A short YouTube talk that explains the "Ten Types of Innovation" framework, which groups ten innovation types into three areas: Configuration (profit model, network, structure, process), Offering (product performance, product system), and Experience (service, channel, brand, customer engagement). The speaker emphasizes that no single type is universally most important; top firms innovate across multiple types and link product/service innovation to an effective, discovery-based sales process.
Chapters
How do you tell your R and D team that while you value their work, their innovation on product performance matters least to customers? That was the topic of one of my recent conversations. The executive I was with has had this very conversation and was able to demonstrate how for his business, a tech company, Customer engagement was the most impactful type of innovation Product performance and customer engagement are two of the ten types of innovation. A framework that explores patterns of innovation within industries, to identify innovation opportunities and to evaluate how firms are performing against competitors. The ten types are split into three the first area is configuration how the company is organized. Configuration includes four types of innovation. Number one, the profit model, how the organization turns its value into profit how to make money network the value that's created by working with others to gain processes, technology or or brand credibility. Number three structure how you organize the talents and the assets within your company and number four process how a company goes about producing its products and services its core operations. The second area is offering the core product elements and how the product is organized and integrated. The area of offering includes two types of innovation. The first one is product performance, the distinguishing quality, feature set, capability or functionality of a company's product and the second one is product system, how you create additional value by adding other products and services to yours and how you combine multiple products to create significantly more value. The third and last area is experience, how the company interacts with customers and within experience. There are four more types of innovation. The first one is service support and enhancements that surround your offerings. Number two channel how you connect with your customers. Number three brand. Your brand can be a very powerful innovation in itself and number four customer engagement, how you understand and then leverage the desires and needs of your customers. The discussion as to which type or which area of innovation is most important is pointless. The best answer it depends and research shows that the most successful companies innovate in more than one area at any given moment and likely touch all 10 areas over time. Successful companies know that product and service innovation and is forever linked to a strong sales process, especially to the effectiveness of consultative selling skills. Also, an effective discovery based sales process can propel innovation throughout the organization because ultimately its result is to persuade. Innovators must persuade from the time they they get an idea to the time the idea goes to market. Interim or fractional sales leaders come with the experience of a few innovation cycles. Talk to us to find out how they can help you.
