lundi, mai 18, 2009

Where does innovation applies?

Innovations are not only technical, but they can be also marketing related for instance. I found that Professor Mohan Sawhney had the best approach for describing the areas where innovations can occur. He lists 4 main areas:
  • Product Innovation - WHAT
  • Customers Innovation - WHO
  • Process Innovation - HOW
  • Channel Innovation - WHERE

These 4 main innovation areas can be mapped to further sub-areas:

The way innovation is managed in some famous companies is then measured against these areas and sub-areas, in the paper Professor Sawhney wrote. He uses an "innovation Radar" for innovation measures.

Just as an illustration of this "Object of innovation" chapter, I would like to comment this quote from Steve Jobs, CEO from Apple:

"Pretty much, Apple and Dell are the only ones in this industry making money. They make it by being Wal-Mart. We make it by innovation." Steve Jobs

Dell innovated and excelled primarily in the "Channels area". "Being Wal-Mart" is also innovation, but not technical innovation as usually understood. By the way, innovation at Apple is also not only technical innovation. Apple stores are also a mix of "Channels" and "Customer experience" innovations.