The Ten Types of Innovation model, developed by Doblin, provides a comprehensive framework for understanding and implementing innovation across various dimensions of a business. It categorizes innovation into ten distinct types, each representing different ways a company can create value and differentiate itself in the market.
1. business model innovation
Definition: This type involves changing the way a company creates, delivers, and captures value. It focuses on how a business operates and makes money.
Real-world example: Netflix initially started as a DVD rental service but transformed its business model into a subscription-based streaming service. This shift not only disrupted the video rental industry but also created a new standard for content consumption.
Application for your startup:
- Assess your current revenue model.
- Explore alternative revenue streams, such as subscription services or freemium models.
- Consider partnerships or collaborations that could enhance your business model.
2. network innovation
Definition: This type involves leveraging external partnerships and networks to enhance capabilities and create new opportunities.
Real-world example: Starbucks has built a strong network of suppliers and partners to ensure high-quality coffee and create a unique customer experience. This network includes coffee farmers, suppliers, and technology partners.
Application for your startup:
- Identify potential partners who can provide complementary skills or resources.
- Build relationships with industry influencers or thought leaders.
- Create a network of customers, suppliers, and partners to drive growth and innovation.
3. structure innovation
Definition: This type focuses on changing the internal organization and processes to improve efficiency and effectiveness.
Real-world example: Google’s use of flexible workspaces and a flat organizational structure encourages collaboration and innovation among employees. This structure allows for more agility and responsiveness to new ideas.
Application for your startup:
- Evaluate your organizational structure and processes.
- Implement changes that improve communication and decision-making.
- Create a culture that supports innovation and continuous improvement.
4. process innovation
Definition: This type involves improving or creating new processes that enhance efficiency and effectiveness.
Real-world example: Toyota’s implementation of the Lean Manufacturing system revolutionized production processes by focusing on reducing waste and improving quality. This process innovation significantly increased operational efficiency.
Application for your startup:
- Analyze your current processes to identify inefficiencies.
- Implement process improvements or new methodologies to streamline operations.
- Use tools like Lean or Six Sigma to enhance process performance.
5. product performance innovation
Definition: This type involves improving the features, quality, or functionality of a product.
Real-world example: Apple’s continuous improvement of the iPhone’s features, such as camera quality and processing power, demonstrates product performance innovation. Each new iteration provides enhanced capabilities and meets evolving customer needs.
Application for your startup:
- Regularly update and enhance your product or service.
- Gather feedback from users to identify areas for improvement.
- Invest in research and development to stay ahead of competitors.
6. product system innovation
Definition: This type focuses on creating new combinations of products or integrating multiple products into a cohesive system.
Real-world example: The ecosystem of Apple products, including iPhone, iPad, Mac, and Apple Watch, works seamlessly together. This product system innovation creates a unified user experience and enhances customer loyalty.
Application for your startup:
- Consider how your products or services can be integrated to provide a better user experience.
- Develop complementary products or services that enhance the overall value proposition.
- Explore partnerships that allow for the creation of a cohesive product system.
7. service innovation
Definition: This type involves creating or improving services to enhance customer satisfaction and engagement.
Real-world example: Amazon Prime’s delivery and subscription services offer customers added value through fast shipping, exclusive content, and other benefits, significantly enhancing the overall service experience.
Application for your startup:
- Identify areas where you can improve or expand your service offerings.
- Focus on enhancing customer support and engagement.
- Use customer feedback to refine and innovate your service delivery.
8. channel innovation
Definition: This type focuses on finding new ways to deliver products or services to customers.
Real-world example: Warby Parker’s direct-to-consumer model for eyewear, combined with an online try-on feature, disrupted the traditional retail model and improved the customer purchasing experience.
Application for your startup:
- Evaluate your current distribution channels and explore alternative methods.
- Implement new technologies or platforms to reach customers more effectively.
- Consider direct-to-consumer or online sales models if applicable.
9. brand innovation
Definition: This type involves creating a strong brand identity and differentiating your brand in the market.
Real-world example: Nike’s brand innovation focuses on building a strong emotional connection with customers through its “Just Do It” campaign and endorsements from athletes, creating a powerful and recognizable brand image.
Application for your startup:
- Develop a clear and compelling brand identity that resonates with your target audience.
- Invest in marketing and communication strategies that reinforce your brand values.
- Use storytelling and consistent messaging to build brand loyalty.
10. customer engagement innovation
Definition: This type focuses on new ways to engage and interact with customers to build stronger relationships.
Real-world example: Sephora’s use of augmented reality (AR) in its mobile app allows customers to virtually try on makeup, enhancing the shopping experience and increasing customer engagement.
Application for your startup:
- Explore new technologies or platforms to enhance customer interactions.
- Implement personalized marketing strategies to engage with customers more effectively.
- Use data and analytics to understand customer preferences and tailor your engagement strategies.
By applying the Ten Types of Innovation model, you can build a robust innovation strategy that leverages various aspects of your business to create value and stay competitive.