2a1, DB 8004-01 Spring 2013
Instructor: Dr. J
I. Introduction II. Innovation Theories a. Disruptive Innovation – Sustaining, Evolutionary and Revolutionary b. Value Innovation– Red and Blue Oceans c. Compare and Contrast Theories III. Case Study d. Apple Inc. i. Disruptive Innovation ii. Value Innovation IV. Conclusion
Disruptive innovation has a proven advantage to foster creativity through innovation and the ability to cultivate a sustainable and competitive advantage over the competition when properly strategized. An important factor in determining long-term success is not just …show more content…
Kim, W., & Mauborgne, R. (1997) define value innovation as the simultaneous pursuit of radically superior value for buyers and lower costs for companies. Value innovation focuses on making the competition irrelevant by creating a leap in value for both the buyers and the company through opening up new and uncontested market space. Because value to buyers comes from the offerings utility minus its price, the assured value to the company is generated from the offering’s price minus its cost. Value innovation is achieved only when the whole system of utility, price, and cost are aligned. There are three platforms by which value innovation can take place: product, service and delivery (Kim & Mauborgne, 1997).