Based on research work done by Doblin, a subsidiary of Deloitte
Many people equate innovation with the development of new products. But coming up with new products is just one way to innovate. After studying more than 2,000 business innovations throughout history, Doblin discovered that the majority of breakthroughs did not come from technical/engineering inventions or amazing discoveries. Instead, innovations resulted from within a framework of 10 dimensions and now, anyone can use this framework to develop their own innovations…
The Ten Types framework is structured into three color-coded categories. The left side of the framework is internally focused and distant from customers; as you move toward the right side, the innovation is apparent and obvious to end users. In other words, the left of the framework is backstage; the right is onstage. Let’s consider each of the categories going from left to right:
CONFIGURATION (Innovation Types 1-4)
Innovation Type 1 – Profit Model – This is the way you make money. For example, Netflix revolutionized the video rental industry by using a flat, monthly subscription model.
Innovation Type 2 – Network – This is leveraging the connection with other entities to add value. For example, Target works with influential furniture designers and Ford Motor Company built a complete supply chain to have more control.
Innovation Type 3 – Structure – This is about structuring the organization or the way employees work for additional advantage. Examples are 3M and Google who encourage employees to allocate a percentage of their time to new ideas outside their main work. The Gmail project at Google came to be because of this as did the Post-It notes at 3M.
Innovation Type 4 – Process – This is about a unique way of working that lends particular advantage over the competition. . Examples are Zara fashion retailer coming up with new designs faster than most competitors due to a streamlining of the sketch to stitch process. Another example is Dell allowing customers to customize their PCs during the online ordering process.
OFFERING (Innovation Types 5-6)
Innovation Type 5 – Product Performance – This is about the product/service offering some distinctive features or performance. Porsche has become a global brand in the automotive industry because it offers distinctive looks, power and speed.
Innovation Type 6 – Product System – This is about creating an ecosystem of complementary products. A great example of this is Nike which started with running shoes for men, then for women, then sports apparel etc.
EXPERIENCE (Innovation Types 7-10)
Innovation Type 7 – Service – This is where the organization offers a service that can delight customers. Shoe retailer Zappos spends a lot of time thinking about how to “deliver WOW through service“. This becomes particularly important in the case of service organizations such as banks where differentiating between product offerings is hard.
Innovation Type 8 – Channel – This is about creating a distinctive channel for a particular customer segment. Grameen Bank in Bangladesh did exactly this to make small loans available to those who had little or no access to traditional channels of microfinance.
Innovation Type 9 – Brand – This is about leveraging the brand to full advantage. An example of this is Virgin with presence in diverse sectors ranging from airlines, to retail and even space travel.
Innovation Type 10 – Customer Intimacy (Engagement) – This is finding new ways of interacting with customers. An example of this is 1-800-Flowers launching its AI-powered online gift concierge using IBM Watson. This allows customers to make purchase on their own terms, whilst receiving personalized gift recommendations. Now 1-800-Flowers is able to have the same interactions it was having with its customers in store, except now this is happening online, 24/7 on a global scale.
When you understand the Ten Types of Innovation framework, it becomes possible for you to explore how you can mix and match across these 10 dimensions to create the innovation you need for your organization and clients.