This document defines and provides examples of different types of innovation: 1) Incremental innovation involves small improvements to existing products to maintain competitive advantage. Gillette added additional blades to their razors through incremental innovation. 2) Radical innovation significantly changes customer expectations and often replaces existing technologies, like digital photography replacing film cameras. 3) Breakthrough innovations create new markets through new technologies, like the internet, which was not initially focused on customer wants. 4) Value innovation involves new processes, business models, or ways of delivering products/services to increase value for customers.

1. ABC
Raman Deep
XYZ

2. Meaning Of Innovation
Innovation is the development of new values through solutions that
meet new needs, inarticulate needs, or old customer and market
needs in value adding new ways
The process of translating an idea or invention into a good or
service that creates value or for which customer
will pay.
This is accomplished through more
effective products, processes, services, technologies, or ideas that
are readily available to markets, governments, and society.

3. Definition of Innovation
By Hutch Carpenter[23 sep,2010]

4. Innovation Quote
• "What impresses men is not mind,
but the result of mind."
– Walter Bagehot
• "Innovation is the process of
turning ideas into manufacturable
and marketable form."
– Watts Humphrey

5. Types of Innovation
Incremental Innovation
Radical Innovation
Breakthrough Innovation
Value Innovation

6. Incremental Innovation
• A series of small improvements to an existing product or product line
that usually helps maintain or improve its competitive position over
time.
• Incremental innovation is regularly used within the high technology
business by companies that need to continue to improve their
products to include new features increasingly desired by consumers.
• Incremental innovation (sometimes referred to as sustaining
innovation) uses existing forms or technologies as a starting point.

7. Example of Incremental
"Gillette used to make razors with a single blade. Later, one of its
diligent students of stubble asked, Wouldn’t two blades be
better than one? Thus was born the Trac II. Next came – guess
what? – a razor with three blades – the Mach III. I love Gillette
razors – use one every morning."

8. Radical Innovation
Radical innovations provide something new to the world
that we live in by uprooting industry conventions and by
significantly changing customer expectations in a positive
way. Ultimately, they often end up replacing existing
methods / technologies.

9. Example of Radical
• Digital photography - It is rare these days that you see
anyone with a camera that takes film and many retail outlets
now offer self-serve digital photo outlets where you can
download your images, select, crop
and resize them and then print them
onto photographic paper. Gone are
all the “post your film in an envelope
for processing” type services.

10. Breakthrough Innovation
• Breakthrough innovations are generally considered “out-of-
the-blue” solutions that cannot be compared to any existing
practices or techniques. These innovations employ new
technologies and create new markets.
• Most breakthroughs are developed by R&D groups who often
have not thought specifically about a particular commercial
market application.
• Conventional wisdom says listen to the market, but
breakthroughs come from labs that do not have what the
customer wants in mind. These technologies are then pushed
onto the consumer

11. Example of Breakthrough
For example, Tim Berners-Lee, a software engineer, created
a network of interconnected computers to share and distribute
information easily and cheaply in 1980.
This network developed into the Internet.
Tim never thought about what customers wanted when he
created his network.

12. Value Innovation
It could be a new process, a new way of going to market or
business model, a new way of delivering the product or
service, new packaging, or new services.
Any organization of any size, whether for-profit or not-for-
profit, an association, a government agency, a school board
and so on can use the value innovation methodology.
Support groups within an organization such as IT, finance,
purchase and human resource can use these tools to deliver
much greater value to the most important customers in their
business units.