Defining Innovation Types

04/10/2023© Marc Sniukas www.sevenprophets.com1

Innovation?


Management Innovation

Strategic Innovation

Business Model InnovationValue Innovation

Product Innovation

Service Innovation

Market Innovation

Process Innovation

Technological Innovation

Disruptive Innovation

Application Innovation

Experiential Innovation

Marketing Innovation

Structural Innovation

Brand Innovation

User Lead Innovation

Supply Chain Innovation

Evolutionary Innovation

Revolutionary Innovation


What are you talking about?


Innovation comes in many flavors.


A map provides orientation.

04/10/20236 © Marc Sniukas www.sevenprophets.com

The Innovation Map

A Framework for Defining Innovation Outcomes


What‘s the „direction“ of your innovation efforts?

Internal Innovationvs

External Innovation


Just how innovative do you want to be?

Continuous / Evolutionary Innovation

vs

Discontinuous / Revolutionary Innovation


The Innovation Map: 4 prototypal innovation types

Internal

External

DiscontinuousContinuous


Operational Innovation

Product & Service Innovation



What‘s the difference?



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.



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.



What is it about?

(1) new business models (including a new value chain architecture), or

(2) new markets (either by creating new ones or reshaping existing ones), or

(3) 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.

http://www.sevenprophets.com/




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



The Innovation Map

Internal

External

DiscontinuousContinuous





Processes

Technological innovation

Disruptive Innovation

Blue Ocean Strategy

Customer interfaces and experiences

New offerings

Partner interfaces

Internal structures and processes

People Management

Channels

Brand

Networking

Supply Chain

Technological innovation

New markets


How to use the Innovation Map?


How to use the Innovation Map?

1. Use the map to illustrate the 4 definitions, differences and commonalities of the 4 types. Which ones would you like to target?

2. In your next innovation meeting, put out the map and focus your discussion on the 4 quadrants and what you would like to achieve.

3. 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.


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.


Want more?


www.sevenprophets.com


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


A presentation by Marc Sniukaswww.sniukas.com