Defining Innovation Types.

Innovation?
© Marc Sniukas www.sevenprophets.com
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Revolutionary Innovation
Management Innovation
Service Innovation
Experiential Innovation
Business Model Innovation
Value Innovation
Structural Innovation
Market Innovation
Process Innovation
Strategic Innovation
Evolutionary Innovation
Application Innovation
Marketing Innovation
User Lead Innovation
Product Innovation
Technological Innovation
Brand Innovation
Supply Chain Innovation
Disruptive Innovation
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What are you talking about?
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Innovation comes in many flavors.
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A map provides orientation.
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The Innovation Map
A Framework for Defining Innovation Outcomes
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What‘s the „direction“ of your innovation efforts?
Internal Innovation
vs
External Innovation
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Just how innovative do you want to be?
Continuous / Evolutionary Innovation
vs
Discontinuous / Revolutionary Innovation
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The Innovation Map: 4 prototypal innovation types
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Internal
Operational Innovation
Continuous
Discontinuous
Product & Service Innovation
External
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What‘s the difference?
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What is it about?
Process innovation: making processes for established offers in established markets more effective or efficient
technological innovation in manufacturing
Of course concepts like the moving assembly line, TQM, SCM, Six Sigma or Lean Manufacturing were radical innovations at the time they were being invented. If your company implements such concepts today, they might represent a radical innovation for your organization, but the concept as such is not revolutionary. It would rather be the application of best practices.
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What is it about?
taking established offers in established markets to the next level
making surface modifications that improve customers' experience of established products
Product & Service innovations can of course also be radical and disruptive...but than it‘s rather strategic innovation, the difference being that radical product innovations provide an completely new level of value to both the customer and the company producing them.
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What is it about?
new business models (including a new value chain architecture), or
new markets (either by creating new ones or reshaping existing ones), or
increased value for both the customer and the company
or a combination of these three, and as such it‘s nature is radical. It‘s a departure from a company‘s traditional definition of „how we do business around here“.
Strategic Innovation does include concepts like Value Innovation, Blue Ocean Strategy and Disruptive Innovation and Business Model Innovation.
For more about the relationship of BMI and Strategic Innovation, see the „Putting it all together“ prezi at www.sevenprophets.com.
For more on strategic innovation, download „Reshaping strategy: The who, what and how of strategic innovation“ at www.sevenprophets.com.
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What is it about?
Management Innovation changes the way managers do what they do, and does so in a way that enhances organizational performance.
„Management innovation is anything that substantially alters the way in which the work of management is carried out, or significantly modifies customary organizational forms, and, by doing so, advances organizational goals.“ Gary Hamel
The target of innovation efforts are the business processes and not the manufacturing processes. It‘s about „fundamental breakthroughs in how companies organize, coordinate, plan, motivate and allocate resources...“ Gary Hamel
For more on management innovation have a look at „The Future of Management“ presentation at www.sevenprophets.com
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The Innovation Map
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Internal
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Technological innovation
Partner interfaces
Internal structures and processes
Processes
Networking
People Management
Continuous
Discontinuous
Disruptive Innovation
Brand
Supply Chain
Customer interfaces and experiences
Technological innovation
Blue Ocean Strategy
New offerings
Channels
New markets
External

How to use the Innovation Map?
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How to use the Innovation Map?
Use the map to illustrate the 4 definitions, differences and commonalities of the 4 types. Which ones would you like to target?
In your next innovation meeting, put out the map and focus your discussion on the 4 quadrants and what you would like to achieve.
Next, draw a cross on a flip chart and map all your innovation projects and initatives on it. Are your initiatives inline with the proclaimed objectives?
All of these uses can help to resolve issues and never ending discussions on what should be done or not done and what the desired objectives are.
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Some final thoughts...
Of course these 4 types can overlap. Strategic Innovation will have internal implications, just as management innovation can have an impact on how your organization relates to external stakeholders. Product innovation can be ongoing or it can be revolutionary. Nevertheless the initial focus of innovation efforts are primarily internal or external and aiming at continuous or discontinuous innovation to start with.
No matter how you‘ll be using the map, it will provide orientation and focus the discussion and your efforts.
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Want more?
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www.sevenprophets.com
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This presentation was inspired by...
Marc Sniukas „Reshaping Strategy: The Who, What, How of Strategic Innovation.“ Research paper, 2008
Gary Hamel, Bill Breen „The Future of Management“, Harvard Business School Press, 2007
Michael Mol, Julian Birkinshaw „Gian Steps in Management“, FT Prentice Hall, 2008
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A presentation by Marc Sniukas
www.sniukas.com
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