How do enterprises carry out product innovation?

If you want to realize value, you have to innovate. Innovation includes three different levels: individual, organization and system. In business, we call it value proposition, business model and ecosystem.

Most companies successfully create value through their ideas, assets and technologies, focusing on product innovation (which belongs to the first level of "value proposition"). A few companies derive business model innovation from their products, which changes the formula of value creation, distribution and acquisition (the second level "business model"). A few companies focus on transforming or creating a brand-new ecosystem (the third-level "ecosystem"). Ecosystem innovation is not suitable for timid people: it is usually a protracted war, accompanied by profit delay and many uncertainties. Once successful, it will also bring opportunities to reshape the industry, rich returns and transformative social impact.

Greg Bernarda, former co-director of the World Economic Forum, co-author of Value Proposition Design, and expert in strategic management and innovation, took Tesla as an example in a public welfare online speech held by BCC Group. Tesla is a company that is good at cooperating with various companies in the ecosystem. Its innovation lies in uniting consumers, competitors and partners. On the one hand, it enables partners to develop new technologies and become advocates of new industry norms, on the other hand, it provides subsidies for users and partners, even patents obtained by opening to the outside world. This not only broke through the traditional industry boundaries, but also shouldered the responsibility of changing the entire ecological environment, thus making the concept of electric vehicles successfully landed.

This is what we call ecosystem leaders, who shape the ecosystem by creating new networks, relationships and new standards ("new homes") for participants and their environment.