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Showing posts from January 11, 2015

Value-capture innovation

Most companies focus their innovation efforts on value creation – investing in setting up and running R&D labs, etc.  They assume that if value is created, rewards will follow. Some of these companies may get away with "only value-creation" if they're able to sell their new offerings through existing approaches. Others need to think about value-capture innovation as well.

Stefan Michel describes: "When Netflix became a mortal threat to Blockbuster, it was easy to chalk up its victory to greater value creation ... But, the death blow came from the value-capture side. The brick-and-mortar incumbent's revenue model relied heavily on late fees. Netflix innovated a subscription model that milked higher revenue from the same tendency to be tardy – without vilifying customers in the process."

So, by value-capture innovation, we don't mean doing stuff like changing the price tag from $9.50 to $9.99. Value-capture innovation is strategic. Michel provides a c…

Grace needed for leadership

Generosity, respect, redemption, and sacrifice may sound spiritual, but they are all going to be required for leadership, said Warren Bennis, who is regarded the pioneer of the field of Leadership. In an interview with Harvard Business Review, he used the word "Grace" because he believed that it embedded those characteristics. Source: HBR October 2014