Benefit as a Medium for Value Creation and Innovation

Abstract

Grounded theory is used to examine the relationship between benefit and innovation. The benefits of a broad array of products were considered, and a list of benefit and functionality categories was devised. 84 products were considered, with little (no) restriction on brand, industry, or time frame. From this 16 benefit categories and 17 functionality categories were listed. These benefit and functionality categories are seen as universal, and not product or industry or time specific. Benefit was equally examined and categorized from the vantage point of market entry and the replacement of existing or incumbent products. The notions of core benefit/functionality, as well as necessary and redundant benefit/functionality, were also used. Universal benefit and functionality categories should aid innovators and entrepreneurs, and bring greater coherency to their efforts. Also, benefit and functionality may equally reflect on customer satisfaction.