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VALUE INNOVATION: PASSPORT TO WEALTH CREATION
Here are practical ways to help your company grow profitably.

Thomas A. Dillon, Richard K. Lee and David Matheson

OVERVIEW: Although most managers will agree that innovation can be the passport to wealth creation, many of their actual business practices and behaviors fail to support the activities crucial to value innovation. In particular, many companies over-emphasize technology innovation and R&D, which, when used in isolation, are insufficient to create new wealth. Through literature review and interviews with value innovators, a subcommittee of the Industrial Research Institute’s Researchon-Research Committee has defined a value innovation process, providing a framework to develop a new product, service or business model that will have a strong, positive effect on enterprise value. The subcommittee also created a Value IQ instrument to help companies understand their ability to value-innovate Thomas Dillon is senior vice president of Scientific Applications International Corporation (SAIC), in San Diego, California, with responsibility for SAIC’s state and local government business. Previously, he was vice president of General Atomic’s Defense Division, where he directed GA’s business applying energy technology to national security programs. As the U.S. Department of Energy’s principal deputy assistant secretary, nuclear energy, he managed federal nuclear energy programs with an annual budget of $4 billion. He was also deputy director and chief operating officer for the National Bureau of Standards (now NIST), a national laboratory with a staff of 3,800. He received his Ph.D. in chemical physics from the University of Colorado. [e-mail] Richard (“Dick”) Lee is president and CEO of Value Innovations, Inc. (Vi), Castle Rock, Colorado. He is an emeritus member of the Industrial Research Institute and currently vice chairman of IRI’s Emeriti Committee. Vi is a consulting firm focusing on value innovation