Oberholzer-Gee's proposition is based on the well-known belief that human beings and businesses want to create value for themselves. His Simplified Strategy approach is focused on the following key action points:
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Identifying value drivers of the key stakeholders: customers, employees, and suppliers
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Choosing the value drivers that are worth focusing on
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Making the value drivers alive in an everyday customer, employee and supplier experience.
As a result, businesses will create more value for all the stakeholders and achieve enduring financial success. I will now focus on what Simplified Strategy means in the innovation and marketing context.
Simplified Strategy in innovation and marketing context
Oberholzer-Gee also stresses the benefits of focusing on value creation over value capture (how to make money from the value the business has created). As value-focused businesses concentrate more on customer needs and increased value creation, they frequently offer new solutions that go beyond their core offering. New products enhance value capture opportunities because they allow businesses to extend their profit pools from one offering to another. For example, Apple made a shift from computer hardware to all sorts of portable devices and apps. Understanding value creation offers plenty of opportunities for product innovation.
About consumer value creation
Five steps to take value drivers into action
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Identify value drivers, i.e., those brand and product attributes and benefits, that help consumers to accomplish their aims and living according to their values. Rank them based on consumer insights and data. Look at different consumer segments and examine how their value creation preferences differ.
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Understand how good you are compared with your key competitors: in which value drivers you can win the customer's heart, mind, and soul.
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Examine how different value drivers are connected to consumer value creation (how 1+1 is more than 2).
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Choose those bundles of value drivers that you can and want to own. This is where your resources and energy will be directed to.
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Implement your value drivers in the customer experience through new product innovation, bundling different products and services, and communication.
Easy start with Cambri’s market research tool
Example of value drivers analysis from Cambri insights and concept testing tool:
