15 Stages of Value Creation
Avoid chasm confusion! Successful companies deliver the right value to the right people at the right time
Timing and luck have always played a role in the determination of business success. But the quintessence of building a long-term, distinctive and sustainable company is the ability to understand and act on the continuing need for transformation – particularly value transformation.
In other words, value creation is the continual redirection and renewal of your business processes that occurs from strategic adaptation to customer characteristics. Since customer characteristics are in constant flux, updates to value creation must continue without end.
Value creation is not a one-time event, but an ongoing state that must be maintained in a wild and challenging environment. The good news is, the 15-stages of value creation are remarkably predictable, whether your innovation is in AI, electric cars, big data, biopharmaceuticals, or any other industry.
Value as a Business Advantage
Value creation is a practical framework for predicting how your value-delivery priorities must change across the lifecycle of market adoption. This includes key product strategies and actions, new feature decisions, sales channels, pricing, messaging, and support.
Additionally, value creation is the key to sustained success for new ventures and innovators!! The technology-adoption lifecycle presents a predictable pattern of 5 adopter categories and there are 15 specific value-creation strategies that must shift as you move from one adopter category to the next.
The top question to ask is: where is your new medical, business, or life sciences solution competing on the Technology Adoption Lifecycle in 2024 … and which of the 15 specific value-creation strategies and actions will be needed to achieve your growth goals in 2025-2026?
The Power of Customer Perception
The customer’s perception is one of the most powerful techniques available for identifying and delivering exceptional value. This approach provides clear guidance for developing a differentiated offering that delivers value for both customers and end users.
The three elements that translate into the perception of optimum value are:
Affinity – Seeing the world from the customer’s point of view, and creating a product that fits them so well, that it sells itself
Reliability – Performing consistently well, in a trustworthy manner, to demonstrate the characteristics of an ideal partner
Assurance – An independent ecosystem that increases confidence and reduces the perception of risk
The Value Alignment Lifecycle takes a very different approach to revenue acceleration than most other innovation-adoption theories. Instead of focusing on persuading individuals to change, it describes change as being caused by the evolution of products and services, so they become a better fit for the value requirements of individuals and groups.
