Innovation

Overview page.

Typology of Innovation

1.

"* Price-driven innovation focuses mainly on cost efficiency and strives toward having the lowest prices on the market. Examples of this may be different low-price airlines (like Norwegian or Sterling).

• In research or technology-driven innovation the product emerges from the availability of new technology principles and devices. And the aim here is to gain a technological advantage over the competitors by being the first to introduce these new principles in the market. We find examples of this in the medical industry.

• Third, we have user-driven innovation where the innovation process is about exploiting the knowledge about the customer when trying to answer explicit and immediate needs in the market. The focus here is to develop a product or service which meet these demands in a better way than the product or service did before."

(http://www.openp2pdesign.org/blog/archives/155)

Original source: [1]

2. Jean Russell:

“Disruptive Innovation

Here, we are looking at game-changing innovation. These innovations offer an unexpected new value proposition. This type of innovations requires: deep creativity, long term market building, and has trouble creating market (because people don’t even know they want it yet).

To be disruptive is deep creativity – coming up with something that no one else is doing or knows they need. They aren’t inward facing: “how do we do what we do better?” They aren’t outward facing: “how do we do something better than what others do?” They involve lots of random play in a nonlinear process. Attention focuses on where there is complacency or “accepted wisdom” that no one else is questioning in the market. Highly emergent, networking is everything. To be disruptive, you must see a striking new perspective on a existing problem. To win the market by being disruptive you need to execute on a bold plan. To be successful, you have to invite people to make a trade off in what they think is valuable. You create a different value proposition where that market validates the trade off as an improvement.

Combinatory Innovation

Welcome the the world of mashup innovation. These innovations take something that is working in some other domain and transport it into a new domain or they take existing offers and bundle them in better ways. This type of innovation requires: broad awareness outside market zone and short-term market building.

To be combinatory, innovators look outside their domain of known expertise for ideas that work. Partly emergent, you have to be able to see what is not there yet. This is a world of allegory. Find systems like your system and use what works there. Alternately, take several things that work and combine them in new and more effective ways. The value proposition is enhanced: more, wider attributes.

Efficiency Innovation

These innovations focus on refinement. They offer iterative improvement on existing technologies by reducing waste. These types of innovation require: engineering creativity and competitive market building.

To be efficiency innovators, look for ways to refine what is. This is about control and limitation. What about what is there now is not critical? What about what exists really matters and what can be left behind? Remove what is not highest value adding. What would a simpler way to do it be? The value proposition stays the same, it is offered with better speed/cost/options." (http://thrivable.net/2011/10/innovation-types/)

Key Innovation Trends

1. Innovation is becoming diffuse: Diffuse Innovation
2. Innovation is becoming social, socialized: Socialization of Innovation
3. Innovation is becoming "user-centered": User-centered Innovation
4. Innovation depends on Communities: Role of Communities in Innovation

Also:

1. The Power Laws of Innovation
2. Micro-Innovation

Discussion topics=

1. Autonomous vs Systemic Innovation: the Open Development model of Open Source Software communities is particularly appropriate for autonomous innovation, less so for systemic innovation.

Examples

1. Cooperative Innovation at Aventis
2. Collaborative Innovation at Michelin

Key Books to Read

1. Democratizing Innovation. Erik von Hippel.
2. Open Innovation
3. Innovation Happens Elsewhere

Listen and watch

1. Clayton Christensen on Open Source and Innovation in Business

Policy

1. Charles Leadbeater on Three Key Policy Reforms for Mass-based Innovation
2. Ross Dawson on Innovation in Business

Miscellaneous

1. Social Innovation Conversations
2. Open Standards - Open Source - Open Innovation
3. Direction of Innovation Graph
4. Collaborative Innovation Networks
5. Major Sources of Innovation