Evolution of the Value Innovation Process®

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The first value innovation process was published in 2005(a).   It was the result of the work of representatives from more than 40 member companies of the the Industrial Research Institute.  Richard (“Dick”) K. Lee was one of the three co-chairs on this project.  At the time he was VP Strategic Business Operations at Johns Manville.

Since then, working with companies large and small around the world (Examples include: Bekaert, Chevron, Ingersoll-Rand, P&G, Pharma Diagnostics, Spectra Logic and Sherwin Williams) Value Innovations Inc. has refined the original work into a trademarked, 10-Step process.

The Value Innovation Process:

Value-Innovation-Chart

The VIP uncovers “What” and “How” you need to Deliver Exceptional Value to the Most Important Customer in your Value Chains. Used consistently, this drives sustainable, profitable growth.  It forces company associates to think and behave differently and, as a result, your company culture changes to enable innovation.

Where does the VIP fit?

The VIP bolts onto the front end of your company’s Stage-Gate, Phase-Gate or Toll Gate Process. It is the Front End of Innovation. We recommend you review your existing new product and service development processes and determine how to best combine the VIP. You may find the need to reduce the number of steps or change the order of steps. If it accomplishes the desired result, make the changes.

Outside the Organization:

When the focus is on the Most Important Customer outside the organization, the VIP can be used to develop new strategies, new business models, new products, new services, new delivery methods, new packaging, technology roadmaps, etc.

Inside the Organization:

When the focus is on the Most Important Customer inside the organization, support functions can use the VIP to address a multitude of unmet needs in the Business Units.  Human Resources, Finance, IT,  Purchasing, etc. are groups that can all deliver greater value to the BUs by understanding what unmet need are not being met and taking out non value added work.  Here are a couple of examples:

For HR:

Increase the value delivered to the individual being appraised by a factor of 2, reduce the cycle time to complete the process by at least 50% and reduce the cost by at least 50%

For Purchasing:

Develop and provide a catalog of approved products that any associate can order without approval and processing by purchasing.   Reduce processing cost by at least 50%

Enabling Tools:

Each of the 10 Steps in the VIP is executed using a rigorous approach, facilitated by a set of enabling tools (see below).

VIP_Enabling_Tools_141226

How long does it take to complete?

Typically 10 to 12 weeks,

See how American Vanguard (AmVac) is using the VIP today:

This is a 2 minute video featuring:  Eric Wintermute (Chairman and CEO), Johann Venter  (VP Technology), Jim Lehman (VP Sales), Kyle Coleman (Product Manager) and Brent Westover (Unit Manager at AgriNorthwest Farns, a Most Important Customer).  They share how Value Innovation helped them develop a new way to deliver Vapam(TM) to chemigate crops.

video

AmVac has trained more than 25% of their full time employees from all functional areas on the Value Innovation Process.

a.  Dillon, T. A., Lee, R. K., Matheson, D., 2005. Value Innovation:  Passport to Wealth Creation, Research-Technology Management, March-April, pp 22-36.

Value Innovation Process is a registered trademark of Value Innovations, Inc.

 

Want to up your innovation game? Want to up your organization’s innovation game? Attending one of our Mastering Value Innovation Workshops is a great place to start. In 2016 we are going to change our approach. We will work with you to develop your own custom workshop that addresses your problems and you define the length and location. More information can be found in the Workshop Brochure.