The Three Value Groups
Within its hunting grounds, a business can pursue three fundamentally different value strategies - depending on where a given Foundation of Value sits on its S-curve (recall Module 6). GInI groups the seven Growth Pathways into these three value groups. Understanding them tells you what kind of play each pathway is.
1. Value Extraction
Extracting the maximum possible value from a declining Foundation of Value. Not investing for further growth - just harvesting what remains from a foundation past its peak.
2. Value Capture
Continuing to capture as much value as possible from an existing (growing or maturing) Foundation of Value - nurturing it and applying it more broadly. Sometimes called "stretching the current S-curve".
3. Value Creation
Creating entirely new Foundations of Value. Sometimes called "building new S-curves". Larger investment, higher risk, bigger potential payback - the source of long-term resilience.
| Group | FoV state | Investment / risk / payback |
|---|---|---|
| Value Extraction | Declining | Minimal / low / harvest |
| Value Capture | Growing / maturing | Smaller / lower / smaller |
| Value Creation | New | Larger / higher / bigger |
Across your current innovation efforts, how much sits in Value Extraction, Capture, and Creation? Is any real value-creation happening, or is it all capture and harvest?
Sources
- Global Innovation Institute (GInI), Foundations of Innovation - GInI Growth Strategy Roadmap.
- Foster, R., Innovation: The Attacker's Advantage, 1986 (S-curves).
- Global Innovation Institute (GInI), body of knowledge.