While preparing a presentation on "Creating an Environment of Innovation," I've been studying several innovation models. Geoffrey Moore writes about "Four Innovation Zones" in his new book "Dealing with Darwin." The zones build on the concept of value disciplines first written about in the book "The Disciplines of Market Leaders" by Michael Treacy and Fred Wiersema. The zones/disciplines include product leadership, customer intimacy, operational excellence and category renewal. They present a number of innovation possibilities for companies in growth, mature or renewal zones. A chart from Moore's book presents opportunities you may want to consider. They are documented as follows:
Growth Product Leadership Zone |
Mature Customer Intimacy Zone |
Disruptive Innovation |
Line-Extension Innovation |
Application Innovation |
Enhancement Innovation |
Product Innovation |
Marketing Innovation |
Platform Innovation |
Experiential Innovation |
Mature Operational Excellence Zone |
Renewal Category Renewal Zone |
Value-Engineering Innovation |
Organic Innovation |
Integration Innovation |
Acquisition Innovation |
Process Innovation |
Harvest and Exit |
Value-Migration Innovation |
Less complex are three types of innovation defined by James Andrew from BCG. To quote: "Andrew says companies can boost the odds of their success by choosing the most appropriate of three innovation models. The first and most traditional is the integrator model, in which a company assumes responsibility for the entire innovation process from start to finish, including the design, manufacture and sale of a new technology. In general, large, well-heeled companies --Intel, for example --do best with this model. Second is the orchestrator approach, in which function such as design are kept in-house, while others, including manufacturing or marketing, are handed off to a strategic partner. This model works best when speed is of the essence or if a company wants to limit its investment. When Porsche couldn't meet demand for its popular Boxster sports coupe in 1997, for example, it turned to Finnish manufacturer Valmet rather than open another costly plant. Finally, Andrew says, there's the licensor approach, in which, for example, a software company licenses a new operating system to a series of PC manufacturers to ensure that its product gets the widest distribution at the lowest possible investment cost. That's you, Microsoft."
Both of the authors present excellent recommendations for innovation models and types that are useful for your organization. Taking a step back, I recommend reviewing your own corporate strategy and plan for strategic execution. Is the strategy based on a growth or mature market model, and does it differentiate your products and services for competitive advantage in the global marketplace? Next, develop your innovation strategy. Build on the models and knowledge available in the marketplace. Finally, determine the best technology to support the business and innovation strategy models for the company. Analyzing and documenting each of these critical components will help you then identify the resources and skills needed to accomplish your goals for strategic execution. Establishing an environment of disciplines for defining strategy, then innovation, followed by technology alignment and hiring or staffing with the best of resources, will help you achieve and maintain global competitive advantage.
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