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The
Ten Types of Innovation™
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| Innovation Category |
Innovation Type |
Description of type |
Business example |
| Finance |
Business model |
How you make money | Dell revolutionized
the personal computer business model by collecting money before the consumer's
PC was even assembled and shipped (resulting in net positive working capital
of seven to eight days). |
| 2 Networks and alliances |
How you join forces
with other companies for mutual benefit |
Consumer goods company
Sara Lee realized that its core competencies were in consumer insight,
brand management, marketing and distribution. Thus it divested itself of a majority of
its mfg. operations and formed alliances with mfg. and supply chain partners. |
|
| Process |
3 Enabling process |
How you support the
company's core processes and workers |
Starbucks can deliver
its profitable store/coffee experience to customers because it offers
better-than-market compensation and employment benefits to its store workers--usually
part time, educated, professional, and responsive people. |
|
4 |
How you create and add value to your offerings | Wal-Mart continues
to grow profitably through core process innovations such as real-time
inventory management systems, aggressive volume/ pricing/delivery contracts
with merchandise providers, and systems that give store managers the ability
to identify changing buyer behaviors in and respond quickly with new pricing
and merchandising configurations. |
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| Offerings |
5 Product performance |
How you design your
core offerings |
The VW Beetle (in
both its original and its newest form) took the market by storm, combining
multiple dimensions of product performance.
|
Product system |
How you link and/or
provide a platform for multiple products. |
Microsoft Office "bundles
a variety of specific products (Word, Excel, PowerPoint, etc.) into a
system designed to deliver productivity in the workplace. |
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| 7 Service |
How you provide value
to customers and consumers beyond and around your products |
An international flight
on any airlines will get you to your intended designation. A flight on Singapore Airlines, however,
nearly makes you forget that you are flying at all, with the most
attentive, respectful, and pampering pre-flight, in-flight and post-services
you can imagine. |
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| Delivery |
8 Channel |
How you get your offerings
to market |
Legal problems aside,
Martha Stewart has developed such a deep understanding of her customers
that she knows just where to be (stores, TV shows, magazines, online,
etc.) to drive huge sales volumes from a relatively small set of "home
living" educational and product offerings. |
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Absolut conquered
the vodka category on the strength of a brilliant "theme and variations"
advertising concept, strong bottle and packaging design, and a whiff
of Nordic authenticity. |
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10 |
How your customers
feel when they interact with your company and its offerings |
Harley Davidson has
created a worldwide community of millions of customers, many of whom would
describe "being a Harley Davidson owner" as a part of how they fundamentally
see, think, and feel about themselves. |
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Doblin Inc. is moving |
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