I recently read the book Ten types of innovation by Larry Keeley. Before reading I didn’t even know there could be more than one way to define innovation. It makes sense though to approach your innovation in line with your strategy and end goals.
Larry starts by defining the framework.
Configuration innovation types ( focussed on innermost workings of the organisation and its system). They are :
– profit
Looks at how we make money that is different from competitors? Do we have multiple revenue streams? Looking at our fixed and variable costs and how to innovate to create a higher gross margin. Can we generate cash quickly?
-network
Looks at how we work with others to create value. Who do we partner with? Collaborate with? Allow others to use our services etc?
– structure
How is our org structure set up? Is it unique or unusual? Are we known for attracting top talent? do we use our hard assets in different ways to others.
-process
How we do our work. What are we uniquely skilled at? Are our running costs lower than our competitors ? Do we have our own processes, framework, methodologies?
Offering innovation types are focused on your core products or services and are:
– product performance
What makes us different? Do we produce something superior to other competitors? Do our products have unique features? Are our products simpler and easier to use? Do our products captivate our customers? Do our products address specific niches?
– product system
How we complement our products and services? Do we offer package services? Can we interface with other companies products or services? Do our products or services interact in multiple ways?
Experience innovation types are focused on more customer facing elements of the organisation and are:
– service
How we support the value of our products and services? Do our customers rave about us? Where can we improve in our customer interactions? How do we make it easy for customers to use how products and services? What do we offer around warranties and guarantees? Do we help our customers connect as a community and enhance their experiences?
– channel
How we deliver to our customers? Do we deliver in challenging and different ways to other competitors? Do customers tell others about their time with us? Do we use different channels in complementary ways? How do our partners help sell our products or services?
– brand
How we represent our company? Do we have a unique and distinct identity? Do others use our brand? Do our customers see themselves as part of community around our brand?
– customer engagement
How we foster interactions? Do we take the complex and make it easy for our customer? Do our customers recognise our services ? do our services have a life of their own? Do customers talk about how our interactions changed their lives? How our services / products became integral to their lives?
“Mix and match innovation types for greater impact” – Larry Keeley
Steps to use the types effectively
- Understand the types
- De-emphasise relevance on products or tech (easiest copied)
- Think about categories as well as types ( think outside the box- focus where your competitors are not)
- use the types that matter most to your industry (do the research and identify gaps.)
- understand what your users really need
- Use enough types to make a difference (5 or more)
“By being clear about where and how you will innovate you massively increase your odds of success “
Start with where you and your competitors are.
Identify a few innovation types to make a difference to start.
Have a few more you want to try next.
You also need to understand your level of ambition E.g do you want to change the known, change the boundaries or change the game?
Larry also talks about how to shift between the 3 categories and how to choose the right shift as well as lots of examples and stories and tactics for each innovation type as well as installing innovation into your organisation. This book is a great resource for any business.
mylifenotesweb.wordpress.com 