Dealing with Innovation: 2
Geoff explained three different categories of innovation…
Product Leadership, Customer Intimacy, and Operational Excellence.
The diagram below shows which stage in the company/product/service life cycle these may appear.
I’ll share the different types of innovation Geoff outlined from the diagram.
Disruptive – Create a new category, build the value chain to serve it, and ride its adoption to success. Example – Skype
Application – Take an established technology or product line into a new market where it cans serve unmet needs. – Amazon
Product – Take share in an established market with a new offer that dramatically outperforms current market leaders. – Google
Platform – Stimulate and participate in next-generation growth markets by opening up your installed base to partners. – Microsoft
Line Extension – Gain market share by modifying a mass-market offer to appeal to an underserved market segment. Example – Nike
Enhancement – Gain margin share by creating greater perceived value at the surface of an existing offer. – Mont Blanc
Marketing – Gain customer preference through differentiated sales and communication methods. – Apple
Experiential – Gain customer preference through differentiating the experience of the offer and its delivery. – Starbucks
Value Engineering – Take market share by being first to the next price-elasticity inflection point. Example – HP
Integration – Protect and extend market share by eliminating the complexity of managing many disparate elements. – SAP
Process – Win share by leveraging productivity gains from reengineering industry-standard business practices. – Dell
Value Migration – Win margins by migrating to a new and more highly valued role in the value chain. – IBM
Material is © 2006 TCG Advisors, LLC