The Innovation Value Chain is an innovation process utilized by businesses, comprising a series of interconnected stages, including idea generation, development, and implementation. Each phase transforms conceptual ideas into tangible products or services by defining their features, functionalities, and specifications.
Main Benefits of the Innovation Value Chain
The Innovation Value Chain serves as a systematic framework that enables companies to evaluate and enhance their innovation performance while also guiding decision-making regarding various innovation options.
The Innovation Value Chain helps you:
- to identify areas of strength and weakness in the innovation processes,
- to anticipate potential challenges and focus on improving specific aspects of innovation,
- to allocate resources more effectively by providing insights into where investments are likely to be profitable,
- to align innovation strategies with overall business objectives and market dynamics.
Explanation of The Innovation Value Chain
The Innovation Value Chain offers a methodical and comprehensive strategy for companies to tackle innovation challenges. It presents innovation as a step-by-step process with three main phases: Idea generation, conversion, and diffusion of developed concepts.
Idea Generation: This initial stage involves conducting brainstorming sessions to generate new concepts or solutions. It highlights the origin of ideas, which may arise from within a single unit or through collaboration across units. Alternatively, companies may seek ideas from external partners.
- Internal Sourcing: This involves seeking ideas and innovations from the organization’s internal resources within a unit.
- Cross-Unit Sourcing: This entails gathering ideas and innovations from various units or divisions within the organization, leveraging collaboration across units.
- External Sourcing: Refers to obtaining ideas and innovations from external sources. Collaboration with entities outside the company is pursued.
Conversion: Once numerous good ideas have been generated, it becomes crucial to evaluate how these ideas will be transformed into revenue-generating products, services, and processes. During the conversion phase, the two main concepts are the selection of the idea and the development of the idea.
- Selection of the Idea: This involves screening and initial findings to identify the most promising concepts.
- Development of the Idea: This entails progressing from the initial idea to achieving the first tangible results.
Diffusion of Developed Concepts:
The final stage is the spread of the idea. After successful development, innovations are disseminated across the organization or introduced into the market.
How to Apply The Innovation Value Chain
To apply The Innovation Value Chain Integration to your business, FITMINDS is providing an adoption of the model that fits your company and your company’s needs. By using The Innovation Value Chain, businesses can build sustainable competitive advantages by continuously improving their innovation capabilities.
Contact us to get more information or discover your probable personalized roadmap for The Innovation Value Chain.
Additional Tips and Readings
- You can learn more about development processes with the Nadler-Tushman Congruence Model
- You can learn more about organizational change with the Kotter’s 8-Step Change Model.
- For a step-by-step strategic planning tool, you can read the ADKAR Model
- You can read 7Ps Marketing Mix to optimize your strategy.
Contact us to make informed decisions via The Innovation Value Chain.
