More on this in our Series on Innovation Basics
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Several types of innovation have been defined depending on how innovation is considered and its context. Below are a series of table listing all sorts of proposed types of innovation.
Product, Process, Business Model or Social
| Innovation Type | Description |
|---|---|
| Product Innovation | Involves the development and introduction of new or improved products. Iconic examples include the iPhone, transforming industries. |
| Process Innovation | Goes beyond tangible products to enhance organizational processes. Involves streamlining production, optimizing supply chains, etc. |
| Business Model Innovation | Redefines how a company creates, delivers, and captures value. Uber’s peer-to-peer model is an example of transforming traditional services. |
| Social Innovation | Addresses societal challenges by introducing novel solutions. Examples include microfinance initiatives and community-driven projects. |
Types of Innovation based on what is the object of the innovation.
Innovation Matrix
| Types of Innovation | Description |
|---|---|
| Sustaining Innovation | Focuses on enhancing existing capabilities within established markets. – Involves well-defined problems and corresponding skill domains. – Strategies include strategic roadmapping, traditional R&D labs, acquisitions, and design thinking. |
| Breakthrough Innovation | Addresses challenging, precisely defined problems. – Necessitates exploration of unconventional skill domains. – Open innovation strategies prove effective in exposing problems to diverse skill sets. |
| Disruptive Innovation | Challenges conventional practices when the competitive landscape shifts. – Emphasizes innovation in business models. – Lean startup methods and tools like the business model canvas are invaluable. |
| Basic Research | Pioneering innovations stem from discovering new phenomena. – Examples include Einstein’s groundbreaking discoveries and Turing’s universal computer. – Access to world-class research is available to enterprises of all sizes through various programs. |
Types of Innovation based on Greg Satell’s Innovation Matrix
Below are a list of the definition and useful links to each type
1. Product Innovation
Product innovation is perhaps the most familiar face of innovation. It involves the development and introduction of new or improved products. Think of iconic examples like the introduction of the iPhone, revolutionizing not just the smartphone industry but altering the way we connect and consume information.
How Does The Diffusion Of Innovation Theory Impact Product Adoption?
2. Process Innovation
Innovation extends beyond tangible products to the very methods by which they are created. Process innovation involves reimagining and enhancing the processes and methods within an organization. This could be streamlining production, optimizing supply chains, or adopting cutting-edge technologies to boost efficiency.
What Is Process Innovation?
Do Not Confuse: Innovation Of Process Vs Process Of Innovation
3. Business Model Innovation
Business model innovation is about redefining the fundamental ways a company creates, delivers, and captures value. Consider how companies like Uber transformed the traditional taxi model by introducing a tech-driven, peer-to-peer approach, revolutionizing transportation services globally.
What Is Business Model Innovation?
How Can Businesses Adapt To Changing Markets Through Model Innovation?
What Are The Outcomes Of Successful Business Model Innovation?
4. Social Innovation
Innovation isn’t confined to corporate boardrooms; it has a profound impact on society. Social innovation addresses societal challenges by introducing novel solutions. Examples range from microfinance initiatives empowering entrepreneurs in developing countries to community-driven renewable energy projects.
Can Social Innovation Solve Global Challenges?
Social Innovation: Connecting Communities And Transforming The EU
5. Sustaining Innovation
Sustaining innovation is characterized by a focus on enhancing existing capabilities within established markets. This type of innovation deals with well-defined problems and the corresponding skill domains required to solve them. Strategies employed in sustaining innovation encompass various approaches such as strategic roadmapping, traditional research and development (R&D) labs, acquisitions, and the application of design thinking methodologies.
6. Breakthrough Innovation
Breakthrough innovation is geared towards addressing challenging and precisely defined problems. This type of innovation often requires the exploration of unconventional skill domains. Open innovation strategies play a crucial role in breakthrough innovation, as they effectively expose problems to diverse skill sets, fostering creative solutions to complex issues.
7. Disruptive Innovation
Disruptive innovation comes into play when there is a shift in the competitive landscape, challenging conventional practices. This type of innovation emphasizes a transformative approach to business models. Tools and methods such as lean startup principles and the business model canvas are invaluable in navigating the uncertainties associated with disruptive innovation.
8. Basic Research
Basic research serves as the foundation for pioneering innovations, involving the discovery of new phenomena. Examples of such breakthroughs include Einstein’s groundbreaking discoveries and Turing’s development of the universal computer. Access to world-class research is made available to enterprises of all sizes through various programs, contributing to the continuous advancement of knowledge and innovation.
About the authors
Dr. Alan Mitchell is a leading expert in innovation strategy, as a guest writer for our upcoming Innovation Strategy Series. With his extensive experience and practical insights, Dr. Mitchell will provide valuable guidance and thought-provoking content. Stay tuned for his expert insights as we explore the dynamic world of innovation strategy together.