Innovative Value

The social entrepreneur aims to change and benefit society by creating value. To do this, the non-profit pursues a mission-related impact using its strategic position.  Creating value is done by either cost-savings or offering new solutions or a combination of both.

Cost savings are made by eliminating or reducing factors which the industry competes upon. Buyer value is lifting by creating new solutions never offered before.

Value curves are diagrams which assists social entrepreneurs with evaluating how to compete and where to invest by highlighting the value proposition that entrepreneurs create. They compare solutions on a range of factors like features, benefits and pricing. They can also map competitors and identify gaps and opportunities.

Use a four action framework to identify your value curve:

1. Which common production or process factors can be eliminated?
2. Which factors should be reduced well below industry standard?
3. Which factors should be raised well above industry standard?
4. Which factors should be created that the industry has never offered?

Base your answers about the real needs and solutions of the target under-served population. Place emphasis on what matters to them and exceed their desires. Eliminate or reduce less valuable factors by re-directing your investment into raising benefits.