Types of Innovation

...the types and degrees of innovation.


The innovation compass can be used to illustrate the types of degrees of innovation. Examples of the types and degree are:

• Radical Business Model Innovation - Apple's iTunes and iPod systems, which changed the music industry.
• Incremental Business Model Innovation - Rolls Royce's after sales support that emphasized service and support.
• Radical Product Innovation - White LED lighting that led to a shift in energy efficiency.
• Incremental Product Innovation - The first flat beds on transatlantic business class airline routes.
• Radical Process Innovation - Online banking and insurance aide the delivery of financial services automatic and cheaper.
• Incremental Process Innovation - NHS Direct in the UK, which began offering health advice over the telephone.
• Radial Market Innovation - Low-cost airlines that made flying available to a whole new market of flyer's.
• Incremental Market Innovation - Low-cost single use shampoo packets for low-income Indian households.

ACTION POINT: Look across markets, products, process's and the business model for areas of innovation.