Previously, we discussed the relationship between value creation and digital transformation (and how the two rely on each other). But how do you actually create that value which is so often intangible? In today’s post, we’ll discuss the top ways to create value and how to build value as part of your overall innovation strategy.
Ways to create value
Here are three of our top ways to create value within your business:
- Create new value - often the first thing we think of but it can also be the most complex approach as you’ll be creating something from the start. This could be entering a new market, launching a new product or service…
- Create better value – this is easier than creating new value. Creating better value revolves around improving something you already have. This could be introducing a new digital solution to improve the efficiency of a manufacturing process and quality of the product, for example
- Create more value - similar to the above but rather than only improving what you already have, you’re creating more of it. So, this could be improving process efficiency so you can deliver more output for the same input
How to build value into your innovation strategy
Step one: Be willing to break tradition
A common concern many business leaders have is whether ‘going outside of the box’ with their ideas will work for their organisation. Perhaps it’s caused by the fear of change or an unwillingness to adjust something that “has worked for years”.
Unfortunately, this leads many businesses to become stuck with their current strategies, their customer base remains stagnant and innovation runs dry. But driving new value creation strategies is what can push your business forward, expand your customer base and increase revenue.
Step two: Consider how you can provide customers with more, better or new value
Even if your customers are already happy, there’s nothing to stop them from moving to a competitor if something they’re offering catches their eye. So, consider how you can provide customers with more, better or new value - with the end-goal of making them even happier.
Start by analysing the information you already have on your customers. What do they want/expect from your business? Are you meeting their every need? How can you make interacting with your company easier for them? What needs do you expect to appear on the horizon? Can you meet those potential new needs?
Step three: Choose solutions to support your vision
Leading on from the previous point, once you know what your customers want more of and what they’d like less of, it’s time to get to the implementing side of things.
Let’s say your business relies on commerce. To make their buying process with your company much smoother, you could invest in a modern commerce platform that:
- Intuitively personalises content so customers can see offers, promotions, products and other content they might be interested in
- Integrates with your other business systems - e.g. your CRM - so if customers ever need to contact customer service, the representatives can quickly pull up the customer’s profile and provide a more seamless experience
- Makes product information management (PIM) a more efficient task - a PIM system brings all of your product-related data (e.g. images, descriptions, videos and other media) into one location so it’s easier to update, add, remove and manage that info
- Offers CMS (Content Management System) features so you can tweak your digital storefront as and when you need
Step four: Exceed market expectations
Go above and beyond what your competitors are doing and exceed customer expectations. That’s how you ensure any change or transformation you apply to your business always provides value.
Remember that customer needs come first but you should also consider the impact on your team. In other words, you also need your team’s buy-in if your innovation project is to be deemed a success!
Want to read more about value creation and how to get it right for your business?
The four steps covered above are just a flavour of what you need to know. We’ve created a guide that digs deeper into how you can successfully build a business value creation strategy and work that into your overall digital transformation project. Intrigued? Click the button below to find out more.