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VALUE CREATION OF TECHNOLOGIES FOR COMPETITIVE ADVANTAGE OF
BUSINESS INDUSTRIES
SHRIRAM INSTITUTE FOR INDUSTRIAL RESEARCH19, UNIVERSITY ROAD, DELHI-110 007
Email : [email protected] Website : www.shriraminstitute.org
Presented by :Dr. R.K. KHANDAL
1. Defining value creation
2. Components responsible for value creation
3. Value creation of technologies
4. Value creation of technology for competitive edge and business growth
5. Path Forward
Outline of the Presentation
1. Defining Value Creation
Defining value
Defining value creation
Value creation
Value creation: Concept for competitiveness
Defining Value
Determines
Service
Demand
Product
Profit and Loss
To do With
Purpose
Affordability
Viability or Business
Application
Keyword
Worth
Utility
Price
Cost
Creates demand and serves as a driving force for development
Varies with the product and its applications
Important for the viability of any venture
Value : Definition
Keyword
Worth
Utility
Price
Cost
Defining Value Creation
Determines
Innovation
Value addition
Improvisation
To do With
Uniqueness
Upgradation
Cost reduction
Keyword
Novel
Modification
Efficiency A novel approach always results in innovation
whereas modifications and efficient ways would bring value addition and improvisation respectively
Value addition and improvisation are a form of value creation
Value Creation : Definition
Onus of value creation therefore, rests with the producer of the product; consumer of course is the driving force!
Perception of the Stakeholders
Inputs
How much profitable?
Value Creation
Does it serve the purpose?
Producer Consumer Regulator
Worth
Utility
Price
Cost
Specialty Application?
Realise max. through technical advantage
Minimum
Multi Utility?
Best quality Minimum price
Not Concerned
Within Norms
Not concerned
Environment Impact
Meets the stipulated Norms
Parameter
Concept of Value Creation & Approach
Approach
Process Technology
Green Route
While the aim is to bring improvements without adversely affecting the environment and ecology, the innovative approaches ensure sustainability
Competitive advantage lasts longer if, sustainability is assured
Domain
Quality Life cycle
Product (Materials)
Value Creation : Concept to Gain Competitiveness
Synergy Control Devices
Performance Safety
Application(Devices)
Renewable Innovation
Resources Technology
Process(Know-How)
Sustainability Preservation
Biodegradability
Damage Control
Environment(Ecology)
2. Components Responsible for Value Creation
Components Responsible for Value Creation
Society value creation - Sustainability
Value Creation: Steps and Growth �
Components Responsible for Value Creation
People Process Technology
Knowledge
Culture
Skill
Experience
Leadership
Capability
Attitude
Adaptable
Flexible
Reproducible
Measurable
Environment-Friendly
Innovative
Integrated
Sustainable
Diffusible
State-of-the art
Research
Expertise
Communi-cation
Application
Training
Values
Discipline
Conventions
Methods
Beliefs
The role played by each component of value creation is crucial as well as essential
Value creation is necessary for growth and sustainability
Component
Ind
icato
rs
SOCIETYVALUE
CREATION
Value creation is important for the growth of the society Societal interests must be kept in mind while achieving
value creation to ensure sustainability
Research
Education
Society - Value Creation - Sustainability
Technology
SUSTAINABILITY
SOCIETYVALUE
CREATION
Education
Culture
Technology
Conventions
Values
SUSTAINABILITY
Tie-ups
Planning
GR
OW
TH
Resource
Supply Chain
Training
Systems
Efficiency
Strategy
Controls
Optimization
Efficiency
Product Quality
Human Resources
Resource Utilization
Value Creation : Steps & GrowthProcess Controls
Product Utilization
Technology Edge
Performance
Value Addition
Cost-effective
Specialty use
Unique
Innovation
High end
State-of-the art
Management
Process Product TechnologyValue Creation Steps
3. Value Creation of Technologies
Value creation
Technology Innovation and Competitiveness
Innovation is not a: !
Innovation is: !
Understanding Innovation cycle
Value creation of technologies
Ordinary
Value Creation
Extraordinary
Alternatives Renewable
Value creation is necessary at every step, in all domains and by all means
Level of value creation determines the gains: ordinary or extraordinary
Step
Management Planning
Resource Utilization
Value Creation of Technology
Creative Approach
Regimental Management
Green Route Optimization & Control
Process
Specialty Quality & Cost reduction
Product
Breakthrough innovation
Incremental innovation
Technology
Value creation scale would determine the gains Innovation is the key for the ultimate value creation
Technology
Inputs
Conversion efficiency
Green route
Value Creation of Technology
Quality
Biodegradability
Life-cycle
Non-Hazardous
By-products
Waste product reduction
Process Product
Uses
Performance
Applications
Cost-effectiveness
Safety
Valu
e C
reatio
n S
cale
Raw materials
Renewable
Alternatives
Sustainability
Value advantage
Reuse
Recycle
INNOVATION
NextDifferentShift
Change is important for value creation and competitiveness
Innovation means bringing a change for sustainability
BetterImprovedAlternative
Competency
GrowthOptions
Global Competitiveness
LeadershipSelf RelianceSustainability
Technology Innovation and Competitiveness
Value Creation
Tool for exploitation of resources Short-cut Profit driven venture Merger and acquisition
Innovation cannot be a slave of any authority; it is a master!
Innovation will always result in value creation
Innovation is Not A :
Seed or fruit, innovation always creates value
Appreciated
A New Idea
A New Product
A New Method
Unheard before
Unseen before
Not tried before
NECESSARILY NOT NECESSARILY
Creative Education driven Novel Technology driven
Non conventional
Unknown Unplanned Cannot be planned
Instant Accidental Diffusible
Seed Fruit
Innovation Is :
An act which is so simple,
yet unassuming, so unique
yet quite familiar and so
ordinary yet extraordinary
Maximum output from minimum inputs is the key criteria for assessing an innovation
Real innovation means “high impact with mild force”; high level of value creation
Innovation Is :
Plant
INNOVATION CYCLE
Fruit
Seed
Seedling
Idea
Product
Diffusion
Innovation
Development
Research
Marketing
Understanding Innovation Cycle
For, value creation of technologies, the industries have to appreciate the innovation cycle and its components
Production
By Through
Take up Promote Propagate
• Technologies • Improved technology• Modified process
With
New Products• Sustainable raw
material• Globally acceptable• Different
• Marketing• Diffusion• Customer
feedback
New Processes• Cost-effective• Modified• Alternate
• Effective & Efficient
• Changed
Application• New areas• New dimensions• New vision
• Marketing• Promotion• Customer
feedback
Marketing• Technical backup• Technical assistance
• New strategy• Penetration
Value Creation of Technologies
New Ideas
4. Value Creation of Technology for Competitive Edge and Business
Growth
The competitive edge to beat competition and to avoid risk factors for sustainable growth comes from value creation through innovation
Business Growth
Types
Value Addition
Value Creation - Competitive Edge - Business Growth
Short-term
Achieved by value creation
through
Survival
Competition
Risk Factor
Incremental
Diversification
Research & Development
Innovation
Medium-term
Long-term
Sustainable
Regulatory Changes
Insignificant
Merger & AcquisitionSignificant
Substantial
All Inclusive
5. Path Forward
Factors & Components Leading to Innovation
Importance for Value Creation
Understanding Innovation
Nurturing the Components of Innovation
Path Forward
Provides CompetitivenessValue Creation at every step
Maximum Advantage for Business Growth
Value Creation of Technology
Key for SurvivalBusiness Growth through Competitiveness
THANK YOU