Value of Concept of Innovation Essay Example | Topics and Well Written Essays - 1000 words

Value of Concept of Innovation - Essay Example Value innovation aims at seeking new and completely different value curves. High growth companies employ an approach that offers unknown value and compete by summoning the existing conditions. For this reasons they achieve sustained high growth in both revenues and profits. On the other hand, the less successful companies take a conventional approach, that is, they strategically work towards beating their competitors. In making their competitors irrelevant, the high growth companies employ a strategic logic referred to as value innovation (Kim, 2014). Discovery of hidden demand and creation of new demands are problems that value innovations redefine. The business model canvas aids an organization in carrying out structured, solid and strategic conversations surrounding new and existing businesses. Global companies employ the canvas in the management of strategy or in creating new growth engines (Verstraete, 2011). For businesses that are starting up, the model is used in search of an appropriate business model. The business canvas model aims at helping an organization move beyond product based thinking and towards thinking based on a business model. In a bid to explain the value of the business model in discussion, Nespresso a daughter company of Nestle shall be of reference. The company utilizes the tool in their regular planning and cycles of development. It is a company affiliated with the food and beverages industry. The business canvas model is used in the creation of a blueprint of their strategy. The model provides clarity in the foundation and direction for the impending conversation. Still on strategizing, the tool is utilized for strategic planning per business unit because it provides the organization with general information on the progress of the business units. The business canvas model works as a common language across the units of the business and provides the