We can learn 15 types of innovations for growth market, mature market, and declining market. And we can read the actual company example for each innovation type.

The greater the success of the past, the greater the resistance to changing direction with the next innovation.

3 objectives of innovation

• Differentiation
• Neutralization
• Productivity

If we fail to make innovation, the effect of innovation is wasting resources.

15 innovation types

There are total 15 types of innovations and those are categorized in 4 innovation model. The interesting thing is that innovations are not for the growth market and core business. The innovations can be applied to the declining market and context business. 

It’s important to understand the market position of your product if it’s growing or declining and if it’s a core or a context business to consider appropriate innovation type.

Product leadership in the growth market

• Disruptive innovation
• Application innovation
• Product innovation
• Platform innovation

Customer intimacy for volume operation in the mature market 

• Line Extensions innovation
• Product Enhancements innovation
• Marketing Programs innovation
• Customer Experience innovation

Operation excellence for the complex systems in the mature market

• Value Engineering innovation
• Integration innovation
• Process innovation
• Value Migration innovation

Category renewal in the declining market

• Organic renewal
• Acquisition renewal
• Harvest and Exit

Resource redistribution

The problem is not that the company can’t make an innovation. The problem is that the company can’t redistribute their resource appropriately after an innovation.

Core & Context 

The Core is the innovation to create the differentiation

The Context is everything else, not the source of differentiation.

A method for coping with innovation and commoditization at the same time is to extract the resources from context and reinvest them in the core.

Mission-Critical or Core?

Sometimes we misunderstand mission-critical work as a core business.

We tend to spend time on mission-critical work. According to the 80/20 principle, the core business is only 20%.

I’m a part of the resource and interested in resource shifting thought described in this book.

Please read this book to check the detail. 

Here is the link to the author’s page so you can check his other book.

Thank you for reading this post.