“The species that survive are not the strongest, nor the most intelligent, but those that adapt best to change.” This quote from Darwin about the evolution of the species seemed to foreshadow the context in which businesses operate today. The most crucial use of innovation is identifying the weaknesses that are holding your organization back from maintaining the proper margins. In this blog, we will share the four types of innovation and provide examples of companies that leveraged innovation to benefit their business.
“The implementation of a new or significantly improved product (good or service) or process, a new marketing method or a new organizational method in business practices, workplace organization or external relations.“ (oecd.org)
Incremental innovation, or continuous improvement, refers to improving an existing product or service.
The iPhone is an excellent example of incremental innovation, going from the iPhone 13 to the 14 and beyond.
Adjacent innovation is a typical example of a successful expansion. It refers to using existing capabilities (like technology or knowledge) to appeal to a new audience or enter a new market.
Uber is a great example of Adjacent innovation. Same platform, same people for Uber Eats
Disruptive innovation refers to the actions taken by a smaller company to shake up an industry by targeting its large, existing competitors’ overlooked segments.
Over time, the disruptive innovation party will accelerate and start taking over the main segments of the industry. When the adoption of the innovation by the main segment happens, we speak of disruptive innovation.
Netflix is a perfect example of disruptive innovation.
it is the creation of a brand-new product or service that nobody expected, and that tends to impose itself on the life of users.
Television and smartphones are radical innovations that have changed our daily lives.