Innovation Management #2
Creating Market Space
In today’s post, I am going to discuss of a technique used in Marketing and Corporate Strategy which is adoptable to Innovation Management.
This technique is called value curve analysis.
By analysing what is the function and emotion which are targeted by competitors, is possible to target new market and create space for new nieches.
This tool is very practicable, although is difficult to explain, there are plenty of example of companies using this strategy, and is widely explained by Harvard Business School.
An example is the chart provided in personal finance software in the 80s vs pen and pencil use for personal finance calculation.
the main point to describe is the there are key point into analysis:
This are the points:
Remove the points taken for granted.
Diminuish the factors below industry standard.
Increase the factors above industry standard and create factors which the industry does not offer.
The main key take aways are that is important to look at what competitors offer in the industry, look what buyers are willing to spend money on, look on substitutes in terms of products and services, target emotions and functionality, look across time horizon in following current trends.