Value innovation frameworks for delivering superior customer responsiveness

Abstract

The purpose of this conceptual study is to find existing frameworks and underlying logic for delivering value innovation to ensure superior customer responsiveness based on theoretical conceptualization of existing value innovation models. In the past, a vast number of international companies mainly battled over increasing their market share, thus leading to business growth. Nowadays, long-lasting business success comes mainly from the creation of "blue oceans”, which entails unlocking a new market potential and delivering new growth opportunities instead of fighting competitors over market share. According to Sheehan and Vaidyanathan (2009) managers should see themselves as adventurous explorers who seek new customer demand and who aim to deliver value innovation by redefining the company’s products and services to provide new product attributes and experiences to customers which are not served by the competition at the given point in time.

The methodology of the research is based on content analysis of distinctive streams in literature on value innovation frameworks and underlying logic for delivering value innovation: theoretical conceptualization of the Six Paths Framework from head-to-head competition to blue ocean creation, the Four Actions Framework, which aims to conceive and design new bundles of value attributes, the DART Model, which fosters value co-creation, and the PERFA Framework and its practical application to ensure superior customer responsiveness.

Limitations: There are a number of additional definitions and theoretical contributions which describe the underlying logic of delivering value innovation, such as design thinking frameworks leading to design-driven value innovation, strategic innovation, strategy innovation, etc. The scope of the article is limited to an analysis of the Six Paths Framework, the Four Actions Framework, the DART Model and the PERFA Framework for delivering value innovation.

Findings: There are linkages between value innovation frameworks and underlying logic to ensure superior customer responsiveness based on theoretical conceptualization.

Theoretical contribution: The connections between value innovation frameworks and underlying logic for delivering value innovation to ensure superior customer value.

Managerial implications: The key value innovation frameworks to ensure superior customer value and underlying logic for its application can be identified and undertaken by industry managers to ensure superior customer responsiveness.

Classification: Exploratory qualitative study.