1. VALUE CREATION OF TECHNOLOGIES
FOR COMPETITIVE ADVANTAGE OF
BUSINESS INDUSTRIES
SHRIRAM INSTITUTE FOR INDUSTRIAL RESEARCH
19, UNIVERSITY ROAD, DELHI-110 007
Email : sridlhi@vsnl.com Website : www.shriraminstitute.org
Presented by :
Dr. R.K. KHANDAL
2. 1. Defining value creation
2. Components responsible for value
creation
3. Value creation of technologies
4. Value creation of technology for
competitive edge and business growth
5. Path Forward
Outline of the Presentation
3. 1. Defining Value Creation
Defining value
Defining value creation
Value creation
Value creation: Concept for competitiveness
4. Defining Value
Determines
Service
Demand
Product
Profit and Loss
To do With
Purpose
Affordability
Viability or
Business
Application
Keyword
Worth
Utility
Price
Cost
Creates demand and serves as a driving force for development
Varies with the product and its applications
Important for the viability of any venture
Value : Definition
Keyword
Worth
Utility
Price
Cost
5. Defining Value Creation
Determines
Innovation
Value addition
Improvisation
To do With
Uniqueness
Upgradation
Cost reduction
Keyword
Novel
Modification
Efficiency
A novel approach always results in innovation whereas
modifications and efficient ways would bring value
addition and improvisation respectively
Value addition and improvisation are a form of value
creation
Value Creation : Definition
6. Onus of value creation therefore, rests with the producer of the
product; consumer of course is the driving force!
Perception of the Stakeholders
Inputs
How much profitable?
Value Creation
Does it serve the
purpose?
Producer Consumer Regulator
Worth
Utility
Price
Cost
Specialty Application?
Realise max. through
technical advantage
Minimum
Multi Utility?
Best quality
Minimum price
Not Concerned
Within Norms
Not concerned
Environment
Impact
Meets the
stipulated Norms
7. Parameter
Concept of Value Creation & Approach
Approach
Process Technology
Green Route
While the aim is to bring improvements without adversely affecting
the environment and ecology, the innovative approaches ensure
sustainability
Competitive advantage lasts longer if, sustainability is assured
Domain
Quality
Life cycle
Product
(Materials)
Value Creation : Concept to Gain Competitiveness
Synergy
Control Devices
Performance
Safety
Application
(Devices)
Renewable
Innovation
Resources
Technology
Process
(Know-How)
Sustainability
Preservation
Biodegradability
Damage Control
Environment
(Ecology)
8. 2. Components Responsible for Value Creation
Components Responsible for Value Creation
Society value creation - Sustainability
Value Creation: Steps and Growth
9. Components Responsible for Value Creation
People Process TechnologyKnowledgeCulture
Skill
Experience
Leadership
Capability
Attitude
Adaptable
Flexible
Reproducible
Measurable
Environment
-Friendly
Innovative
Integrated
Sustainable
Diffusible
State-of-the
art
Research
Expertise
Communi-
cation
Application
Training
Values
Discipline
Conventions
Methods
Beliefs
The role played by each component of value creation is
crucial as well as essential
Value creation is necessary for growth and sustainability
Component
Indicators
10. SOCIETY
VALUE
CREATION
Value creation is important for the growth of the society
Societal interests must be kept in mind while achieving value
creation to ensure sustainability
Research
Education
Society - Value Creation - Sustainability
Technology
SUSTAINABILITY
SOCIETY
VALUE
CREATION
Education
Culture
Technology
Conventions
Values
SUSTAINABILITY
12. 3. Value Creation of Technologies
Value creation
Technology Innovation and
Competitiveness
Innovation is not a: !
Innovation is: !
Understanding Innovation cycle
13. Ordinary
Value Creation
Extraordinary
Alternatives
Renewable
Value creation is necessary at every step, in all domains and by all means
Level of value creation determines the gains: ordinary or extraordinary
Step
Management
Planning
Resource
Utilization
Value Creation of Technology
Creative Approach Regimental Management
Green Route Optimization &
Control
Process
Specialty Quality & Cost
reduction
Product
Breakthrough
innovation
Incremental
innovation
Technology
14. Value creation scale would determine the gains
Innovation is the key for the ultimate value creation
Technology
Inputs
Conversion
efficiency
Green route
Value Creation of Technology
Quality
Biodegradability
Life-cycle
Non-Hazardous
By-products
Waste product
reduction
Process Product
Uses
Performance
Applications
Cost-
effectiveness
Safety
ValueCreationScale
Raw materials
Renewable
Alternatives
Sustainability
Value
advantage
Reuse
Recycle
15. INNOVATION
NextDifferentShift
Change is important for value creation and competitiveness
Innovation means bringing a change for sustainability
BetterImprovedAlternative
CompetencyGrowthOptions
Global Competitiveness
LeadershipSelf RelianceSustainability
Technology Innovation and Competitiveness
Value Creation
16. Tool for exploitation of resources
Short-cut
Profit driven venture
Merger and acquisition
Innovation cannot be a slave of any
authority; it is a master!
Innovation will always result in value
creation
Innovation is Not A :
17. Seed or fruit, innovation always creates value
Appreciated
A New Idea
A New Product
A New Method
Unheard before
Unseen before
Not tried before
NECESSARILY NOT NECESSARILY
Creative Education driven
Novel Technology driven
Non conventional Unknown
Unplanned Cannot be planned
Instant Accidental
Diffusible
Seed Fruit
Innovation Is :
18. An act which is so simple, yet
unassuming, so unique yet
quite familiar and so ordinary
yet extraordinary
Maximum output from minimum inputs is
the key criteria for assessing an innovation
Real innovation means “high impact with
mild force”; high level of value creation
Innovation Is :
20. By Through
Take up
Promote
Propagate
• Technologies
• Improved technology
• Modified process
With
New Products
• Sustainable raw material
• Globally acceptable
• Different
• Marketing
• Diffusion
• Customer feedback
New Processes
• Cost-effective
• Modified
• Alternate
• Effective &
Efficient
• Changed
Application
• New areas
• New dimensions
• New vision
• Marketing
• Promotion
• Customer feedback
Marketing
• Technical backup
• Technical assistance
• New strategy
• Penetration
Value Creation of Technologies
New Ideas
21. 4. Value Creation of Technology for
Competitive Edge and Business Growth
22. The competitive edge to beat competition and to avoid risk factors for
sustainable growth comes from value creation through innovation
Business Growth
Types
Value Addition
Value Creation - Competitive Edge - Business Growth
Short-term
Achieved by value
creation through
Survival
Competition
Risk Factor
Incremental
Diversification
Research &
Development
Innovation
Medium-term
Long-term
Sustainable
Regulatory
Changes
Insignificant
Merger &
Acquisition
Significant
Substantial
All Inclusive
24. Factors & Components
Leading to Innovation
Importance for Value Creation
Understanding Innovation
Nurturing the Components
of Innovation
Path Forward
Provides CompetitivenessValue Creation at every step
Maximum Advantage for
Business Growth
Value Creation of
Technology
Key for SurvivalBusiness Growth through
Competitiveness