What type of innovation are you talking about?

Hi Chuck, 

You have opened a big topic. Innovation in each company will mean different things. 

Corporations:

I have seen insurance companies who mainly use Excel for inputting data, analysing and even reporting to Board. Using software like Tableau will be innovation for them.

On the other hand, there are companies who try to implement in the majority of their processes RPA and AI.

Quite often I have seen companies who bought many different softwares and systems, however they don't speak with each other. Here innovation will be marrying the systems, single sign-on, transferring data easily between systems etc.

SMEs:

When we analyse small and medium companies, we will see that quite a big percentage of them lack any digital strategy, meaning any software implementation is an innovation. 

As I have said in the beginning- Innovation is a broad topic and it fully depends onto company and its culture. What I am curious to discuss is whether there is a cycle or sequence of phases that each company passes through. 

Andrew

Efficiency Innovation

Efficiency innovation is about exploring opportunities that improve the operational aspects of a company’s existing business model(s). They don’t change the business model in a substantial way. Typical examples include technologies that improve operations, distribution, or support, and process innovations that make an organization more effective.

Advantages

• Low risk and uncertainty
• Immediate impact
• Predictability
• Covers the entire range from small to large financial impact

Disadvantages

• No protection from disruption
• Doesn’t help position the company for the future

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Efficiency innovation can happen across the organization and at every level, ideally with the support of professional innovators.

Sustaining Innovation

Sustaining innovation is about exploring opportunities that build on top of a company’s existing business model to strengthen it and keep it alive. Typical examples of sustaining innovation are new products and services, new distribution channels, new support and production technologies, or geographical expansions.

Advantages

• Relatively low risk and uncertainty
• Short to the medium-term time horizon
• Substantial financial impact
• Helps remain competitive

Disadvantages

• Little to no protection from disruption

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Sustaining innovation requires dedicated innovation teams with strong support from or inside operating business units.

Transformative Innovation

Transformative innovation is the most difficult innovation. It’s about exploring opportunities outside of the traditional field of a company. This type of innovation usually requires a radical change or expansion of a company's business [removed]

Advantages

• Positions the company for the long-term
• Offers protection from disruption

Disadvantages

• High risk and uncertainty
• Rarely quick returns

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Transformative innovation requires dedicated and autonomous innovation teams outside of business units, with access to skills and resources from operating businesses.

What is your experience with innovation?