e3value user manual, first release

1.2 Innovation

If every business operates in a value network, then how can a business innovate? Innovation is changing the way you create, deliver or capture value. Businesses as well as non-profit organizations can innovate by using new technology, processes or organization structures for creating, delivering or capturing value.

But if every business is embedded in a network, then business innovation is embedded in network innovation. When a business innovates, it may use new technology, processes or organization structures in the interactions with other actors in their value network. It may select new suppliers, other partners, acquire new customers, and compete with new competitors. It may be subject to different regulations and may have to deal with new standards. This means that to implement an innovation, it must innovate its value network.

This is not a new problem. It has existed as long as businesses exist. However, in today’s world of complex value networks, high-speed communication and global logistics, innovation requires a major effort to understand your value network and to convince independent, profit-and-loss-responsible actors to go along with you. This is where e3value is useful.