Variables of Innovation Web Evolution Speed – Perceived Value

The speed with which ideas evolve through the innovation web archetypes depends upon 12 (twelve) interdependent variables: Resilience, Reciprocity, Agility, Perceived Value, Value Creation, Asset Impact, Cost Benefit, Sequence, Structural Integrity (Density), Structural Dependency (Centrality), Number of Participants and Stability. These variables are explored in a series of blog postings and will be completed by the presentation of a parametric model describing their interdependencies and permitting the simulation and analysis of the overall innovation web evolution process, including the impact of relevant “interventions” needed to accelerate the idea across the diffusion of innovation curve.

This posting explores the variable “Perceived Value”. This variable is the Value Networks translation of a concept more commonly known as “brand value” and is related to how valuable participants perceive your offerings to be. Perceived value is a way to assess the level of value participants feel they receive from individual deliverables, from other participants, and from the network as a whole. This could be understood as a way to assess the brand value of the innovation web.

The optimal perceived value will hereby differ for each innovation web archetype, although the principle counts that the higher the perceived value score the better. Upon achieving minimum perceived value (along with all other performance indicators) the innovation web is ready for transitioning to the next archetype. The transition threshold value for minimum agility is equal to being “above average” in comparison to a group of at least 13 comparative innovation webs in a similar context (for all performance indicators simultaneously) in order to permit the robust application of parametric assessment techniques for analysis. Whether or not this transition threshold has truly been achieved is also a qualitative judgement and thus requires validation and confirmation by all participants before commencing the transition process to the next archetype.

The image is drawn from and shows the Amazon rainforest which has some very different perceived values for various stakeholders (i.e. conservationists, loggers, pharmaceutical research etc.)

The symbol used for perceived value is “R” as used for a registered trademark, whereby we have to remember that brands per se primarily have intangible value.

Perceived value indicators are especially useful for surfacing assumptions - often unspoken or unconscious - about value and value flows. Simply because there is an interaction does not mean that positive value is being created. In fact people may actively dislike the input, or feel it is too costly to process - which could be a negative value. Perceived value is especially useful when applied to intangible deliverables, as it is often difficult to gauge their value with a number or financial measure.
Perceived value can be understood from the viewpoint of the sender, the receiver, or both. The first and most obvious comparison to make is how the sender and receiver might perceive value differently. For example a sender believes a deliverable brings high value to the recipient but the recipient perceives it as negative value. That would call into question whether it is worthwhile to expend resources to create that deliverable in the first place. Does that deliverable really provide value to the recipient? It also is useful to compare perceived value indicators with the comparable cost/benefit data.

The assessment of perceived value is a qualitative exercise performed by participants when reviewing the performance of an innovation web. Perceived value is typically scored on a simple 3, 5 or 7 step scale (i.e. high / medium / low) and the scoring based on a discussion regarding what makes a deliverable valuable for the sender and for the receiver. It is not uncommon to find differences between the value perceptions of senders and receivers. Perceived value is assessed individually for each deliverable and then aggregated for All Deliverables, Intangible Deliverables and Tangible Deliverables.

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