value innovation

Business strategy that involves thinking about strategy in terms of creating entirely new markets or redefining existing markets. The concept was invented by INSEAD business school academics, Korean academic W Chan Kim and American Renee Mauborgne in the late 1990s.

There are five dimensions in which value innovators challenge conventional competitors: industry assumptions - value innovators challenge and leapfrog these; strategic focus - value innovators create new markets rather than follow existing ones; customers - rather than looking for differences they look for commonalities between customers; assets and capabilities - value innovators build capabilities to fit the market rather than defining the market according to their capabilities; and product and service offerings - they offer goods and services that customers really value even if it means moving outside their established business.