The Forms of Innovation
The most limiting belief in business innovation is that innovation means new products or new technology. In truth, innovation can take many forms - and some of the most valuable innovations in history changed how value was delivered rather than what was sold. Broadening your view of the forms of innovation multiplies where you can look for opportunity.
A spectrum of forms
New or improved physical, digital, or hybrid products.
New ways of delivering value as a service.
New customer experiences across a journey of touchpoints.
New ways of producing or operating - faster, cheaper, better.
New ways of creating, delivering, and capturing value.
New ways of organising, leading, and working.
Business-model innovation: the quiet giant
Of all the forms, business-model innovation is often the most powerful - and the most overlooked. Netflix did not invent streaming technology; it innovated the model. Dollar Shave Club did not invent razors; it innovated the subscription model and direct-to-consumer delivery. Uber did not invent cars; it innovated a platform model. In each case, a new model - not a new product - unlocked enormous value.
When your organisation thinks about innovation, which forms does it actually consider - and which does it ignore? Where might the biggest untapped opportunity be?
Sources
- Global Innovation Institute (GInI), Foundations of Innovation body of knowledge.
- Keeley, L. et al., Ten Types of Innovation, 2013.
- Sawhney, Wolcott & Arroniz, "The 12 Different Ways for Companies to Innovate", MIT SMR, 2006.