There are 10 types of innovation, which are centered on three main approaches. The first one is to configure the corporation’s working business system. This is followed by offering a product or service, or a combination of both to end up with a customer experience that is originated by innovative strategies.
These types of innovation will identify breakthroughs and will help a company focus on new efforts. Analyzing the competitive environment will generate potential opportunities to do something different and to impact the market and customers.
The 10 types of innovation are divided in the following way:
The first approach is to configure:
1- Profit Model
This is how a company will focus all their products, offerings or other efforts turn into profits. Once the products or services are offered and priced on the market, revenue is expected to be collected. This model is one of the most used by companies as it will give significant value to it.
For decades, it has been important to connect with other parties to contribute and provide extra value. A network is made from alliances, offerings, processes, brands, channels, and other actions so that companies can negotiate to take advantage of other parties.
All these innovations will benefit business interests and capabilities. These collaborations can last for a short or long period and can be formed between different tools (PR actions, social media platforms, ex-coworkers or any other mutual interests) or between companies.
It is quite important to organize and align uniquely, the company’s talents, and assets. These will give and add value. Structure innovations are defining from the different departments of the company, such as Human Resources, IT, R&D, marketing, and sales. They will create, produce, and promote working actions that the competitors can’t equalize.
According to The Cambridge Dictionary, process means a series of actions that are taken to achieve a result. Methods are normally settled since the beginning of a company, and start with the main core business. The main objective is to innovate them to create a special and unique method that no other competitor can replicate.
The second approach is offering:
5- Product Performance
For this type of innovation, it is very important to understand what is being offered to the market. Here we mention which are the features, characteristics, and functionalities that make the product or service special and distinguished from others.
Product performance innovation mention the quality, updates, and line extensions that add substantial value. It is quite important to focus on this type, as it is the most copied by competitors. It’s recommended to deliver long-term competitive advantages.
6- Product System
Product System innovations help companies building ecosystems that captivate and delight customers. The products and services are now connected to create a robust and scalable system. Focus on the way of managing and creating value on the offerings will make a difference to defend against competitors.
The third and last approach is experience:
Service innovation is in charge of making the product interact with the customer. The customer can try, test, explore, and enjoy the experience and functionalities of the product. Here, companies get information about the performance opportunities to fix problems and make the offering even more attractive. A good experience will make the customer come back again and again.
The customer is always looking to interact with the product or service of interest. It could be in a traditional way as a physical store or by a digital channel. The product or service must be offered in perfect conditions when a customer wants it, with an exceptional and delightful experience and cost.
Awareness is the knowledge that something exists in the present time based on information or experience. Make sure to create brand communication and advertising to build recognition, awareness, insights, and engagement of the product or service. Once the customer remembers the brand, it will be able to distinguish the offering from competitors. The brand will give value to the offering and the company.
10- Customer Engagement
Customer Engagement innovations will make your users fall in love with your product or service. Also, it will make a company understand the ambitions of what a customer is looking for to create even more delightful and magical engagements and experiences.
The 10 types of innovation, was written to make a company’s team be updated with successful, innovating, and effective methods to achieve objectives.
BLACKBEAR® uses all these techniques to make your experience delightful. If you would like to get innovation ideas click here and discover how we can help you!
If you want to know more about the 10 types of innovation click here to watch the book’s sample.