Types of Innovation
It is easy to talk about innovation but it seems to mean almost everything new. Hat is important about innovation is that it is about developing competitive advantage. There are several classifications of innovation but this should make things clearer:
Financial innovation
Business model innovation - How you make money e.g. Dell prepayment before your computer is built
Network innovation - How you work with other companies for joint benefit - outsourcing parts of your business to concentrate on what you are good at
Process innovation
Cultural innovation - Continuous improvement as a way of working for all employees
Employment innovation - Innovation in employment models and compensation using a part time workforce or an older, more experienced workforce e.g. B & Q
Product/Service innovation
Invention or adaptation - of products from one market to another
e.g. post it notes -> Flip charts with the same adhesive strips
Customer focused innovation - Inventing new products based on the current or unmet needs of customers e.g Ipod
Bundling products in new or innovative ways e.g. Microsoft Office
Providing services that significantly enhance your offering e.g. Virgin Upper Class
Delivery Innovation
How you get your offerings to market e.g. on line supermarket shopping & home delivery
Brand innovation - this can completely re-position a range of products in a market e.g. Magners cider
Customer Experience - customers identify so closely with the brand that it defines how they feel about themselves e.g Harley David son owner
Over the next few editions of the showcase I will discuss each of these types of innovation in more detail and I would like you to give me more examples from your own business or recommend businesses you deal with.
