Monday, November 19, 2012

10 Types of Innovation


 Doblin innovation consulting group (Doblin.com – founders Jay Doblin and Larry Keeley) divides types of innovation into 10 types of innovation (4 major categories with 10 subcategories):
  • Finance including Business Model and Networking
  • Process including enabling and core processes
  • Offering including product performance, product system, service
  • Deliver including channel, brand and customer experience
Companies tend to spend most of their money and effort on product performance innovation.  Historically, however, most of the value creation has come from Business Model and Networking innovation according to Larry Keeley. Doblin members Bansi Nagji and Geoff Tuff in HBR May 2012 further add an assessment of 3 levels of innovation ambition:
  • Core – optimizing existing products for existing customers
  • Adjacent – expanding from existing business into the “new to the company” business
  • Transformational – developing breakthroughs and things for markets that don’t exist yet
The interesting thing is to note how using this model to perform an innovation landscape assessment can tell you where the remaining innovation opportunities are.  For example, in an industry where most of the innovation focus is around the offering (product performance, product system, service), there are many other innovation opportunities left unexplored where you can make inroads, flank the competition and create a sustainable competitive advantage.

2 comments:

Kathryn Welds said...

Hello Jennifer,
Is there a structured assessment tool or format to evaluate the innovation landscape?
Could you include the URL to the HBR article?
Thanks for the succinct summary!

Jennifer Hartnett-Henderson said...

Hi Kathryn! Thanks for your comment! And my apologies for not including the link in the first place. You can find the article for free here: http://blogs.hbr.org/cs/2012/05/a_simple_tool_you_need_to_mana.html

If you take a look at the illustration you can see the extent of the assessment framework. There's enough there to steer by if you're already familiar with the business like you are. Thanks again for reading! Jennifer