Innovation combined with value creation, yields value innovation. Value innovation refers to firms seeking to commercialize each of its inventions in such a way that the performance of all new goods/services exceed customer expectations and create new markets though the use of unique characteristics or attributes of those products or services. In other words, this is about offering radically different or greater value for customers, rather than just incremental improvements.
Numerous firms have achieved value innovation.
SolidWorks Corporation created SolidWorks 2000, a unique computer-aided-design solution for various design problems.
Callaway Golf Company’s Big Bertha golf clubs offer a fundamentally new and superior value to golfers through large head clubs that make playing golf easier and more enjoyable.
Other value innovation firms include Wal-Mart, CNN, Southwest Airlines, and IKEA.
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