Capturing value is essential to ensuring the integration of an innovation on the market. This is the only way for it to find its lasting place. But what value is there to capture?
There are two essential ones: use value and market value:
- Use value is the proof that the innovation answers day-to-day needs that current solutions leave unmet.
- Market value is the proof that the innovation generates revenue for incumbent economic actors, letting them grow an existing market or enter a new one.
These two values must be analysed separately because the stakes differ. When both proofs exist, users and economic actors alike have an interest in welcoming the innovation, which simplifies market entry. The challenge then is bringing both values to maturity.
Many GAFA-style start-ups deliberately prioritise use value first (“USER FIRST”), driving massive adoption across borders. Only after that proof is solid do they raise substantial funds to secure the second proof — market value — and integrate rapidly, even if that disrupts established chains (Uber, Airbnb).
The difficulty most companies have with innovation often lies in failing to strike — or even seek — a constructive balance between use value and market value. Use value is too often seen as destructive when it should be embraced as a catalyst for transformation in uncertain contexts.
Schumpeter spoke of “creative destruction”; can we finally speak of “fecund transformation”?
With Vianeo, evaluate, select and manage a portfolio of innovative projects.
See also
Innovation is an egg: the power of stem cells in promoting innovation
