Innovation, Value Proposition, or Good Ole “Quid Pro Quo”?
One of the first things I do with new clients in my business consultancy, is have them ‘pitch’ the business to me. When doing this, I find even the most tedious and cliched deliveries to be truly fascinating, because hidden amongst the multitude of repetitive sentences and nervous gap-filler phrases, are tiny gems — the core ideas of the clients’ enterprise; the stuff of real, tangible value to a potential customer. Over the next hours and days, I draw these gems out and develop that, which in business jargon, goes by the term ‘value proposition’.
Jargon, by its nature, can be exclusionary and confusing. If we attempt to demystify the term ‘value proposition’, it is really no different from the commonly used phrase, ‘quid pro quo’ (literally translated: ‘that’ for ‘this’; an equitable exchange). So when an enterprise truly understands what it’s customer wants, and identifies the most efficient means of satisfying that need, an equitable bargain can be struck between itself and it’s customers, setting the stage for potential success.
‘Innovation’ is jargon, and its use has dramatically risen in recent years. Yet I believe it captures the broader notion of a business ‘value proposition’ — the solving of a pressing need through efficient enterprise resulting in an equitable exchange.
This chart from Google Books paints an interesting picture regarding the use of the words ‘invention’ vs ‘innovation’. Since the mid-seventies, ‘innovation’ has occurred much more frequently. One possible explanation is that until recently, we were focused on solving siloed problems by means of inventions (and protected by patents). We seem to now realize that real solutions for real problems need breaking down of silos, or true ‘innovation’.
