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Are you part of the pack, or running out in front? Do you have a well-defined value proposition? Are there some customers you are better able to service than others? Does your firm have skill-sets or technologies the competition lacks? Who knows about them? We innovate to distinguish what we offer from others with similar products or services. We do this for one primary reason: to command higher prices and therefore higher margins. Innovation means avoiding commoditization. But innovation alone is not enough to reach the higher margin markets. To accomplish this, innovation must result in separation. Geoffrey Moore, in his book Dealing with Darwin, reminds us that Chevrolet has built many innovations into its sedans over the last ten years. But does an image of any of them come immediately to mind? How about the Mini Cooper? Knowing what separates you from the crowd is an integral part of developing a successful business strategy. |
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