Types of Innovations
Successful companies manage Innovation strategically to drive sustainable and profitable growth.
Doblin identifies 10 distinct types of innovations across three categories
Innovations applies to profit models, networks, structures and processes. Typically these are the activities needed to develop a product offering.
Innovations apply to products performance and product systems. This is what companies produce.
Innovations apply to this is how services, channels, brand, and customer engagement. This is how an offering is delivered to customers.
Companies with robust innovation plans can capitalize on exceptional growth and brand loyalty.
Apple and Amazon are the two best examples as they continue to leverage innovation in all three areas.
You could summarize Apple’s success into a few categories,
- Robust business strategy planning which speaks too what markets they are going to go after, why, what is the TAM, SAM & SOM, product planning. Take a look at how much life time revenue most of their products have generated
- Innovation, I can’t stress enough how much innovation Apple has done over the year. Many associate development of iPod and iPhone as innovative however they fail to looks at the “real innovation” which was bringing hardware, software and services together to build a “ecosystem”. Apple has built a ecosystem that allows for customer retention and further more increased wallet share of that customer over multiple product lines. How many people do you know that have multiple Apple products. Apple is also a great example of “Industry 4.0”. Monetizing every value step of the value chain over multiple product the life cycles is the real innovation. Such strategies and execution requires great visionary mind and Steve J was one of the few to do it. Amazon is another example of such excellence
- Operational Excellence, no doubt Tim Cook has raised the bar recently however Apple has always been great at “Designed in CA but built in China” model. They have also exercised great discipline when it comes to supply chain management and driving YOY improvements and cost reduction thus maximizing profit
Stay tuned for the next article which will be “What are Technology Roadmaps”
The author, KetanDeshpande, lives in Minnesota and writes about a variety of topics in his blog such as global economy, market and industry trends, successful strategies for businesses, and others. Leveraging his global strategic leadership experience from the manufacturing industry to offer insights in to how businesses can meet the sustainable growth and profitability goals.
Ketan Deshpande is also passionate about sustainability and renewable energy; he curates and shares latest updates in his blog posts. Recently the Southern Minnesota Municipal Power Agency(SMMPA) of Litchfield, Minnesota, endorsed Ketan Deshpande for an energy conservation project.
This blog also features memorable events, travel experiences and his favorite places to visit in the great state of Minnesota.
Blog by Ketan Sharad Deshpande, Anoka county, Minnesota, MN