For most people, innovations are small improvements or additions to existing products, processes and services. For others, innovations may be revolutionary technological inventions or business models that change the industry.
To learn about these innovation types and to know a lot more about the subject of innovation, you could take up innovation courses either online or offline.
Below are the types of innovation.
1. Incremental innovation
This type of innovation involves increasing concepts, products, or services that are phased, gradual, and sustainable in the existing market.
With Incremental Innovation, the new products are only slightly better than previous product or service versions and only in small changes to existing product formulations or service delivery methods.
Products can be made smaller, more user-friendly or more attractive without changing the basic functions of the product, and services can be made more efficient through continuous improvement.
2. Disruptive innovation
Disruptive innovations are theories related to concepts, products, or services that create new value chains by entering existing markets or creating completely new markets.
Disruptive innovations are initially less effective when measured using traditional value metrics, but have different aspects that are evaluated by small market segments.
Such innovations can often turn non-customers into customers, but not necessarily meet the needs and preferences of core customers, at least not yet.
What makes disruptive innovation difficult is that established organizations are truly rational when making decisions relating to their existing business.
3. Sustaining innovation
Sustaining innovation is the opposite of disruptive innovation because it exists in the market today and instead of creating new value networks, existing ones are improved and expanded to meet customer needs.
As with incremental innovations, the support metrics for product innovation increase slightly with each iteration, reducing errors. Newly updated products may be more expensive and have higher margins than before if they appeal to more demanding high-end customers with better performance than before.
However, it can be cheaper if it leads to a greater amount and therefore higher absolute profits.
4. Radical innovation
Radical innovation is rare because it has characteristics similar to disruptive innovation, but differs in the way that it uses revolutionary technology and new business models at the same time.
It even offers solutions to needs and problems that we didn’t know we had and changed markets or even the whole economy.
Although radical innovations are rare, there have been more of them in the past.
Technological innovations such as PCs and the Internet are examples of radical innovations that have changed the way the world works and communicates.
5. Product innovation
Product innovation is perhaps the most common form of innovation and is related to improving the nature and characteristics of the product. Different components of the previously produced product can also be used.
Product innovation is always real, can involve fundamental new technologies, or can build combinations of existing technologies in new ways, even though they may not involve technology at all.
Product innovation can be a new product that has never been seen before. Rotation widgets, or can be the latest version of existing products, e.g. a second-generation wireless headset or Amazon Echo.
6. Service Innovation
Service innovation is a concept, product or service process that is significantly improved in new or existing markets. For example, this could be a new client interaction or distribution channel, a system that improves the transmission process, or a new solution in the client interface.
The way you serve customers is a great way to differentiate yourself, generate more value for them, and generate more revenue for your business.
A big part of a successful business is that it makes your customer’s life easier. The better you meet the needs and expectations of customers, the better your future.
Uber is an example of an innovative service company that has created growth beyond its core business.
7. Process innovation
This process combines the skills, technology, and structure with which products are produced or services are provided.
Process innovation usually refers to the adoption of new or better production or shipping methods. It can also refer indirectly to company products and services, for example in the form of an HR support or funding process.
Process innovation can occur through the use of new technology or improved process methods and is often done to save time and money or to serve customers better. They are often new technologies, devices or software, and cultural or structural changes may often be needed.
The final product usually does not change during the innovation process, but the method of spending the product increases.
8. Technological innovation
Technology as a source of innovation can be identified as a critical success factor to increase market competitiveness.
Technological innovations include new or improved technologies, such as new types of machinery or technological changes in relation to products, processes or services.
For example, when it comes to incorporating technology into the manufacturing process, it enables automation, which leads to higher levels of production, lower unit costs and more efficient use of materials – which reduces variability and leads to more consistent product quality.
9. Business model innovation
In all its simplicity, the business model is the way companies work and make money. It consists of core values and resources, strategies, core channels, and target customers, to name just a few.
Business model innovation is a fundamental change in the way companies provide value to their customers or differentiate them from the market.
In practice, this often happens through the development of new pricing mechanisms, sources of income or sales channels, but not limited to this.
The challenge for innovation in business models is that skills and processes that are optimized for company success become targets of transformation.
To create a viable new business model, you usually need to change the fundamental decisions that your company is working on. In other words: work on disruptive innovations.
10. Marketing innovation
For innovation to be successful, people need to find it and then benefit from it. The main objective of marketing innovation is to open new markets or increase market share.
Innovation is usually seen as marketing innovation if it significantly changes the “traditional” marketing mix (4P: price, product, advertising, and location) of the industry concerned.
The ability to connect with your customers is key, and there is always room for improvement in customer relationships and engagement. Due to ever-evolving technology and customer preferences, new marketing innovations are needed to promote new and existing products and services.
By combining it with innovative marketing methods, you can enhance this customer relationship in ways they don’t even expect.
11. Architectural innovation
Architectural innovations describe the reconfiguration of existing product technologies that bring improvements in the way components, some of which are not necessarily innovative, are combined together.
Some examples of architectural innovation are computer network systems and flexible manufacturing systems, where the main components of a product remain the same, but the relationship between these components and their relationships with one another changes less risky than other types of innovation because of the function of technology has been proven.
In this way, you don’t need to invest time or money to test the functionality of this technology component in practice. You just need to make sure they work together.
12. Social innovation
Social innovation is a new practice or technological invention that aims to better meet social needs rather than existing solutions. Such innovative solutions can be provided or funded by public or commercial entities.
There are many reasons why social innovation is important. For example, improving working conditions, providing more education, developing communities, or improving population health.
Takeaways
Reading this blog post is just the first step to understanding and exploiting the endless possibilities offered by innovation. Get the right training on innovation management or register to study innovation courses.
Although some companies want to focus on cutting-edge disruption technology and change business models, even the most radical innovations are the result of continuous small improvements. You can still make a difference, even if you only focus on improving your core business.
