DIFFERENT TYPES OF

INNOVATION
It is remarkable how many people are under the false assumption that
companies are either innovative or not. This is a very polarizing and
simplistic perspective that does not take into account the different types of
innovations that companies can and do pursue.
 THE FOUR TYPES OF INNOVATION:

• Incremental Innovation:

Incremental Innovation is the most

common form of innovation. It utilizes
your existing technology and increases
value to the customer (features, design
changes, etc.) within your existing market.
 Disruptive Innovation:
Disruptive innovation, also
known as stealth innovation,
involves applying new
technology or processes to your
company’s current market. It
is stealthy in nature since newer
tech will often be inferior to
existing market technology
 Architectural Innovation:
Architectural innovation is simply taking the
lessons, skills and overall technology and
applying them within a different market. This
innovation is amazing at increasing new
customers as long as the new market is
receptive. Most of the time, the risk involved
in architectural innovation is low due to the
reliance and reintroduction of proven
technology. Though most of the time it
requires tweaking to match the requirements of
the new market.
 Radical innovation:
Radical innovation is what we think of
mostly when considering innovation.
It gives birth to new industries (or
swallows existing ones) and involves
creating revolutionary technology.
The airplane, for example, was not the
first mode of transportation, but it is
revolutionary as it allowed
commercialized air travel to develop
and prosper.
SOURCES OF INNOVATION:

• What is source of innovation?

It is based upon bright ideas. Human mind thinks of new things that can
better fulfill an existing need. In this process he thinks of filling his needs
in new ways and by devising new products and mechanisms.
Demographics,
Our lifestyles can also be a source of innovation.
Peter F. Drucker, known as the father of modern
management, suggested that purposeful, systematic
innovation begins with the analysis of the opportunities and
classifies "Seven Sources of Innovative Opportunity".
Peter Drucker deeply believes that systematic innovation is
the necessity and that it can be inspired by the following
seven sources of innovative opportunities:
• THE UNEXPECTED:
The ever-changing business world is full of surprises. Yet, not only the
unexpected failures but also the unexpected success, or even events
that occur in the organization can trigger innovative ideas and become
the creative sources of innovation. Unexpected situations can have a
very powerful influence and can inspire an organization to gain
another, new, perspective on the situation.
• THE INCONGRUITY
When our reality doesn’t meet our expectations we can
discover new insights and gain new perspectives. Incongruity is
a dissonance between what is and what it is supposed to be. It
can be a great source of innovative ideas as it compares what is
and what everybody else assumes it to be. Of all incongruities,
the dissonance between perceived and actual customers’
expectations is maybe the most common one.
• INNOVATION BASED ON PROCESS NEEDS:
The weak spots in your organization workflows, processes and
systems provide practical opportunities for innovation.
Innovation based on process needs is a task-focused rather than
situation-focused. It improves the process that already exists,
redesigns existing, old processes and reinforces the weak links.
• CHANGES IN INDUSTRY STRUCTURE OR MARKET
STRUCTURE
As the business landscape evolves, every organization has to
adapt. Changes in industry shake-up businesses, yet they can
inspire people to explore and create new ideas as well.
Generally, industry or market structure is ever-changing and it
can create great opportunities for innovation in order for
organizations to adapt and adjust quickly.
• DEMOGRAPHICS:
Changes in demographics are defined as changes in population, size, age
structure, employment, educational status and income. They are the most
reliable indicators of future trends and offer diverse opportunities for
innovation. Each new generation demands new and unique products and
services. These changes affect the market as they determine the need for
products, the target population who are buying those products, as well as
the number of products being distributed.
• CHANGES IN PERCEPTION, MOOD AND MEANING:
With the growth of technology, there are significant changes in the way
people perceive the world. People change their perception about a
certain product, brand or even industry. This is basically the question "Is
the glass half full or half empty?". Changes in perception are based on
the mood rather than on the facts. Changing your perception from "half
empty" to "half full" opens up incredible innovation opportunities.
• NEW KNOWLEDGE, BOTHSCIENTIFIC AND NONSCIENTIFIC:

Every year new ideas are discovered and developed and a lot is added to the
existing knowledge base. Knowledge has always been a source of innovation
yet knowledge-based innovation has long lead time and convergence of
knowledge. Technological and scientific breakthrough are the source of
innovation that can’t be neglected. New knowledge can be applied in every
aspect of the organization, starting from learning more about emerging trends,
customer expectations, knowing how to use new technology, to improving
customer service and supply chain.
WHAT IS AN INNOVATION NETWORK?
O AN INNOVATION NETWORK IS AN ORGANIZATIONAL
STRUCTURE WITH WHICH ENTERPRISES
IMPLEMENT BUSINESS INNOVATION FASTER AND
MORE EFFICIENTLY. INNOVATION NETWORKS
SUPPORT CONTINUOUS IMPROVEMENT, THE IDEA
MANAGEMENT, AND THE INNOVATION
MANAGEMENT OF A COMPANY.
ADVANTAGES OF AN INNOVATION
NETWORK
O THE ESTABLISHMENT OF AN INNOVATION NETWORK
MAKES IT POSSIBLE TO INTRODUCE DIFFERENT
POINTS OF VIEW INTO THE DEVELOPMENT OF AN
INNOVATION, TO QUICKLY MAKE THE NECESSARY
RESOURCES AVAILABLE AND TO TRANSFER NEW
DISCOVERIES FASTER INTO A COMPANY OR
ORGANIZATION
 ESTABLISHING AN INNOVATION
NETWORK
O INNOVATION NETWORKS CAN BE BUILT WITHIN A
COMPANY OR BY INVOLVING EXTERNAL PARTIES.

THIS IS HOW YOU SET UP INNOVATION NETWORKS:

✓FIND INITIATORS
✓START SMALL
✓INFORM YOUR INNOVATION NETWORK REGULARLY
✓INVOLVE MEMBERS REGULARLY
✓EXPAND YOUR INNOVATION NETWORK STEP BY STEP
DECISION MAKING IN INNOVATION
MANAGEMENT