VALUE CREATION OF TECHNOLOGIES

FOR COMPETITIVE ADVANTAGE OF

BUSINESS INDUSTRIES

Presented by :
Dr. R.K. KHANDAL

SHRIRAM INSTITUTE FOR INDUSTRIAL RESEARCH

19, UNIVERSITY ROAD, DELHI-110 007
Email : sridlhi@vsnl.com Website : www.shriraminstitute.org
 Outline of the Presentation

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
 1. Defining Value Creation

 Defining value

 Defining value creation

 Value creation

 Value creation: Concept for competitiveness

 Defining Value
Value : Definition
Keyword To do With Determines

Worth Purpose Service

Utility Affordability Demand

Price Viability or Product

Business
Cost Profit and Loss
Application
 Creates demand and serves as a driving force for development
 Varies with the product and its applications
 Important for the viability of any venture
 Defining Value Creation
Value Creation : Definition
Keyword To do With Determines

Novel Uniqueness Innovation

Modification Upgradation Value addition

Efficiency Cost reduction Improvisation

 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
Perception of the Stakeholders

Inputs Producer Consumer Regulator

 How much profitable?  Does it serve the  Meets the

Worth purpose? stipulated Norms

 Specialty Application?  Multi Utility?  Environment

Utility Impact

 Realise max. through  Best quality  Within Norms

Price technical advantage  Minimum price

 Minimum  Not Concerned  Not concerned

Cost

 Onus of value creation therefore, rests with the producer of the

product; consumer of course is the driving force!
Value Creation : Concept to Gain Competitiveness

Concept of Value Creation & Approach

Domain Parameter Approach

Product  Quality  Process Technology
(Materials)  Life cycle  Green Route

Application  Performance  Synergy

(Devices)  Safety  Control Devices

Process  Resources  Renewable

(Know-How)  Technology  Innovation

Environment  Biodegradability  Sustainability

(Ecology)  Damage Control  Preservation

 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
 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

Component People Culture Knowledge Process Technology

 Skill  Values  Research  Adaptable  Innovative

Indicators

 Experience  Discipline  Expertise  Flexible  Integrated

 Leadership  Conventions  Communi-  Reproducible Sustainable
 Capability  Methods
cation  Measurable  Diffusible
 Application
 Attitude  Beliefs  Environment State-of-the
 Training -Friendly art

 The role played by each component of value creation is

crucial as well as essential
 Value creation is necessary for growth and sustainability
 Society - Value Creation - Sustainability

Research
Education
Education Technology
Technology

VALUE
VALUE
SOCIETY
SOCIETY CREATION
CREATION

Culture Values

Conventions
SUSTAINABILITY
 Value creation is important for the growth of the society
 Societal interests must be kept in mind while achieving value
creation to ensure sustainability
 Value Creation : Steps & Growth
Resource Human Process Product Technology
Utilization Resources Controls Utilization Edge

State-of-the art

Specialty
use High end
Product
Strategy Quality
Cost-
GROWTH

Unique
effective

Efficiency
Efficiency Innovation
Performance
Supply
Chain Controls
Training Value Addition

Tie-ups Optimization
Systems

Planning

Resource Management Process Product Technology

Value 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 Technology
Value Creation
Step Ordinary Extraordinary

 Resource  Management  Alternatives

Utilization  Planning  Renewable

 Management  Regimental  Creative Approach

 Process  Optimization &  Green Route

Control
 Product  Quality & Cost  Specialty
reduction
 Technology  Incremental  Breakthrough
innovation innovation

 Value creation is necessary at every step, in all domains and by all means
 Level of value creation determines the gains: ordinary or extraordinary
 Value Creation of Technology
Technology

Inputs Process Product Applications

Value Creation Scale

 Raw materials  Conversion  Quality  Uses

efficiency

 Performance
 Renewable  By-products  Life-cycle

 Cost-
 Alternatives  Waste product  Reuse effectiveness
reduction

 Value
 Non-Hazardous  Recycle advantage

 Sustainability  Green route  Biodegradability  Safety

 Value creation scale would determine the gains

 Innovation is the key for the ultimate value creation
 Technology Innovation and Competitiveness
INNOVATION

Shift Different Next

Alternative Improved Better

Options Growth Competency

Sustainability Self Reliance Leadership

Global Competitiveness

Value Creation
 Change is important for value creation and competitiveness
 Innovation means bringing a change for sustainability
 Innovation is Not A :

 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 :
NECESSARILY NOT NECESSARILY

A New Idea Unheard before

A New Product Unseen before

A New Method Not tried before

 Creative  Education driven

 Novel  Technology driven
 Non conventional  Unknown
 Unplanned  Cannot be planned
 Instant  Accidental
 Appreciated  Diffusible
 Seed  Fruit
 Seed or fruit, innovation always creates value
 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
 Understanding Innovation Cycle
Production

Diffusion

Plant

Product

Seedling INNOVATION Marketing

Development Fruit
CYCLE

Innovation

Seed

Idea

Research
 For, value creation of technologies, the industries have to appreciate
the innovation cycle and its components
 Value Creation of Technologies
By Through With
• Technologies Take up
New Ideas • Improved technology  Promote
• Modified process  Propagate

• Sustainable raw material • Marketing

• Globally acceptable • Diffusion
New Products • Customer feedback
• Different

• Cost-effective • Effective &

Efficient
New Processes • Modified • Changed
• Alternate

• New areas • Marketing

Application • New dimensions • Promotion
• Customer feedback
• New vision

• Technical backup • New strategy

Marketing • Technical assistance • Penetration
 4. Value Creation of Technology for
Competitive Edge and Business Growth
 Value Creation - Competitive Edge - Business Growth

Business Growth

Types Achieved by value Survival Risk Factor

creation through

 Value Addition  Short-term  Competition

Incremental

 Diversification  Medium-term  Merger &

Significant
Acquisition

 Research &  Long-term  Regulatory

Substantial
Development Changes

 Innovation  Sustainable  Insignificant

All Inclusive

 The competitive edge to beat competition and to avoid risk factors for
sustainable growth comes from value creation through innovation
5. Path Forward
 Path Forward
Understanding Innovation Factors & Components
Leading to Innovation

Nurturing the Components Importance for Value Creation

of Innovation

Value Creation at every step Provides Competitiveness

Value Creation of Maximum Advantage for

Technology Business Growth

Business Growth through Key for Survival

Competitiveness
THANK YOU