The 3 Types of Innovation: Product, Process, & Business Model - Differential
Dec 21, What's the innovation process and what steps should you go through to The more complex a product gets in a regulated industry, the more . their biggest challenges were, they pointed to the relationship between R&D and. In this day and age, that means that new, innovative products must keep pace with the for developing your own processes along with some tips from our experts. improve the relationship a company has with its distributors, or increase or. Jan 16, There are three general categories of innovation: product, process, and business model. There are several different ways a company can innovate; in this retail distribution channel and developing direct relationships.
You could innovate by introducing new technology, techniques or working practices - perhaps using better processes to give a more consistent quality of product. If research shows people have less time to go to the stores, you could overhaul your distribution processes, offering customers a home-delivery service, possibly tied in with online and telephone ordering. If your main competitor's products have a reputation for being cheap and cheerful, rather than trying to undercut them on price you could innovate by revamping your marketing to emphasise the quality of your merchandise - and consider charging a premium for them.
Planning innovation Some innovative ideas may just come to you out of the blue. However, you should ideally have: Innovation will not only improve the chances of your business surviving, but also help it to thrive and drive increased profits.
There are lots of practical ways of assessing whether your ideas have profit potential: Assess the competition Find out who your competitors are and where they operate.
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- Use innovation to grow your business
- The Innovation Process: A Step-by-Step Guide
Use the Internet and advertising sources such as the Yellow Pages to find out about their products, prices and operating culture.
This can give you an overview of their selling points, as well as any areas you might be able to exploit. For example, if the competition is focused on value for money, you might want to emphasise the quality of your product or service.
The 3 Types of Innovation: Product, Process, & Business Model
Search for business listings nationwide on the YellowPages. Study market or industry trends Awareness of the climate in which your business is operating will help you to plan. You can find a lot of information about your industry on the Internet.
Business and trade magazines will also feature useful articles.
Product vs Process Innovation
Build a relationship with your customers It's not enough simply to know who your customer base is. You need to communicate effectively with them as well. Communication involves not only listening to their needs but also actively observing their behaviour around current products and services and generating ideas on how you can make improvements.
Involve your suppliers and other business partners Pooling your resources with your suppliers or other business partners will help to produce and develop creative ideas. Potential partnerships can also be developed through business networking opportunities. Next, consider what taking a particular innovative step could mean for your business.
Suppliers, business partners and business network contacts can all make valuable contributions to the creative process, as well as providing support and encouragement. Your employees are also a vital asset in generating innovative ideas. To get the most from them, you need to create an innovative environment and encourage creative thinking. Steps to promote innovation Make sure you have processes and events to capture ideas.
The Innovation Process: A Step-by-Step Guide
For example, you could set up suggestion boxes around the workplace or hold regular workshops or occasional company away days to brainstorm ideas. Create a supportive atmosphere in which people feel free to express their ideas without the risk of criticism or ridicule. Encourage risk taking and experimentation - don't penalise people who try new ideas that fail.
Promote openness between individuals and teams.
Good ideas and knowledge in one part of your business should be shared with others. Teamwork, newsletters and intranets can all help your people share information and encourage innovation.
Of the three types of innovation, process is typically the lowest-risk. This process change not only simplified vehicle assembly but shortened the time necessary to produce a single vehicle from 12 hours to 90 minutes. Recently, Differential built a mobile sales dashboard for Grupo Bimbo. The baking company has 65 manufacturing plants and 2.
As a result, the executive team members travel a lot, meeting with their direct reports around the world. Business Model Innovation Business model innovation does not necessarily imply changes in the product or even in the production process, but in the way as it is brought to the market.
Often, the very capabilities or processes that have been optimized to make a company successful and profitable will become the targets for transformation. In some cases, these changes can threaten elements of the company identity and come into conflict with brand expectations or promises. Whereas both product and process innovation can be incremental and moderate, business model innovation is almost always radical, risky, and transformative. When talking about business model innovation, without a doubt, names like AirBnB, Uber, or Spotify will come up.
Because of these powerhouses, many might assume only startups are capable of massive business model innovation. IBM has managed changes in customer offers from mainframes to personal computers to technology services.
Amazon found a new channel to the customer through technology by eliminating the traditional retail distribution channel and developing direct relationships.