Connect with us

Technology

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

Published

on

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.

Click for Comments

Technology

Mapped: The World’s Top 50 Science and Technology Hubs

This map explores the world’s top 50 science and technology hubs based on the Global Innovation Index 2023 data.

Published

on

This map explores the world’s top 50 science and technology clusters, based on data from the Global Innovation Index 2023.

The World’s Top 50 Science and Technology Hubs

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

In 2023, the world experienced another wave of science and technology (S&T) innovation, from the introduction of the first over-the-counter birth control pill in the U.S. to the stunning growth of ChatGPT and artificial intelligence.

This map explores the world’s top 50 science and technology hubs leading these innovations based on data from the Global Innovation Index 2023. Hubs were ranked by their combined share of international patent applications and scientific publications.

East Asia Dominance in S&T

The world’s five most significant science and technology hubs are in East Asia.

The top-ranked Tokyo-Yokohama cluster made up just over 10% of all patent applications between 2018-2022.

ClusterCountry/EconomyPatent ApplicationsScientific Publications
Tokyo-Yokohama🇯🇵 Japan127,418115,020
Shenzhen-Hong Kong-Guangzhou🇨🇳/🇭🇰 China/Hong Kong113,482153,180
Seoul🇰🇷 South Korea63,447133,604
Beijing🇨🇳 China38,067279,485
Shanghai-Suzhou🇨🇳 China32,924162,635
San Jose-San Francisco🇺🇸 U.S.47,26958,575
Osaka-Kobe-Kyoto🇯🇵 Japan38,41351,948
Boston-Cambridge🇺🇸 U.S.18,18476,378
San Diego🇺🇸 U.S.23,26120,928
New York City🇺🇸 U.S.13,83874,849
Nanjing🇨🇳 China7,143113,488
Paris🇫🇷 France15,17661,692
Wuhan🇨🇳 China6,25089,756
Hangzhou🇨🇳 China10,75562,924
Nagoya🇯🇵 Japan17,73616,091
Los Angeles,🇺🇸 U.S.11,55644,058
Washington, DC–Baltimore🇺🇸 U.S.5,52576,039
Daejeon🇰🇷 South Korea12,27525,552
Xi'an🇨🇳 China1,78686,937
London🇬🇧 Great Britain5,98159,068
Seattle🇺🇸 U.S.11,47220,322
Munich🇩🇪 Germany10,24824,239
Qingdao🇨🇳 China7,28639,745
Chengdu🇨🇳 China2,04667,334
Cologne🇩🇪 Germany7,46634,286
Amsterdam–Rotterdam🇳🇱 Netherlands4,23052,864
Taipei–Hsinchu🇹🇼 Taiwan3,90752,752
Houston🇺🇸 U.S.8,47524,636
Stuttgart🇩🇪 Germany9,34214,874
Tel Aviv–Jerusalem🇮🇱 Israel7,26824,219
Moscow🇷🇺 Russia2,03655,086
Chicago🇺🇸 U.S.5,76332,343
Singapore🇸🇬/🇲🇾 Singapore/Malaysia4,86136,803
Tehran🇮🇷 Iran24963,113
Philadelphia🇺🇸 U.S.5,39032,309
Tianjin🇨🇳 China1,26753,680
Changsha🇨🇳 China1,14952,768
Stockholm🇸🇪 Sweden6,06919,984
Minneapolis🇺🇸 U.S.6,62515,375
Hefei🇨🇳 China2,54938,974
Eindhoven🇳🇱 Netherlands7,9825,339
Melbourne🇦🇺 Australia2,12640,056
Berlin🇩🇪 Germany3,62430,464
Chongqing🇨🇳 China1,65141,412
Frankfurt am Main🇩🇪 Germany5,41018,590
Sydney🇦🇺 Australia2,53933,695
Raleigh🇺🇸 U.S.3,05730,206
Madrid🇪🇸 Spain1,58038,849
Zürich🇨🇭 Switzerland3,75924,437
Milan🇮🇹 Italy2,57831,077

The first American cluster on the list, the San Francisco Bay Area, is home to major tech companies such as Adobe, eBay, Google, and PayPal.

Along with Cambridge in the United Kingdom, the San Francisco Bay Area is one of the most S&T-intensive clusters relative to overall population density.

For the first time, China topped the list of countries with the highest number of clusters among the top 100, having 24 total. The United States follows, with 21 clusters, then Germany with nine.

In addition, nearly every Chinese cluster rose in the rankings compared to last year, with only Beijing falling by one place.

São Paulo (Brazil); Bengaluru, Delhi, Chennai, and Mumbai (India); Tehran (Islamic Republic of Iran); Istanbul and Ankara (Türkiye); and Moscow (Russian Federation) are the only middle-income economy clusters outside China.

According to the Global Innovation Index, the U.S. leads in research and development (R&D) expenditure, followed by China, Japan, Germany, and the Republic of Korea.

Continue Reading
NOVAGOLD. Pure Gold. Precious Opportunity.

Subscribe

Popular