How to choose the most suitable type of innovation for your company?
Posted: Wed Jan 22, 2025 4:24 am
Selecting the right type of innovation depends on a number of factors, including the market you operate in, the profile of your customers, the resources available and the company's strategic objectives.
Assess business needs
The first step is to understand the specific needs of your business:
Are you looking to improve an existing product?
Do you want to optimize your internal processes?
Or are you thinking about completely transforming the way your business operates?
These questions help define which type of innovation is most suitable.
Understand the company's maturity
More established companies can benefit journalist email list from incremental innovations, while startups or companies looking to enter new markets can opt for disruptive innovations to create a competitive advantage.
Resources and capabilities
Innovation requires investment – whether in terms of money, time or human talent. Therefore, assessing available resources is essential. Small adjustments (incremental innovation) generally require fewer resources than a radical change (disruptive innovation).
Practical examples of the application of different types of innovation
Let's look at some practical examples to illustrate how each type of innovation can be applied.
Product Innovation: Apple
Apple is a classic example of product innovation. The launch of the iPhone was not just an incremental innovation over other smartphones at the time, but also a disruptive innovation that transformed the way people interact with technology.
Process Innovation: Amazon
Amazon has innovated its processes by automating and optimizing delivery logistics. The use of advanced algorithms and robotics in its fulfillment centers allows the company to deliver products more quickly and efficiently.
Assess business needs
The first step is to understand the specific needs of your business:
Are you looking to improve an existing product?
Do you want to optimize your internal processes?
Or are you thinking about completely transforming the way your business operates?
These questions help define which type of innovation is most suitable.
Understand the company's maturity
More established companies can benefit journalist email list from incremental innovations, while startups or companies looking to enter new markets can opt for disruptive innovations to create a competitive advantage.
Resources and capabilities
Innovation requires investment – whether in terms of money, time or human talent. Therefore, assessing available resources is essential. Small adjustments (incremental innovation) generally require fewer resources than a radical change (disruptive innovation).
Practical examples of the application of different types of innovation
Let's look at some practical examples to illustrate how each type of innovation can be applied.
Product Innovation: Apple
Apple is a classic example of product innovation. The launch of the iPhone was not just an incremental innovation over other smartphones at the time, but also a disruptive innovation that transformed the way people interact with technology.
Process Innovation: Amazon
Amazon has innovated its processes by automating and optimizing delivery logistics. The use of advanced algorithms and robotics in its fulfillment centers allows the company to deliver products more quickly and efficiently.