Argumentative

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Creativity, Innovation & Design

INNOVATION TYPOLOGIES

Prepared by Dr Gerrit de Waal

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Three regions: Low, medium, high

(Menguc, Auh, & Yannopoulos, 2013)

This typology is also useful for portfolio

management

Horizon 1

Horizon 2

Horizon 3

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The Three Horizons of Growth

Initiatives related to the core business

Development of new opportunities in existing and emerging markets

Creation of new, transformational businesses

(Anonymous, 2009)

70%

25%

5%

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Another categorisation

(Barbosa & Vilntis, 2017)

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Yet another perspective…

(Tidd et al., 2005)

degree

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Incremental innovations aka improvements

A series of small improvements or upgrades made to a company's existing products, services, processes or methods. The changes implemented through incremental innovation are usually focused on improving an existing product's development efficiency, productivity and competitive differentiation.

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Incremental innovations more examples

Cost reduction, Repositioning or Improvement of current product/service

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Substantial innovation Substantial innovation is one that provides a substantial degree of added value and/or newness to a company. It’s an innovation that has the potential to create brand new business opportunities for the company (and perhaps even for other companies, e.g., advertising), grants the company a new competitive advantage and perhaps even places that company as one of the leaders in its field (if it wasn’t already).

https://blog.hootsuite.com/facebook-algorithm/

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Another example of substantial innovation (New to the Firm, Addition to or Major Revision of existing lines)

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Radical Innovation • Radical innovation, concerned with the exploration of new

technology, is fundamentally different from incremental innovation that is concerned with exploitation of existing technology.

• Radical innovation is a product, process, or service with either unprecedented performance features or familiar features that offer potential for significant improvements in performance and cost.

• It creates such a dramatic change in processes, products, or services that they can potentially transform existing markets or industries, or create new ones.

(Leifer, Mcdermott, O'Connor, Peters, Rice, & Veryzer, 2000)

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Only 10% of innovations are radical

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Radical innovation Mregen: Rapid ACL Recovery

Recovering from knee surgery can be slow and painful. The Mregen reduces recuperation time by using a magnetic field to stimulate muscle recovery, reducing the healing process, typically four months, by a month.

https://thehealthcaretechnologyreport.com/mregens-breakthrough-technology-for-rapid-acl-recovery/

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Radical innovation

Martin Jetpack

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References Anonymous. (2009). Enduring Ideas: The three horizons of growth. Retrieved from McKinsey & Company - Strategy & Corporate Finance website: https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our- insights/enduring-ideas-the-three-horizons-of-growth

Barbosa, A. A. R., & Vilntis, M. (2017). Innovation and construction management in Brazil: Challenges of companies in times of quality and productivity. Paper presented at the Conference Series Materials Science and Engineering.

Leifer, R., McDermott, C. M., O'Connor, G. C., Peters, L. S., Rice, M., & Veryzer, R. W. (2000). Radical Innovation: How Mature Companies Can Outsmart Upstarts. Boston, Massachusetts: Harvard Business School Press.

Menguc, B., Auh, S., & Yannopoulos, P. (2013). Customer and Supplier Involvement in Design: The Moderating Role of Incremental and Radical Innovation Capability. Journal of Product Innovation Management, 31(2), 313-328. doi:https://doi.org/10.1111/jpim.12097

Tidd, J., Bessant, J., and Pavitt, K. (2005). Managing Innovation - Integrating technological, market and organizational change (3rd ed.). Australia: John Wiley and Sons.