Innovation Types

There are different forms of innovations that exist in many areas of the economy, whether as a completely new product, a new process, new business models or in form of social innovations. What these kind of innovations mean in detail is described in the following:

Product Innovations are either introducing entirely new products to the market, products such as e-bikes or remote-controlled drones, or they are significantly improving an existing product, for example the first cordless phones.

Process Innovations attempt to optimize processes so that costs and lead times can be reduced. The most well-known process innovation certainly represents working on the assembly lines. In times of digitization a suitable example for a process innovation could be online ticketing or self-check-in at the airport.

Innovations related to Business Models are characterized by the development of completely new areas of responsibilities. This leads for example to the opportunity to open up completely new business areas. Online dating platforms or downloading music from the internet could be mentioned as examples of the recent past.

Social Innovations should, in general, have a beneficial effect for the public, that is in fact the increase of living standard. This happens mainly through reforms or legal rules introduction. Examples for innovations in this area include the introduction of the 5-day working week, the right to vote or social foundations, such as the health care system.

Dealing with the Different Types of Innovations in aumentoo

We see different types of innovation levels and each one of these levels will either improve, change or turn your customers' lives completely upside down. From a company's point of view, each of these cases faces a different risk and a different fear of change, which must be evaluated and properly managed.
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Improvements

This is the most basic level, where you improve the way something is done. This could be done by reducing the number of steps to complete a task. It’s not disruptive and it’s not transformative, but it is an improvement of the current situation.

Typical tasks that have to be done by the innovation management team:
Investigate current offerings
Identify improvements
Search for internal and external improvement opportunities
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Transformation

A transformation opens the door for constantly changing user habits and subtly introducing new and more efficient ways of operating.

Typical tasks that have to be done by the innovation management team:
Monitor technology trends
Integrate other business units in the innovation process and secure a productive and interactive working atmosphere
Risk Management
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Disruption

Disruptive innovations describe industry-changing inventions that impose major challenges to competitors and to the whole industry. Like, for example, the introduction of the computer has greatly affected typewriter manufacturers. When it comes to radical innovations, it is important to recognize the trend at an early stage and to align the business orientation to this. This is not possible without knowing and understanding the pain points of the customers.

Typical tasks that have to be done by the innovation management team:
Constantly question the status quo
Deal with risks
Manage expectations of the eco system
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