The book's authors, Keeley L., Walters H., Pikkel R. and Quinn B., have made it a cornerstone in the field of innovation, helping countless organizations discover new avenues for growth and success.
They define “innovation” as anything that is new or novel in its context and contributes to making a product or service viable and profitable. However, most innovation projects end in failure due to a lack of understanding of how to classify and apply innovations.
Ten types of innovation
The authors identify ten fundamental types of innovation, which are divided into three categories: “configuration”, “offer” and “experience”. Successful innovation usually requires a combination of at least five of these types that companies can leverage to create value and differentiate themselves from their competitors. These ten types are:
Configuration
Profit model: This is your business model and focuses on how a company captures value and generates revenue streams. It involves rethinking pricing mechanisms, revenue models, cost structures and charging procedures to break away from industry standards. For example, Next Restaurant sells tickets to customers who buy their meals before dinner and pay less during off-peak periods.
Networked innovations: these revolve around leveraging external connections and partnerships to create value that could not be achieved alone. This could involve creating new networks, leveraging existing ones, or reshaping the dynamics within a network.
Structure: refers to how a company organizes and aligns its talents and assets. It encompasses organizational design, governance, and the formal and informal relationships that shape decision-making processes.
Process: Process innovations aim to improve the efficiency and effectiveness of a company's operations. This could involve revamping workflows, optimizing supply chains or adopting new tools and technologies. Offer
Product performance: focuses on improving the core features and functionality of a product or service, such as its features, design or user experience.
Product system: system innovations involve the creation of complementary products or services that work together as a cohesive system, enhancing the overall value proposition. Experience
Services: revolve around introducing new services or improving existing ones, often by leveraging technology or redesigning the service delivery process.
Channel: involve exploring new ways of connecting with customers and delivering offerings, such as through new distribution channels, sales approaches or communication methods.
Branding: these are intended to redefine how a company represents itself and how it is perceived by customers and stakeholders. This may involve repositioning, rebranding or creating new brand experiences.
Customer engagement: focuses on enhancing the customer experience and fostering deeper customer relationships. It involves understanding their needs, preferences and behaviors to tailor offerings and interactions accordingly.
Innovation mix
The authors argue that meaningful innovation involves combining at least five of the ten different types of innovation. Understanding these ten types and the importance of combining them correctly can help you understand why most innovation projects fail and how to make your projects successful.
Avoiding failure
Most innovation projects end in failure. The authors argue that this is often because they do not apply the right types of innovation to their projects.
The authors provide real-world examples and case studies that illustrate how companies have successfully applied these ten types of innovation. They also offer practical guidance and frameworks for identifying and exploiting innovation opportunities within each type. By exploring them, companies can broaden their perspective and discover new avenues for growth, differentiation and competitive advantage. This book underscores the importance of a holistic approach to innovation, recognizing that true breakthroughs often arise from combining multiple types of innovation in novel and synergistic ways.
Classifying innovation for successful execution
“Ten Types of Innovation” provides a framework for understanding and diagnosing patterns of innovation within industries, identifying innovation opportunities, and assessing the performance of companies against their competitors. By understanding the ten types of innovation and how to combine them effectively, organizations can increase their chances of success in their innovation projects. Remember that innovation is not just about being new or novel, but about creating something desirable, viable and profitable.
Bibliography
Keeley L. et al. (2013). Ten Types of Innovation: The Discipline of Building Breakthroughs. Publisher Wiley. First Edition.
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