; idea selection and development; and spread of developed ideas.

According to innovation value chain model market leader/challenger/follower before going for innovation always looks into its internal structure as per IVC, evaluate the weak link and work on it before get into the innovation.

Due to some problem, actual model picture is not uploaded so to look at the detailed description of IVC model click on the picture above.

Its very true that a strong and well developed innovation system and culture will underpin economic growth and social well-being for Queensland.