Passive Air Cooling System and Solar Water Heater.ppt
Innovation and Entrepreneurship- Introduction.ppt
1. Module – II
Innovation and Entrepreneurship
Opportunity recognition and entry strategies
Entrepreneurship as a Style of Management
Maintaining Competitive Advantage- Use of IPR to protect Innovation
2. 14 March 2023 TCE, Madurai 2
Crafting your Value
Proposition
3. IS IS NOT
EXCLUSIVE
How well does it highlight your competitive
advantage & set you apart?
PAIN-FOCUSED
How will your product fix the customer’s
problem or improve their life?
SPECIFIC
What are the specific benefits
your target customer will receive?
DESCRIPTION
A description or your services
and passions.
INFORMATION
Information about your company,
product and service.
SLOGAN
Write some slogan or catchy
phrase for your brand.
VALUE
PROPOSITION
4. VALUE PROPOSITION BUILDER FRAMEWORK
The specific group of customer
you are targeting
Benefits minus costs, as perceived
by the customer
The product and service
mix you are selling
Substantiated credibility and
believability of your offerings
How you are offering from
and better than alternatives
How your offer delivers
clear customer value
01 02 03
06 05 04
MARKET VALUE OFFERINGS
PROOF DIFFERENTIATION BENEFITS
5. COMPONENTS OF A STRONG VALUE DIFFERENTIATION
VALUABLE
“I want” & “I need ”
DIFFERENTIATED
“No alternatives are as good”
SUBSTANTIATED
“I trust” & “I believe”
SELLER
Value Proposition
CUSTO
MER
Value Perception
DECISION TO SELL DECISION TO BUY
VALUE PERCEPTION GAP
6. CUSTOMER VALUE MAP
Poor Value
Excellent Value
Relative
Price
L
O
W
H
I
G
H
Relative Satisfaction / Quality
L O W H I G H
Company 1
Company 2
Company 3
Company 4
7. Product:
Company:
Ideal customer:
Substitutes:
GAIN CREATORS
Describe how your products and
services create customers gains
GAINS
Benefits customers expect,
desire, or would be surprised by.
PAINS
Negative emotions, undesired
costs, situations and risks
PRODUCT &
SERVICES
List of products and
services your value
proposition is built
around
JOBS
What specific customer
segment is trying to
get done
Describe how your products and services
eliminate customers pains, negative
emotions or undesired costa and situations
PAIN RELIEVERS
PRODUCT CUSTOMER
9. Innovation Rador
• There are many different ways a firm can innovate; it helps define the
innovation space according to what, who, how, and where aspects
– Change what the firm offers, in line with a traditional view of new product or
service innovation
– Changing who the customer is represents another route that involves
innovations related to customers, experiences, and value capture
– Changing how you sell to customers pertains to the processes, organizations,
and supply chains that a firm uses
– Changing where to sell to customers comprises presence, networking, and
brand innovations
• Innovation Rador
– Captures many different ways a firm can innovate; helps define the innovation
space according to what, who, how, and where
10. Offering
Develop new
products or
services Platform
Use
interchangeable
designs
Solutions
Provide a total
solution
Value capture
Change how
customers pay
Experience
Change
customer
interactions
Customer
Change
customers to
target
Processes
Change
operating
processes
Organization
Change firm
structure
Supply chain
Change supply
chain
Presence
Change where
products are sold
Networking
Interconnections
as a strength
Brand
Leverage
the brand
into new
markets
Changing
what the firm
offers
Changing who
the customer
is
Changing
how to sell to
customers
Changing
where to sell
to customers
Adapted from Sawhney, M., Wolcott, R.C., & Arroniz, I. (2006), “The 12 Different Ways for Companies to Innovate,”
MIT Sloan Management Review, Vol. 47 (3), p. 75.
13. Concept and Definition Design and Development Validation and Production Final Audit
Initial
ideas
New Product
Stage-Gate Design Review Process for Effective
Product Development
14. Repositioning Strategies
• An innovative offering can result from dramatically repositioning an existing
offering, such as removing some features or adding others, so that the total
offering appeals to a different customer segment with a “new” value
proposition
• The advantage of this strategy is that it generally does not require a new
technology or invention, and marketers thus can to take the lead in these
efforts
• Red Ocean markets—thus named to reflect the metaphor of blood in the
water—are very competitive and populated by “sharks” fighting over the
same customers
• To pursue more disruptive repositioning strategies, firms instead can seek out
Blue Ocean markets, a metaphor reflecting the blue hue of the deep ocean
waters that are far from land
15. Red Vs. Blue Ocean Strategy
14 March 2023 TCE, Madurai 15
21. Reflection
What did Cirque du Soleil Do?
1. Which of the factors that the “circus industry”
takes for granted did they eliminate?
2. Which did they reduce?
3. Which did they raise well above standard?
4. Which factors did they create that have not
existed before?
22. Case Study: Cirque du Soleil
No animals, no stars
Enchanting and more sophistical clowns
Retention of the symbolic and glamorous aspects of circus, such as the tent
and the more breathtaking aspects, such as acrobats
Creation of a hybrid between the circus and the theatre, borrowing from
Broadway shows
Original music score, driving the visual performance, lighting, and timing of the
acts
Abstract and spiritual dance, an idea derived from theater and ballet
Incorporation of more comfort, sophistication, elegance and theatrical themes
and plots (stories); this brought not only the richness of theatre but a whole
new demographic of customers
Multiple productions, giving people a reason to come to the circus more
frequently
New audiences and demographics
24. Case Study: Cirque du Soleil
The only way to beat the competition is to stop trying to beat the
competition. Cirque du Soleil created uncontested new market space
that made the competition irrelevant.
