Ten Types of Innovation | Larry Keeley

Summary of: Ten Types of Innovation: The Discipline of Building Breakthroughs
By: Larry Keeley

Introduction

Are you seeking ways to spark innovative breakthroughs in your organization? Look no further, as ‘Ten Types of Innovation: The Discipline of Building Breakthroughs’ by Larry Keeley explores the secrets behind game-changing innovation. Based on the extensive analysis of 2,000 innovations, this summary provides you with a deep dive into the 10 types of innovation, neatly categorized into three areas: configuration, offering, and experience. Get ready to broaden your understanding of how combining various types of innovation can bring meaningful and lasting impact to your organization.

10 Types of Innovation

The book reveals that innovation is viable new offering creation and shows how to achieve organizational innovation through the study of 2,000 innovations analyzed by the Doblin consultancy, leading to the unveiling of 10 innovation types through pattern recognition and analytical techniques. The majority of companies fail in innovation due to a lack of knowledge, but the book offers a guide to help companies navigate innovation successfully.

10 Types of Innovation

In his book, “The Ten Types of Innovation,” Larry Keeley outlines the 10 different types of innovation necessary for bringing about meaningful change. He categorizes them into three groups: Configuration, Offering, and Experience.

To achieve innovation and growth, a company must focus on at least five of the 10 types of innovation in these categories. The first category, Configuration, consists of four types: Profit model, Network, Structure, and Process. Profit model refers to a company’s business model – how they earn revenue. Companies like Next Restaurant have found innovative profit models such as selling tickets to customers who buy their meals before dining. Companies must also look at creating innovation networks that collaborate with external partners, as seen with Natura, a Brazilian cosmetics firm with an innovation network of 25 global universities. Innovations in the structure and process of a company also play a vital role in introducing innovation to a firm.

The next category is Offering, which includes two types of innovations: Product performance and Product system. Differentiated goods and services with added features and superior products can lead the sector and earn premium prices. Companies like OXO, whose Good Grips potato peeler sells for five times the cost of a standard peeler, is a good example. Product system innovation comes from quality supplementary products and services. Oscar Mayer, for example, packages crackers, meats, cheeses, and desserts into Lunchables boxes, creating portable school lunches saving parents time.

The final category is Experience, which encompasses four types of innovations, including Service, Channel, Brand, and Customer engagement. Service innovation is about providing superior service to customers. Companies like Zappos go out of their way to satisfy their customers’ needs, often securing competitive products when comparable products are unavailable. Channel innovation is vital and is about finding new ways to get products and services to market. Amazon’s free Whispernet customer service for Kindle users is an excellent example. Brand innovation assists customers in feeling like members of a special community, and Trader Joe’s is a great example of this. Finally, customer engagement means finding innovative ways to connect with customers. Apple, for example, provides its developers with early views of their new products to get feedback for improvement.

All in all, Larry Keeley’s book is a must-read for anyone looking to innovate. The ten types of innovation outlined are essential for meaningful change, and the author showcases ways that companies have successfully implemented these innovations across various industries.

Innovate Strategically

Learn how to innovate strategically by using at least five of the ten possible types to create something new.

Innovation is essential to remain competitive, but simply creating a new product is often not enough. Rivals can quickly copy it and release knockoff versions, leading to little competitive advantage. Instead, the key is to strategically utilize a mix of the ten types of innovation to create something truly unique. To do this, it is crucial to understand the value and nuances of each type.

Companies should de-emphasize product and technology and instead focus on other types of innovation, such as rethinking how to configure assets, build platforms, and provide fresh experiences. In addition, research is vital to understand what users want and to fulfill their wishes.

Utilizing at least five types of innovation can help to reinvent a category and outperform the competition. Firms that use more than five types have proven to be more successful than those that use fewer. For example, Google has innovated in eight out of the ten possible types, leading to its ongoing success.

The key takeaway is that focusing on a mix of various types of innovation can lead to breakthrough initiatives and long-term success.

Mastering Innovation

To foster innovation, a company must first perform an industry innovation analysis to spot new creative opportunities. The process involves scanning multiple sources, identifying areas of omission, and visualizing and assessing the results. Key forces of change must be identified while contrasting the present against future innovation themes. The 10 types of innovation are used as a diagnostic filter to be precise about the meaning of innovation. Pattern recognition aids in recognizing shifts in industries and markets. Making analytical results visual, companies can seek out areas for opportunities and blind spots.

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