Presentation to HBS - MIT User and Open Innovation Workshop 2008 August 4-6, 2008 Harvard Business School, Boston, MA Online at: https://www.immagic.com/eLibrary/ARCHIVES/GENERAL/HARVARD/H080806U.pdf (p.404-407)

1. User and Open
Innovation
Workshop
4-6 August ‘08
Towards a value theory of
innovation
Richard Ferrers
University of Queensland Business School
University of Melbourne,
Centre for Global Innovation and Entrepreneurship,
Australia
www.valman.blogspot.com

2. User and Open
Innovation
Workshop
4-6 August ‘08
Project Outline
• Research Question:
– How do consumers (ie users) understand the
value in a new technology?
– Implying further questions for analysis:
• What is value?
• How does value work – the process of value?
• How does value stabilise?
• If stable, how does value de-stabilise?

3. User and Open
Innovation
Workshop
4-6 August ‘08
Key Findings
• 12 dimensions of value
– Unlimited value elements, within and value element
combinations
– Four universal: price, function, time, service/reliability
– Four social: need, duty, power, community
– Four indiv: beauty, emotion, learning, simplicity
• Process of value: includes social net, action,
attitude, consumer/innovator strategy, context
• Value strategies: explore, filter, copy, close
• Value properties: dynamic, degrades, iterating

4. User and Open
Innovation
Workshop
4-6 August ‘08
Key Implications
• An innovation fails, when it fails to create VALUE
• Strategies to increase profit, may decrease
VALUE eg price rises
• VALUE dynamic, so ongoing connection with
customers, to understand their changing needs
• VALUE key driver of technology adoption
– Replacing early/late adopters, S curve, linear
adoption process
– User innovation is Users creating more VALUE