The phrase, ‘think outside the box’ has become commonplace.
The box represents the imaginary limitations or parameters for a situation. These “Dimensions of Value” are leverage points that create value to the customer. Think of the box as having three or six sides. Each side is a value point to the consumer.
For any particular product or service there is a standard that represents the current market. As that market gains new entrants, there will be an increase in competition and a decrease in operating margins. An organization is challenged to increase innovation.
Innovation is or may be achieved via moving one of the walls of the box. Consumers change over time. What is optimal for consumers today, is suboptimal for customers tomorrow.
Organizations must challenge themselves with innovation that increases consumer value as well as returns to the firm. This must be done even if it destroys the old business. The organization is better off destroying itself via innovation than to be destroyed by an outside force with no alternatives available.