Anyone can create value once.
Spot a need. Fill the need. BOOM, we’ve created value.
The problem is: it never lasts.
The value of a product or service – always erodes over time, because the act of creating value changes the environment.
It might be that we’re creating value cheaper and more effectively than someone else, so they start doing it our way. Now we have competition – and they’ve undercut us too – just to say thanks.
It might be that people’s expectations rise with the value we create. What once was valuable is now the new norm, so the perceived value has dropped.
This is why we innovate.
Innovation is about nurturing and growing the value we deliver.
And because this process often involves some degree of newness and change – people get confused.
They believe that all change is innovation.
That we “do innovation” by changing things.
But change is just a byproduct of the pursuit of value.
It’s a means, not an end.
To grow the value of something, we often have to change it. But not all change adds value, so not all change is innovation.
If we want to innovate – then we need to focus on what drives the value.
It will probably also involve change, but by following the value, it will only change as much as is strictly necessary.
Change which drives value, is innovation.
Change for its own sake, is a waste of time and money.