Directing Innovation

Together with incremental and radical innovation, these give an idea of your "innovation space" and help you decide where to innovate.

In addition to incremental and radical changes, innovation can be defined by direction -- by what is being changed. An organization can innovate its product, its process, its market position, or its business model. Together with incremental and radical innovation, these give an idea of your "innovation space" and help you decide where to innovate.

The most obvious areas of innovation are in what your produce and how you produce it. Product or service innovation can mean improving existing models -- such as producing the latest CD player -- or introducing something new -- such as the first MP3 player. Process innovation can involve improving current processes -- reducing waste, increase efficiency -- or changing the way you operate -- such as switching from paper to digital correspondence.

ACTION POINT: Consider opportunities for innovating your products, processes, market position or business model.