Value Innovation | Cyrus Capital

Value innovation, a concept developed by W. Chan Kim and Renée Mauborgne, refers to the process of creating new market space by challenging existing industry assumptions and offering a quantum leap in value to customers. This approach involves a fundamental shift in perspective, from competing within existing markets to creating new ones. The key to value innovation is to identify and eliminate unnecessary factors that the industry has traditionally competed on, and instead, focus on creating a new set of factors that will drive a new kind of competition. For example, the Cirque du Soleil's innovative approach to the circus industry, which combined circus acts with street entertainment, dance, and theater, created a new market space and disrupted the traditional circus industry. With a vibe rating of 8, value innovation has been widely adopted by companies such as Apple, Amazon, and Netflix, which have successfully disrupted their respective markets and created new value for customers. As of 2022, the concept of value innovation continues to influence business strategy and inspire new approaches to innovation and growth.