10 Types of Innovation: The Art of Discovering a Breakthrough Product
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10 Types of Innovation: The Art of Discovering a Breakthrough Product

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10 Types of Innovation Infographic

The Art of Discovering Breakthrough Products

As venture capitalist Peter Thiel once put it, “competition is for losers”.

It’s inevitable that every company must be out there battling for market share, but you don’t really want to be in a situation where the competition is so stiff that any potential upside is eroded away in the process—―a scenario known as perfect competition in economics.

To avoid perfect competition, companies must strive to build an economic moat that gives them a sustainable competitive advantage over time. While these protective moats can arise from a number of different sources, in today’s information economy they most often arise from the power of innovation.

But where does innovation come from, and is there a universal framework that can be applied to help consistently make big breakthroughs?

The 10 Types of Innovation

In today’s infographic, we showcase the culmination of years of in-depth research from Doblin, an innovation-focused firm now owned by Deloitte.

After examining over 2,000 business innovations throughout history, Doblin uncovered that most breakthroughs don’t necessarily stem from engineering inventions or rare discoveries.

Instead, they observed that innovations can be categorized within a range of 10 distinct dimensions—and anyone can use the resulting strategic framework to analyze the competition, to stress test for product weaknesses, or to find new opportunities for their products.

Here are the 10 types of innovation:

#Innovation TypeDescription
1.Profit ModelHow you make money
2.NetworkConnections with others to create value
3.StructureAlignment of your talent and assets
4.ProcessSignature of superior methods for doing your work
5.Product PerformanceDistinguishing features and functionality
6.Product SystemComplementary products and services
7.ServiceSupport and enhancements that surround your offerings
8.ChannelHow your offerings are delivered to customers and users
9.BrandRepresentation of your offerings and business
10.Customer EngagementDistinctive interactions you foster

From Theory to Practice

What does innovation look like in practice?

Let’s see how well-known businesses have leveraged each of these 10 types of innovation in the past, while also diving into the tactics that modern businesses can use to consistently make new product breakthroughs:.

Innovation Types #1-4: “Configuration”

According to Doblin, the first four types of innovation center around the configuration of the company, and all the work that happens “behind the scenes”.

Although innovation types in this category are not directly customer-facing, as you can see in the examples below, they can still have an important impact on the customer experience. How your company and products are organized can have a crucial downstream effect, even enabling innovations in other categories.

Configuration innovation types

Two of the most interesting examples here are Google and McDonald’s. Both companies made internal innovations that empowered their people to make important advancements further on downstream.

In the case of McDonald’s, the franchisee insight that led to the introduction of the Egg McMuffin spearheaded the company’s entire breakfast offering, which now accounts for 25% of revenues. Breakfast is also now the company’s most profitable segment.

Innovation Types #5-6: “Offering”

When most people think of innovation, it’s likely the offering category that comes to mind.

Making improvements to product performance is an obvious but difficult type of innovation, and unless it’s accompanied by a deeply ingrained company culture towards technical innovation, such advancements may only create a temporary advantage against the competition.

This is the part of the reason that Doblin recommends that companies focus on combining multiple areas of innovation together—it creates a much more stable economic moat.

Offering innovation types

Apple has a reputation for innovation, but the product ecosystem highlighted above is an underappreciated piece of the company’s strategy. By putting thought into the ecosystem of products—and ensuring they work together flawlessly—additional utility is created, while also making it harder for customers to switch away from Apple products.

Innovation Types #7-10: “Experience”

These types of innovation are the most customer-facing, but this also makes them the most subject to interpretation.

While other innovations tend to occur upstream, innovations in experience all get trialed in the hands of customers. For this reason, intense care is needed in rolling out these ideas.

Experience innovation types

In the early days of the internet, online shipping was precarious at best—but Amazon’s introduction of Amazon Prime and free expedited shipping for all members has been a game-changer for e-commerce.

Executing on such a promise was no small task, but today there are 150 million users of Prime worldwide, including some in metro areas who can get items in as little as two hours.

Making Innovations Happen in Your Organization

How can organizations approach the 10 types of innovation from a more tactical perspective?

One useful resource is Doblin’s free public list of over 100 tactics that correspond with the aforementioned framework.

The one-pager PDF provides a range of typical dimensions for approaching each type of innovation. In essence, these are all different ways you could consider when trying to differentiate your product or service—and at the very least, it provides a useful thought experiment for managers and marketers.

For those interested in learning more on this topic, Doblin also has a highly-rated book as well as other accessories that leverage the above framework.

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The World’s Most Used Apps, by Downstream Traffic

Of the millions of apps available around the world, just a small handful of the most used apps dominate global internet traffic.

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The World’s Most Used Apps by Downstream Traffic Share

The World’s Most Used Apps, by Downstream Traffic

Of the millions of apps available around the world, just a small handful of the most used apps dominate global internet traffic.

Everything connected to the internet takes bandwidth to view. When you look at something on your smartphone—whether it’s a new message on Instagram or the next few seconds of a YouTube video—your device is downloading the data in the background.

And the bigger the files, the more bandwidth is utilized. In this chart, we break down of the most used apps by category, using Sandvine’s global mobile traffic report for 2021 Q1.

Video Drives Global Mobile Internet Traffic

The biggest files use the most data, and video files take the cake.

According to Android Central, streaming video ranges from about 0.7GB per hour of data for a 480p video to 1.5GB per hour for 1080. A 4K stream, the highest resolution currently offered by most providers, uses around 7.2GB per hour.

That’s miles bigger than audio files, where high quality 320kbps music streams use an average of just 0.12GB per hour. Social network messages are usually just a few KB, while the pictures found on them can range from a few hundred KB for a low resolution image to hundreds of MB for high resolution.

Understandably, breaking down mobile downstream traffic by app category shows that video is on top by a long shot:

CategoryDownstream Traffic Share (2021 Q1)
Video Streaming48.9%
Social Networking19.3%
Web13.1%
Messaging6.7%
Gaming4.3%
Marketplace4.1%
File Sharing1.3%
Cloud1.1%
VPN and Security0.9%
Audio0.2%

Video streaming accounts for almost half of mobile downstream traffic worldwide at 49%. Audio streaming, including music and podcasts, accounts for just 0.2%.

Comparatively, social network and web browsing combined make up one third of downstream internet traffic. Games, marketplace apps, and file sharing, despite their large file sizes, only require one-time downloads that don’t put as big of a strain on traffic as video does.

A Handful of Companies Own the Most Used Apps

Though internet traffic data is broken down by category, it’s worth noting that many apps consume multiple types of bandwidth.

For example, messaging and social network apps, like WhatsApp, Instagram, and Snapchat, allow consumers to stream video, social network, and message.

Even marketplace apps like iTunes and Google Play consume bandwidth for video and audio streaming, and together account for 6.3% of total mobile downstream traffic.

But no single app had a bigger footprint than YouTube, which accounts for 20.4% of total global downstream bandwidth.

CategoryTop Apps (Category Traffic)Category Traffic Share
Video StreamingYouTube47.9%
Video StreamingTikTok16.1%
Video StreamingFacebook Video14.6%
Video StreamingInstagram12.1%
Video StreamingNetflix4.3%
Video StreamingOther5.0%
Social NetworkingFacebook50.5%
Social NetworkingInstagram41.9%
Social NetworkingTwitter2.4%
Social NetworkingOdnoklassniki1.9%
Social NetworkingQQ0.7%
Social NetworkingOther2.9%
MessagingWhatsApp31.4%
MessagingSnapchat16.5%
MessagingFacebook VoIP14.3%
MessagingLINE12.1%
MessagingSkype4.1%
MessagingOther21.6%
WebGoogle41.2%
WebOther58.8%

The world’s tech giants had the leading app in the four biggest data streaming categories. Alphabet’s YouTube and Google made up almost half of all video streaming and web browsing traffic, while Facebook’s own app, combined with Instagram and WhatsApp, accounted for 93% of global social networking traffic and 45% of messaging traffic.

Traffic usage by app highlights the data monopoly of tech giants and internet providers. Since just a few companies account for a majority of global smartphone internet traffic, they have a lot more bartering power (and responsibility) when it comes to our general internet consumption.

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Visualizing the Critical Metals in a Smartphone

Smartphones can contain ~80% of the stable elements on the periodic table. This graphic details the critical metals you carry in your pocket.

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Visualizing the Critical Metals in a Smartphone

In an increasingly connected world, smartphones have become an inseparable part of our lives.

Over 60% of the world’s population owns a mobile phone and smartphone adoption continues to rise in developing countries around the world.

While each brand has its own mix of components, whether it’s a Samsung or an iPhone, most smartphones can carry roughly 80% of the stable elements on the periodic table.

But some of the vital metals to build these devices are considered at risk due to geological scarcity, geopolitical issues, and other factors.

Smartphone PartCritical Metal
Touch Screen indium
Displaylanthanum; gadolinium; praseodymium; europium; terbium; dysprosium
Electronicsnickel, gallium, tantalum
Casingnickel, magnesium
Battery lithium, nickel, cobalt
Microphone, speakers, vibration unit nickel, praseodymium, neodymium, gadolinium, terbium, dysprosium

What’s in Your Pocket?

This infographic based on data from the University of Birmingham details all the critical metals that you carry in your pocket with your smartphone.

1. Touch Screen

Screens are made up of multiple layers of glass and plastic, coated with a conductor material called indium which is highly conductive and transparent.

Indium responds when contacted by another electrical conductor, like our fingers.

When we touch the screen, an electric circuit is completed where the finger makes contact with the screen, changing the electrical charge at this location. The device registers this electrical charge as a “touch event”, then prompting a response.

2. Display

Smartphones screens display images on a liquid crystal display (LCD). Just like in most TVs and computer monitors, a phone LCD uses an electrical current to adjust the color of each pixel.

Several rare earth elements are used to produce the colors on screen.

3. Electronics

Smartphones employ multiple antenna systems, such as Bluetooth, GPS, and WiFi.

The distance between these antenna systems is usually small making it extremely difficult to achieve flawless performance. Capacitors made of the rare, hard, blue-gray metal tantalum are used for filtering and frequency tuning.

Nickel is also used in capacitors and in mobile phone electrical connections. Another silvery metal, gallium, is used in semiconductors.

4. Microphone, Speakers, Vibration Unit

Nickel is used in the microphone diaphragm (that vibrates in response to sound waves).

Alloys containing rare earths neodymium, praseodymium and gadolinium are used in the magnets contained in the speaker and microphone. Neodymium, terbium and dysprosium are also used in the vibration unit.

5. Casing

There are many materials used to make phone cases, such as plastic, aluminum, carbon fiber, and even gold. Commonly, the cases have nickel to reduce electromagnetic interference (EMI) and magnesium alloys for EMI shielding.

6. Battery

Unless you bought your smartphone a decade ago, your device most likely carries a lithium-ion battery, which is charged and discharged by lithium ions moving between the negative (anode) and positive (cathode) electrodes.

What’s Next?

Smartphones will naturally evolve as consumers look for ever-more useful features. Foldable phones, 5G technology with higher download speeds, and extra cameras are just a few of the changes expected.

As technology continues to improve, so will the demand for the metals necessary for the next generation of smartphones.

This post was originally featured on Elements

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