Value Innovation Process® Success Stories

The Value Innovative Process 1 lecture 00:00 Recapping the Value Innovation Process and enabling tools The Value Innovative Process 1 lecture 00:00 Recapping the Value Innovation Process and enabling tools Recapping the Value Innovation Process and enabling tools Recapping the Value Innovation Process and enabling tools Recapping the Value Innovation Process and enabling tools Recapping the Value Innovation Process and enabling tools First Success Story: Aplicare (Medical Products) 1 lecture 12:19 Aplicare - Transforming a Commodity to a Breakthrough The Key Points in this lecture are:

• Aplicare determined the Health Care Professional (ECP) was their Most Important Customer (the User) – Which represented a major change in thinking. Up to this point it was assumed to be the purchasing agent in the hopsital
• In 2004, competitors’ Dressing Change Kits were all the same basic design and price…..commodity?
• Aplicare developed a Value Curve for the HCP:
• Defined “What” value they needed to deliver
• And defined “How” to deliver the “What”

During this lecture you will see a Value Curve with Metrics for the Purchasing Agent where the top 3 Elements Of Performance are Price, Acceptance by the Health Care Professional (HCP) and Availability/Service Level. Overlapping Value Curves for Aplicare and all competitors are a sure sign you are fighting in a commodity market The project is defined, the Value Chain developed by the Aplicare project team in Step 2 of the Value Innovation Process is shared and the Most Important Customer identified using the 3 Question Template. Five problems with the standard kit were surfaced as a result of Contextual Interviews with Health Care Professionals and a Value Curve for the “To Be” case (the Advantage System) is shown compared to the standard kits. If Aplicare could deliver this Value Curve in a unique and defensible way, they would be swimming in a Blue Ocean. We share "How" Aplicare planned to deliver greater value to the HCP on the top six Elements of Performance. The Advantage Dressing Change System™ was introduced to the market in 2007 at a selling price of $5/unit. HCP’s reaction to the product was WOW! Patents were published by the USPTO in 2008 and 2010 with the claims covering package design' Aplicare was purchased by Clorox in January, 2012. First Success Story: Aplicare (Medical Products) 1 lecture 12:19 Aplicare - Transforming a Commodity to a Breakthrough The Key Points in this lecture are:

• Aplicare determined the Health Care Professional (ECP) was their Most Important Customer (the User) – Which represented a major change in thinking. Up to this point it was assumed to be the purchasing agent in the hopsital
• In 2004, competitors’ Dressing Change Kits were all the same basic design and price…..commodity?
• Aplicare developed a Value Curve for the HCP:
• Defined “What” value they needed to deliver
• And defined “How” to deliver the “What”

During this lecture you will see a Value Curve with Metrics for the Purchasing Agent where the top 3 Elements Of Performance are Price, Acceptance by the Health Care Professional (HCP) and Availability/Service Level. Overlapping Value Curves for Aplicare and all competitors are a sure sign you are fighting in a commodity market The project is defined, the Value Chain developed by the Aplicare project team in Step 2 of the Value Innovation Process is shared and the Most Important Customer identified using the 3 Question Template. Five problems with the standard kit were surfaced as a result of Contextual Interviews with Health Care Professionals and a Value Curve for the “To Be” case (the Advantage System) is shown compared to the standard kits. If Aplicare could deliver this Value Curve in a unique and defensible way, they would be swimming in a Blue Ocean. We share "How" Aplicare planned to deliver greater value to the HCP on the top six Elements of Performance. The Advantage Dressing Change System™ was introduced to the market in 2007 at a selling price of $5/unit. HCP’s reaction to the product was WOW! Patents were published by the USPTO in 2008 and 2010 with the claims covering package design' Aplicare was purchased by Clorox in January, 2012. Aplicare - Transforming a Commodity to a Breakthrough The Key Points in this lecture are:

• Aplicare determined the Health Care Professional (ECP) was their Most Important Customer (the User) – Which represented a major change in thinking. Up to this point it was assumed to be the purchasing agent in the hopsital
• In 2004, competitors’ Dressing Change Kits were all the same basic design and price…..commodity?
• Aplicare developed a Value Curve for the HCP:
• Defined “What” value they needed to deliver
• And defined “How” to deliver the “What”

During this lecture you will see a Value Curve with Metrics for the Purchasing Agent where the top 3 Elements Of Performance are Price, Acceptance by the Health Care Professional (HCP) and Availability/Service Level. Overlapping Value Curves for Aplicare and all competitors are a sure sign you are fighting in a commodity market The project is defined, the Value Chain developed by the Aplicare project team in Step 2 of the Value Innovation Process is shared and the Most Important Customer identified using the 3 Question Template. Five problems with the standard kit were surfaced as a result of Contextual Interviews with Health Care Professionals and a Value Curve for the “To Be” case (the Advantage System) is shown compared to the standard kits. If Aplicare could deliver this Value Curve in a unique and defensible way, they would be swimming in a Blue Ocean. We share "How" Aplicare planned to deliver greater value to the HCP on the top six Elements of Performance. The Advantage Dressing Change System™ was introduced to the market in 2007 at a selling price of $5/unit. HCP’s reaction to the product was WOW! Patents were published by the USPTO in 2008 and 2010 with the claims covering package design' Aplicare was purchased by Clorox in January, 2012. Aplicare - Transforming a Commodity to a Breakthrough The Key Points in this lecture are:

• Aplicare determined the Health Care Professional (ECP) was their Most Important Customer (the User) – Which represented a major change in thinking. Up to this point it was assumed to be the purchasing agent in the hopsital
• In 2004, competitors’ Dressing Change Kits were all the same basic design and price…..commodity?
• Aplicare developed a Value Curve for the HCP:
• Defined “What” value they needed to deliver
• And defined “How” to deliver the “What”

During this lecture you will see a Value Curve with Metrics for the Purchasing Agent where the top 3 Elements Of Performance are Price, Acceptance by the Health Care Professional (HCP) and Availability/Service Level. Overlapping Value Curves for Aplicare and all competitors are a sure sign you are fighting in a commodity market The project is defined, the Value Chain developed by the Aplicare project team in Step 2 of the Value Innovation Process is shared and the Most Important Customer identified using the 3 Question Template. Five problems with the standard kit were surfaced as a result of Contextual Interviews with Health Care Professionals and a Value Curve for the “To Be” case (the Advantage System) is shown compared to the standard kits. If Aplicare could deliver this Value Curve in a unique and defensible way, they would be swimming in a Blue Ocean. We share "How" Aplicare planned to deliver greater value to the HCP on the top six Elements of Performance. The Advantage Dressing Change System™ was introduced to the market in 2007 at a selling price of $5/unit. HCP’s reaction to the product was WOW! Patents were published by the USPTO in 2008 and 2010 with the claims covering package design' Aplicare was purchased by Clorox in January, 2012. Aplicare - Transforming a Commodity to a Breakthrough The Key Points in this lecture are:

• Aplicare determined the Health Care Professional (ECP) was their Most Important Customer (the User) – Which represented a major change in thinking. Up to this point it was assumed to be the purchasing agent in the hopsital
• In 2004, competitors’ Dressing Change Kits were all the same basic design and price…..commodity?
• Aplicare developed a Value Curve for the HCP:
• Defined “What” value they needed to deliver
• And defined “How” to deliver the “What”

During this lecture you will see a Value Curve with Metrics for the Purchasing Agent where the top 3 Elements Of Performance are Price, Acceptance by the Health Care Professional (HCP) and Availability/Service Level. Overlapping Value Curves for Aplicare and all competitors are a sure sign you are fighting in a commodity market The project is defined, the Value Chain developed by the Aplicare project team in Step 2 of the Value Innovation Process is shared and the Most Important Customer identified using the 3 Question Template. Five problems with the standard kit were surfaced as a result of Contextual Interviews with Health Care Professionals and a Value Curve for the “To Be” case (the Advantage System) is shown compared to the standard kits. If Aplicare could deliver this Value Curve in a unique and defensible way, they would be swimming in a Blue Ocean. We share "How" Aplicare planned to deliver greater value to the HCP on the top six Elements of Performance. The Advantage Dressing Change System™ was introduced to the market in 2007 at a selling price of $5/unit. HCP’s reaction to the product was WOW! Patents were published by the USPTO in 2008 and 2010 with the claims covering package design' Aplicare was purchased by Clorox in January, 2012. Aplicare - Transforming a Commodity to a Breakthrough The Key Points in this lecture are:

• Aplicare determined the Health Care Professional (ECP) was their Most Important Customer (the User) – Which represented a major change in thinking. Up to this point it was assumed to be the purchasing agent in the hopsital
• In 2004, competitors’ Dressing Change Kits were all the same basic design and price…..commodity?
• Aplicare developed a Value Curve for the HCP:
• Defined “What” value they needed to deliver
• And defined “How” to deliver the “What”

During this lecture you will see a Value Curve with Metrics for the Purchasing Agent where the top 3 Elements Of Performance are Price, Acceptance by the Health Care Professional (HCP) and Availability/Service Level. Overlapping Value Curves for Aplicare and all competitors are a sure sign you are fighting in a commodity market The project is defined, the Value Chain developed by the Aplicare project team in Step 2 of the Value Innovation Process is shared and the Most Important Customer identified using the 3 Question Template. Five problems with the standard kit were surfaced as a result of Contextual Interviews with Health Care Professionals and a Value Curve for the “To Be” case (the Advantage System) is shown compared to the standard kits. If Aplicare could deliver this Value Curve in a unique and defensible way, they would be swimming in a Blue Ocean. We share "How" Aplicare planned to deliver greater value to the HCP on the top six Elements of Performance. The Advantage Dressing Change System™ was introduced to the market in 2007 at a selling price of $5/unit. HCP’s reaction to the product was WOW! Patents were published by the USPTO in 2008 and 2010 with the claims covering package design' Aplicare was purchased by Clorox in January, 2012. The Key Points in this lecture are:

• Aplicare determined the Health Care Professional (ECP) was their Most Important Customer (the User) – Which represented a major change in thinking. Up to this point it was assumed to be the purchasing agent in the hopsital
• In 2004, competitors’ Dressing Change Kits were all the same basic design and price…..commodity?
• Aplicare developed a Value Curve for the HCP:
• Defined “What” value they needed to deliver
• And defined “How” to deliver the “What”

During this lecture you will see a Value Curve with Metrics for the Purchasing Agent where the top 3 Elements Of Performance are Price, Acceptance by the Health Care Professional (HCP) and Availability/Service Level. Overlapping Value Curves for Aplicare and all competitors are a sure sign you are fighting in a commodity market The project is defined, the Value Chain developed by the Aplicare project team in Step 2 of the Value Innovation Process is shared and the Most Important Customer identified using the 3 Question Template. Five problems with the standard kit were surfaced as a result of Contextual Interviews with Health Care Professionals and a Value Curve for the “To Be” case (the Advantage System) is shown compared to the standard kits. If Aplicare could deliver this Value Curve in a unique and defensible way, they would be swimming in a Blue Ocean. We share "How" Aplicare planned to deliver greater value to the HCP on the top six Elements of Performance. The Advantage Dressing Change System™ was introduced to the market in 2007 at a selling price of $5/unit. HCP’s reaction to the product was WOW! Patents were published by the USPTO in 2008 and 2010 with the claims covering package design' Aplicare was purchased by Clorox in January, 2012. The Key Points in this lecture are:

• Aplicare determined the Health Care Professional (ECP) was their Most Important Customer (the User) – Which represented a major change in thinking. Up to this point it was assumed to be the purchasing agent in the hopsital
• In 2004, competitors’ Dressing Change Kits were all the same basic design and price…..commodity?
• Aplicare developed a Value Curve for the HCP:
• Defined “What” value they needed to deliver
• And defined “How” to deliver the “What”

During this lecture you will see a Value Curve with Metrics for the Purchasing Agent where the top 3 Elements Of Performance are Price, Acceptance by the Health Care Professional (HCP) and Availability/Service Level. Overlapping Value Curves for Aplicare and all competitors are a sure sign you are fighting in a commodity market The project is defined, the Value Chain developed by the Aplicare project team in Step 2 of the Value Innovation Process is shared and the Most Important Customer identified using the 3 Question Template. Five problems with the standard kit were surfaced as a result of Contextual Interviews with Health Care Professionals and a Value Curve for the “To Be” case (the Advantage System) is shown compared to the standard kits. If Aplicare could deliver this Value Curve in a unique and defensible way, they would be swimming in a Blue Ocean. We share "How" Aplicare planned to deliver greater value to the HCP on the top six Elements of Performance. The Advantage Dressing Change System™ was introduced to the market in 2007 at a selling price of $5/unit. HCP’s reaction to the product was WOW! Patents were published by the USPTO in 2008 and 2010 with the claims covering package design' Aplicare was purchased by Clorox in January, 2012. Second Success Story: Chevron (The US's Second Largest Energy Company) 1 lecture 07:58 Chevron - ITC's Most Important Customers are inside the Company The Key Points made are:

• The Most Important Customer was always inside the organization
• Cycle times to complete the 10 Steps of the Value Innovation Process were reduced from 10 to 2 weeks because it was much easier to recruit Most Important Customers inside the organization
• The output from Contextual Interviews with Asset Managers (Have P&L responsibility for oil fields)
• Turned a very complex project into a very manageable project
• Produced a 5y strategic technology roadmap in 2006 that Chevron is still working on today

During the period 2005 to 2009, Chevron’s Information Technology Corporation trained 75 people on the Value Innovation Process and completed approximately 100 projects using it. During the period 2005 to 2012, Chevron moved from not meeting production forecasts and trailing ExxonMobil on return on upstream capital and net income/barrel of oil equivalent to exceeding production forecasts and leading ExxonMobil on return on upstream capital (25% compared to 20% in 2012) and net income/barrel of oil equivalent ($18 compared to $15 in 2012). Was this solely attributable to use of the Value Innovation Process? No, but it was a contributor! Second Success Story: Chevron (The US's Second Largest Energy Company) ugh the process in March, 2010 and launched it in 2011. There were two primary drivers for Water of Life: 2.4 billion people in the world lack adequate sanitation; 1.1 billion people are without access to potable water and there are 1.6 million deaths/year due to diarrhea disease attributable to dirty water and poor sanitation. Sponsors wanted to address this problem with a system solution for a family, not a village or a town (large investment and there maybe multiple donations required). The lecture shows Compassion’s Value Chain and the Value Curves they developed for Sponsors and Beneficiaries (a family...