Business Innovation - Value versus Quality

Creativity can be defined as problem identificationMicrosoft can increase the quality of its Windows
and idea generation whilst innovation can be definedoperating system but that may not lead to an
as idea selection, development and commercialisation.increase in value for the customer. This is especially
There are other useful definitions in this field, fortrue when a product reaches maturity, as options for
example, creativity can be defined as consisting of aimproving the cost/performance mix begin to dwindle
number of ideas, a number of diverse ideas and aafter years of improvement.b) Value is the worth of
number of novel ideas.the package as a whole and the relationship to the
There are distinct processes that enhance problemquality of each part of the package is tenuous. For
identification and idea generation and, similarly, distinctexample, Microsoft increased the value of the
processes that enhance idea selection, developmentWindows package by adding Internet Explorer.
and commercialisation. Whilst there is no sure fireNeither of the two products was optimised for
route to commercial success, these processesquality but together they made a more valuable and
improve the probability that good ideas will beirresistible offer to the customer.
generated and selected and that investment inThese and other topics are covered in depth in the
developing and commercialising those ideas will not beMBA dissertation on Managing Creativity &
wasted.Innovation, which can be purchased (along with a
Value versus QualityCreativity and Innovation DIY Audit, Good Idea
Most firms attempt to add value to their products orGenerator Software and Power Point Presentation)
services in order to increase sales and prestige.from
However, few appreciate the difference betweenYou can also receive a regular, free newsletter by
value and quality. But by doing so, they can moreentering your email address at this site.
finitely increase their options for adding both valueYou are free to reproduce this article as long as no
and quality.a) Quality is directly related to the productchanges are made and the author's name and site
itself. A firm can increase a product's quality, but thatURL are retained.
increase may or may not be profitable. For example,