Organizations adopt and implement various strategies for organization performance amongst them innovation strategies (Kurgat, 2017). Innovation has emerged to be a core activity in the current business world. Commercial banks can enhance their profitability, market share and product performance through acts of innovation either through new technologies or new ways of doing things (Kariuki, 2017). Defining innovation, Armstrong & Baron (2014), stated that innovation is about coming up with an improved and new way of doing things. Innovation is about the application of new ideas that lead to invention of another item, services, new business framework or another strategy for the executives which decidedly affect usefulness and development (Drucker, 2014).

The environment in which organizations are operating globally and locally is constantly changing with different factors influencing organization performance (Munafis, Djamil & Walujadi, 2018). This calls for a need for any organization to adopt viable strategies if it is to survive in the competitive business environment. Companies are affected by change factors such that if the environment is altered, this calls for a need to consequently respond. In response to these changes, organizations need to embrace a strategic approach by acting proactively even if it means getting out of their conventional way of doing business and consequently guaranteeing sustainability of services rendered and products offered (Kim & Mauborgne, 2017). The banking sector has continued to face stiff competition mainly from the mobile telephony industry and a decline in profitability given the liberalization and globalization of the economy, tough economic situations coupled with the regulation of the banking sector and the increased political apprehensions and reforms, rivalry from new entrants and technological progression (KBA, 2017).

Research has proved that innovative companies have continued to excel in the competitive business environment, more importantly those organizations that have embraced value innovation strategies. Value innovation is about formation of new market opportunities and expanded client value by redesigning the prevailing markets to realize enhanced worth for clientele (Gebauer, Worch, and Truffer, 2012) and (Ionescu and Ionescu, 2015). Value innovation has an explicit point of accomplishing a competitive advantage by making value to customers as well as creating new market opportunities.

it a case study use it to answer the following questions

Kim and Mauborgne (2017), states that innovation entails adding value to customers. In the modern competitive business environment, firms have a choice to either innovate or die. Companies should advance across the value chain, not simply in research and development but also in regard to value creation (Fuente, Kauffman & Orunta, 2018). Value innovation is a departure from the conventional way of doing business to a disruptive new way that creates new market opportunities rendering competition irrelevant (Kim & Mauborgne, 2017). Value innovation anchors on envisioning the actual issues, hence rendering competition insignificant. It involves creating extraordinary value for its client (Kim & Mauborgne, 2017).

Value innovation forces ventures to change, refine and upgrade current products to keep organizations in current markets. Innovation or even rolling out little improvements can create market opportunities to an organization and bring the organization into a new market space where nobody else is, hence creating superior positions (Kim & Mauborgne, 2017). Value innovation happens when an organization align innovation to utility, cost and money saving advantages for clients. Organizations that realize value innovation seek variation and minimal cost concurrently. Value innovation seeks to develop the market fundamentally by changing non customers into customers. The way to realizing this is to provide consumers features and components which have at no other time been accessible to them at an affordable cost. Overtime, as economies of scale become effective, costs will consequently decrease even more (Mi, 2015).

Value innovation has proved to have a worthwhile impression on performance of organizations. Kim and Mauborgne (2014), cited the following companies as great innovators: Enron in energy, CNN in news broadcasting, Wal-Mart in retail limiting, Compaq in PCs (after its turnaround), Kinepolis in film, IKEA in furniture retail, Charles Schwab and Co. in venture and investment, Home Depot in home improvement retail, SAP in business application programming, Barnes and Noble in book retailing, Southwest Airlines in short-distance air travel among others. Kinepolis launched 24 inch screen megaplex in US with spacious seats, better viewing and impressive sound system. These value innovations attracted people to draw back to movie theatre at a period when VCRs and home theaters were perceived to be better and more advanced (Whittington, 2011). Wal-Mart adopted new and innovative ways in order to keep its store network ahead of the competitors. In 2016, Wal-Mart introduced mobile payments making shopping faster and easier transforming their customer experience (Pousttchi & Hufenbach, 2012). IKEA made slight modifications to its furniture in order to cater for its customers' needs in China since the Chinese apartments were small. They also sourced for materials locally. In 2004 its revenue in China increased by 40% compared to the year before (Mauborgne, 2014). MTN, the Africa's leading mobile telecoms operator introduced its Mobile Money Insurance solution in 2011, through creation of a mobile App which allows customers to pay for their insurance premiums. The App also allows customers to browse and book accommodation and car rental services using their phones.

QUESTIONS

1. The above case relates to value innovation in the banking sector...research and write a minimum of one page on value innovation in an industry of your choice
2. Strategic plans have unique challenges, mention these challenges and indicate innovative solutions
3. As the strategic director of a TVET institute,discuss strategic issues you would enhance to ensure performance and satisfaction of customers