This document discusses value creation of technologies for competitive advantage in business industries. It defines value and value creation, and outlines the key components responsible for value creation including people, processes, technology, knowledge and culture. It also discusses how value creation of technologies can provide competitive edges and promote business growth. The presentation emphasizes that innovation is essential for value creation, and outlines an innovation cycle from ideas to commercialization. It recommends nurturing the components of innovation to maximize value creation of technologies and ensure business competitiveness and long-term sustainable growth.

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

11. Tie-ups
Planning
GROWTH
Resource
Supply
Chain
Training
Systems
Efficiency
Strategy
Controls
Optimization
Efficiency
Product
Quality
Human
Resources
Resource
Utilization
Value Creation : Steps & Growth
Process
Controls
Product
Utilization
Technology
Edge
Performance
Value Addition
Cost-
effective
Specialty
use
Unique
Innovation
High end
State-of-the art
Management Process Product Technology
Value Creation Steps

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 :

19. Plant
INNOVATION
CYCLE
Fruit
Seed
Seedling
Idea
Product
Diffusion
Innovation
Development
Research
Marketing
Understanding Innovation Cycle
 For, value creation of technologies, the industries have to appreciate
the innovation cycle and its components
Production

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

23. 5. Path Forward

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

25. THANK YOU