TYPES OF INNOVATIONS IN BUSINESS

Breakthrough Innovation

Breakthrough innovations are innovation that leads to major scientific breakthrough. They often establish the platform on which future innovation in an area are developed. They are usually very few. Breakthrough innovations include such ideas as the computer, the air plane and the internet. 

Technological Innovation

Technological innovation are in general not at the same level as scientific discovery, but they create technological advancement in product and market areas. Examples include jet plane, personal computer, voice and text messaging.  

Ordinary Innovation

This type of innovation occurs most frequently. Ordinary innovation comes from market analysis and they extend a technological innovation into a better product or service or one that has a different, usually a better market appeal. One unique characteristics of ordinary innovation is that the market has a stronger effect on the innovation (market pull) than the technology (technology pull)

Areas of Innovation in Business includes:

Product improvement:

Continuous improvements, making the  product more:

  • efficient, effective
  • leveraging existing core technology
  • useful or user friendly
  • integrated with other products, technologies, or systems
  • valuable to users

Process improvement: Make processes:

  • simpler
  • faster
  • more accurate
  • more reliable
  • less expensive
  • more integrated

New business models:

Restructure the nature of how business is done to serve the customer better and

  • make it easier to do business
  • create more integrated products and services
  • devise better ways to be profitable
  • use resources in a new way

Market extension:

Develop new products and services to:

  • support Existing Customers
  • Market Bases who buy our current products
  • facilitate product/technological adoption and create value from usage
  • introduce new services & value streams

Socio-organizational: Design new human relationships to:

  • increase results (strategic alliances & value networks)
  • reorient or restructure human interaction (Facebook, employee ownership, diversity of thought)
  • enable people to interact differently with technology

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