Introducing The Value Innovation Process

The 10-Step Value Innovation Process Preview 08:55

You will learn what the Value Innovation Process is at a high level and you'll be introduced to, perhaps, some new tools:

In Step 1: What's in scope and What's out of scope?'

In Step 2: What is a Value Chain, the 3 questions and the 3 question template to identify you Most Important Customer(s).

In Step 3: What is a Value Curve? What is "As Is", "Best in Class" and "To Be?

In Step 4: What is contextual interviewing?

The Value Innovation Process can be used by start ups, entrepreneurs, small business owners, medium and large sized companies. Not-For-Profits, government agencies at the Federal, State and local level..

Anybody with a customer can use this Process and enabling tools to deliver greater value.

If you work in HR, IT or finance, your Most Important Customer is inside the organization. You can use this Process and enabling toolset to deliver exceptional value and it's probably the head of a Business Unit.

Developing the Value Chain, Using the 3 Questions & the 3 Question Template Preview 07:55

You'll learn what a Value Chain is (each buying, selling, using or specifying transaction between you and the ultimate end user of your product, software, service or offering).

Using the FoldedPak Expandos example (ExpandOS is a substitute packaging material for peanuts and bubble wrap), you'll learn how in 2004 FoldePak did not focus on their Most Important Customer and over a five year period it cost the investors $7 million.

In September, 2009 they brought in Brad Fehn, a Value Innovation Subject Matter Expert, and he looked at the Value Chain, used the 3 Questions and 3 Question Template to determine who the Most Important Customer was for Business to Business and recognized there was an opportunity in the Business to Consumer space

Developing the "As Is" and "Best in Class" Value Curves Preview 09:41

The Value Curve with Metrics is a graphical display showing the value delivered to your Most Important Customer for your current product, software or service (the "As Is" case) and "Best in Class".

We've chosen the Tesla S Sedan to showcase the Value Curve and compared the value it delivers to the owner with the BMW 7 Series.

We define Element of Performance, explain rank ordering and compare three rank ordering tools, explain how value is displayed on a low to high scale.

With "As Is' and "To Be' Value Curves that have been vetted by a group of your Most Important Customers, you know what you must do to deliver exceptional value.

The left side of the Value Curve lists the Elements of Performance in order of importance to the Most Important Customer.The first Element is the most important to the Most Important Customer.In aggregate these Elements define your product, service or offering.

The right side lists both values being delivered to the Most Important Customer for your current offering (“As Is” - if you have one) and “Best in Class” on a value scale (low on the left and high on the right). Each Element has a value.

Uncovering your Most Important Customer's Unmet Needs Preview 12:39

Contextual Interviewing is a process to uncover the unmet, unarticulated needs of your Most Important Customers.

There are three interviews, each 1h in length, carried out at different times with an interview team and 2 Most Important Customers.

The interviews each have a different focus:Divergent (Listening); Convergent (Shaping) and Convergent (Defining).

This lecture showcases Nautilus and their upright exercise bikes. Nautilus was seeing sales decline in 2Q, 2012. By using this process Nautilus uncovered the unmet needs of their Most Important Customers...regular users of Upright Bikes in their homes. The sales decline has been reversed and they are selling like hot cakes.