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Ten Types of Innovation
Rey Lugtu
www.reylugtu.com
Credits:
Profit
Model
Network Structure Process Product
Performance
Product
System
Service Channel Brand Customer
Engagement
CONFIGURATION EXPERIENCEOFFERING
Ten Types of Innovation
The way in which you make money
From video rental to subscription
The way in which you make money
Selling the enduring part at low cost,
recurring disposable parts at a premium
Ad-Supported
Auction
Bundled Pricing
Cost Leadership
Disaggregated Pricing
Financing
Flexible Pricing
Float
Forced Scarcity
Freemium
Licensing
Metered use
Microtransactions
Risk Sharing
Scaled Transactions
Subscription
Switchboard
User-Defined
Premium
Connections with others to create value
Working with renowned external
designers to differentiate itself
Connections with others to create value
Alliances
Collaboration
Complimentary Partnering
Consolidation
Coopetition
Franchising
Merger/Acquisition
Open Innovation
Secondary Markets
Supply Chain Integration
Alignment of your talent and assets
Pioneered the “Community Owned Companies” model,
Local artisan owned and ran the companies
that supplied arts and handicrafts to Fabindia
Alignment of your talent and assets
Asset Standardization
Competency Center
Corporate University
Decentralized Management
Incentive Systems
IT Integration
Knowledge Management
Organizational Design
Outsourcing
Signature or superior methods for doing your work
Zara’s “fast fashion“ strategy moves its clothing
from sketch to shelf in record time
Signature or superior methods for doing your work
Ikea’s flat-pack furniture with no
variation by region or country
Signature or superior methods for doing your work
Crowdsourcing
Flexible Manufacturing
Intellectual Property
Lean Production
Localization
Logistics System
On-Demand Production
Predictive Analytics
Process Automation
Process Efficiency
Process Standardization
Strategic Design
Distinguishing features and functionality
OXO Good Grips cost a premium but its
“universal design” has a loyal following
Added Functionality
Conservation
Customization
Ease of Use
Engaging Functionality
Environmental Sensitivity
Feature Aggregation
Focus
Performance Simplification
Safety
Styling
Superior Product
Complementary products and services
Nike+ parlayed shoes, sensors, apps and
devices into a sport lifestyle suite
Complementary products and services
Complements
Extensions/Plug-Ins
Integrated Offering
Modular Systems
Product Bundling
Product/Service Platforms
Support and enhancements that
Surround your offerings
Free lifetime pressing at any of its
locations in the US
Added Value
Concierge
Guarantee
Lease or Loan
Loyalty Programs
Personalized Service
Self-Service
Superior Service
Supplementary Service
Total Experience Management
Try before Your Buy
User Communities
How your offerings are delivered
to customers and users
Nespresso locks in customers with its
useful members only club
How your offerings are delivered
to customers and users
Context Specific
Cross-Selling
Diversification
Experience Center
Flagship Store
Go Direct
Indirect Distribution
Multi Level Marketing
Non-Traditional Channels
On-Demand
Pop-up Presence
Representation of your offerings
and business
Virgin extends its brand into sectors
ranging from soft drinks to space travel
Brand Extension
Brand Leverage
Certification
Co-Branding
Component Branding
Private Label
Transparency Value Alignment
Distinctive interactions you foster
Apple’s WorldWide Developers
Conference Allows partners to
play with and provide feedback
Autonomy and Authority
Community and Belonging
Curation
Experience
Experience Automation
Experience Enabling
Experience Simplification
Mastery
Personalization
Status and Recognition
Whimsy and Personality
How do you apply these?
Understand the centre of gravity in your industry so
you can double down and do something differently!
Profit
Model
Network Structure Process Product
Performance
Product
System
Service Channel Brand Customer
Engagement
CONFIGURATION EXPERIENCEOFFERING
Three Innovation Shifts
Profit
Model
Network Structure Process Product
Performance
Product
System
Service Channel Brand Customer
Engagement
CONFIGURATION EXPERIENCEOFFERING
Business Model Shift
Types of innovation
Types of innovation
Profit
Model
Network Structure Process Product
Performance
Product
System
Service Channel Brand Customer
Engagement
CONFIGURATION EXPERIENCEOFFERING
Platform Shift
Types of innovation
Profit
Model
Network Structure Process Product
Performance
Product
System
Service Channel Brand Customer
Engagement
CONFIGURATION EXPERIENCEOFFERING
Customer Experience Shift
Types of innovation
Three Innovation Shifts
Understand the centre of gravity in your industry
so you can double down and do something
differently!
Innovation is NOT optional
Innovation is a discipline
Thank you

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Types of innovation