Types of Innovation
“Innovation is simply doing things differently and doing different things”
There are many ways to understand and define Innovation, one of them is by using the Innovation Matrix, which facilitates your understanding by classifying it based on two dimensions: the technology it uses (technology ‘Newness’) and the market it operates in (Impact on the Market). It doesn’t matter what industry your brand is in, one of the key trends is innovation. Have a look at these four innovation types and some examples of brands that inspire us.
Sustainable Innovation: a process where sustainable considerations, such as environmental, social and financial are integrated into the company system from idea generation through to R&D and commercialisation.
Case Study - LEGO
Lego set a new direction using innovation at the core to stay relevant in an age of videogames. Since 1999 Lego has adopted a Smart Licensing approach, which stays loyal to the very essence of the product, leverage its loyal and creative fan base at the same time that diversifies the audience.
Incremental innovation: a progressive improvement to existing products as a response to new customers’ needs. It focuses on prolonging the life of products and keeping them competitive. Incremental innovation is one of the most predictable innovations as it allows for growth with a minimal risk.
CASE STUDY - Gillette:
Gillette razors began with a simple one blade design, which has evolved with the years to multiple blades and different features to fit different segments of the market.
Disruptive innovation: innovation that does not attempt to bring better products to established customers in existing markets, rather, it disrupt that trajectory by introducing products and services that are not as good as the currently available products, but offers other benefits. Typically they are simpler, more convenient and less expensive products that appeal to new or less demanding customers.
CASE STUDY - AIRBNB
Airbnb started as low-end accommodation, by renting airbeds to visitors who couldn’t find hotel rooms. Today it represents a real threat to traditional hotels and travel vendors by offering a large range of options, from low-end rooms to luxury villas.
Radical Innovation: the ability to generate considerably more business and social value while significantly reducing the use of scarce resources by using revolutionary technology and new business models. It is about solving and even transcending the paradox of doing more with less. Could freelancers be the CMOs of the future?
CASE STUDY - JOHN DEERE
John Deere revolutionised the farm industry by integrating sensors into its tractors allowing Farmers to track their crops yield via sensor.