There are four types of innovations or Change:
1. Incremental Innovation: This type of innovation builds on an established knowledge base and steadily improves an existing product or service offering. It targets existing markets using existing technology. For example, the iPhone has undergone multiple iterations, with each new model offering a sleeker design, better camera, or improved speed. Another example is Gillette's razors, which are constantly upgraded with new features like extra blades, heated razors, and a pivoting head.
2. Disruptive Innovation: Disruptive innovation is when new technologies and products are created to serve an existing market. This type of innovation provides a more efficient and accessible alternative to what already exists in the market. For instance, Netflix disrupted the realm of video streaming, becoming the first choice for video watchers and leading to the bankruptcy of Blockbuster. Another example is Uber, which started a ride-sharing revolution with the launch of its peer-to-peer app, providing a more reliable, cost-effective, and customer-friendly alternative to traditional taxis.
3. Architectural Innovation: This type of innovation leverages existing technologies into new markets. It generally requires reconfiguring the components of a technology, altering the overall architecture of the product. For example, the smartwatch used existing cell phone technology and was repackaged into a watch, opening up a new market of purchasers. Another example is copiers and printers, which were reconfigured by Canon to be small and usable on desktops, creating a whole new market for small companies or families buying personal copiers or printers.
4. Radical Innovation: Radical innovation targets new markets by using new technologies. It draws on novel methods or materials and is derived either from an entirely different knowledge base or from recombination of existing knowledge bases with a new stream of knowledge. Examples of radical innovations include the introduction of the mass-produced automobile, airplanes, x-rays, and the internet. Recent radical innovations could include artificial intelligence, blockchain technology, and genome sequencing. These types of innovations typically require a lot of time and technological development before they're ready for mainstream markets. However, when executed successfully, it often means the beginning of a new era that affects many sectors and geographies.
Write in the comments below if you can think of more.
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