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Business Innovation – Value versus Quality
Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.
There are other useful definitions in this field, for example, creativity can be defined as consisting of a number of ideas, a number of diverse ideas and a number of novel ideas.
There are distinct processes that enhance problem identification and idea generation and, similarly, distinct processes that enhance idea selection, development and commercialisation. Whilst there is no sure fire route to commercial success, these processes improve the probability that good ideas will be generated and selected and that investment in developing and commercialising those ideas will not be wasted.
Value versus Quality
Most firms attempt to add value to their products or services in order to increase sales and prestige. However, few appreciate the difference between value and quality. But by doing so, they can more finitely increase their options for adding both value and quality.
a) Quality is directly related to the product itself. A firm can increase a product's quality, but that increase may or may not be profitable. For example, Microsoft can increase the quality of its Windows operating system but that may not lead to an increase in value for the customer. This is especially true when a product reaches maturity, as options for improving the cost/performance mix begin to dwindle after years of improvement.
b) Value is the worth of the package as a whole and the relationship to the quality of each part of the package is tenuous. For example, Microsoft increased the value of the Windows package by adding Internet Explorer. Neither of the two products was optimised for quality but together they made a more valuable and irresistible offer to the customer.
These and other topics are covered in depth in the MBA dissertation on Managing Creativity & Innovation, which can be purchased (along with a Creativity and Innovation DIY Audit, Good Idea Generator Software and Power Point Presentation) from http://www.managing-creativity.com/
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You are free to reproduce this article as long as no changes are made and the author's name and site URL are retained.
Kal Bishop MBA, is a management consultant based in London, UK. He has consulted in the visual media and software industries and for clients such as Toshiba and Transport for London. He has led Improv, creativity and innovation workshops, exhibited artwork in San Francisco, Los Angeles and London and written a number of screenplays. He is a passionate traveller. He can be reached on http://www.managing-creativity.com/
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