Value Innovation

Value Innovation is the simultaneous pursuit of differentiation and low cost, creating a leap in value for both buyers and the company. The concept of Value Innovation is developed by W. Chan Kim and Renée Mauborgne and is the cornerstone of market-creating strategy. Because value to buyers comes from the offering’s utility minus its price, and because 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 is aligned.

Cost savings are made by eliminating and reducing the factors an industry competes on.
Buyer value is lifted by raising and creating elements the industry has never offered.

© Chan Kim & Renée Mauborgne. All rights reserved.

Break the value-cost trade-off by answering the following questions:

  • Which of the factors that the industry takes for granted should be eliminated?
  • Which factors should be reduced well below the industry’s standard?
  • What factors should be raised well above the industry’s standard?
  • What factors should be created that the industry has never offered?

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Blue Ocean Strategy & Shift Tools

Chan Kim and Renée Mauborgne have created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space. In their 2017 New York Times bestselling book, Blue Ocean Shift , Kim and Mauborgne share how to put these practical market-creating tools into practice to move from red to blue oceans and to do so in a way that people own and drive the process.

Learn and apply these tools and frameworks to execute successful blue ocean shifts using our fully interactive and guided platform Blue Ocean Studio.

All analytic tools © Chan Kim & Renée Mauborgne. All rights reserved.

Red Ocean vs. Blue Ocean StrategyRed Ocean vs. Blue Ocean Strategy
Value InnovationValue Innovation
Strategy CanvasStrategy Canvas
Four Actions FrameworkFour Actions Framework
ERRC GridERRC Grid
Six Paths FrameworkSix Paths Framework
Pioneer Migrator Settler MapPioneer Migrator Settler Map
Three Tiers of NoncustomersThree Tiers of Noncustomers
Sequence of Creating a Blue OceanSequence of Creating a Blue Ocean
Buyer Utility MapBuyer Utility Map
Price Corridor of the MassPrice Corridor of the Mass
Four Hurdles to Strategy ExecutionFour Hurdles to Strategy Execution
Tipping Point LeadershipTipping Point Leadership
Fair ProcessFair Process

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