Bugatti: Defying the definition of Value Innovation


Courtesy: AUTOCAR, UK

Kim and Mauborgne, pioneers of Blue Ocean Strategy, defined Value Innovation in a very practical way. That is, in terms of ERRC:

  • Eliminate some factors
  • Reduce the level of some factors below industry standards
  • Raise the level of some factors
  • Create totally new factors.

PCD or business process centric user interface design, which I introduced at Cognizant for competitive differentiation, perfectly fits the ERRC formula.

Even "services" of extreme excellence such as by Cirque du Soleil fit the definition.

But not Bugatti.

Writing in AUTOCAR, Steve Sutcliffe says about the Bugatti Veyron Super Sport, "What’s perhaps most amazing of all about this most amazing of cars, however, is that despite its heart-wrenching, lung-bursting performance, it is also quite incredibly civilised to drive."

Seems that with Bugatti, it's RC (or Raise and Create).

Or is there another formula this car fits into? I doubt.