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10 Types of Innovation





Innovation is a key part of every business. 
The Ten Types of Innovation Framework was discovered in 1998 in an effort to find a common trend in 2000 examples of the best innovations.
Dell, Ford, Hertz, and Gillette were some of the businesses looked at.









Innovation is usually equated only with the development of a new product or technology but the highest value comes from the innovation across all ten types of innovation. 
The operations and interfaces of a business can be divided into three main categories:
A.      Configuration: Innermost operations that produce value from assets and resources
B.      Offering: Collection of core products and services  
C.      Experience: The customer facing elements of a business.



1st Type: Profit Model


This is about how the business will make money. Innovative profit models are focused on how to convert the main offerings of a business into valuable sources of cash. Premium pricing, subscription based, disaggregate pricing, and installed based profit models are some examples.



2nd Type: Network


Network innovations are about how we connect with other businesses to create value. It is a method for the firms to take advantage of other companies’ processes, technologies, offerings, and brands to harness their capabilities and assets. Mergers and acquisitions, Open Innovation, collaboration, and consolidation of multiple companies under the same market, are some of the examples.



3rd Type: Structure


Structure innovations focus on organizing a company’s hard, human, and intangible assets to create a highly productive working environment. Examples of structure innovation include IT integrated knowledge management systems to reduce the data redundancy, corporate universities, incentive systems, and decentralized management systems



4th Type: Process


Process Innovations are about how we use unique methods, such as patented or proprietary approaches, to produce our primary offerings and not adopting to the business as usual scenario. Process automation, lean production methods, crowdsourcing challenging work to semi-organized individuals, integrating predictive analytics, and flexible production systems are some examples of this innovation. 





5th Type: Product Performance


Product Performance innovations address the value, features, and quality of a company’s products and detail how we develop distinguishing features and functionalities of our products. The focus stays on easy to use offerings, added functionalities, and aggregation of multiple features into one product.



6th Type: Product System


These innovations aim to connect complementary products and services to create a robust and scalable offering of higher value. Examples include integrated offerings that combine discrete components into a complete experience, third party plugins that add functionality to our products and modular systems.





7th Type: Service


These innovations aim to amplify the value of our offerings, to make the products easier to use, and to reveal features and functionality that the customers might otherwise overlook. Categories include total experience management of the consumers throughout the product’s lifecycle, warranty and loyalty programs, try before you buy tactics, and lease and loan services.



8th Type: Channel


Channel Innovations are about how we deliver the offerings through diverse distribution channels to help us find new customers. Examples include go direct services such as e-commerce, flagship stores, on-demand service, and indirect distribution channels.



9th Type: Brand


Brand Innovations aim to represent our offerings and business uniquely. The aim is to ensure that customers recognize and remember our offerings when compared to those of competitors and substitutes. Examples include brand leveraging, co-branding, component branding, and the provision of products under private label.



10th Type:  Customer Engagement


This innovation focuses on how we foster compelling interactions with our customers. Examples include experience simplification, community creation for our customers, personalization of our offerings, and process automation to reduce the burden of repetitive tasks for our customers.
After studying all of the ten types of innovation, we produced a scorecard for Ham-Let Group’s innovation in all ten types. The number of innovations in each type was counted and we plan to compare these numbers with the innovation count next year to gauge the increase in innovations across all ten types.





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