By: Tafadzwa Kapuya
Innovation has come a long way over the centuries, with foundational technologies as the wheel and basic hand-held stone tools preceding the now millions of inventions that have come to shape society today as we know it; including the introduction of UVA’s (Drones) in surveillance and modern warfare, Robotics in industrial manufacturing and space exploration as well as the Internet and Artificial Intelligence in global communication and security. Companies as Apple Inc, Microsoft, Tesla and Google have been in the headlines for years now and continue to push their boundaries beyond the horizon with every new concept that is introduced with each of their products. Crypto-currencies like Bitcoin and payment systems like PayPal have brought great changes in the financial sector, gone are the days when having no cash meant having no money and Bank visits where a regular thing with business people.
A game of many rules, Innovation is not boxed to just technological inventions, but can be defined as the creation, development and implementation of a new product, process or service, with the aim of improving efficiency, effectiveness or establishing a competitive advantage. In other words, Innovation simply something that is made or done to make life easier and better. This allows the inclusion of not only physical inventions, but also developed systems in science plus every other area of human life in general including Commerce (such as business systems and trade methods) and Art (such as design style, methods and media). A good question that many people would ask themselves though would be, “why do I need to understand what innovation is and how it works?” Two things here; firstly, this knowledge of the principle and its implementation may be the one thing left that stands between you and a possible reality where you become a billionaire or go down in history as another Thomas Edison, Henry Ford or Leonardo DaVinci, through that little something that you contribute to humanity’s present and future existence. Secondly, whatever area of business that you are in, innovation ensures that you get on top of your competitors or at least stay in the same club as those trailblazing rival companies. Afterall, if you are a young start up, whether in entertainment, software development, finance or health, you do not want to meet the same fate that companies like Blockbuster and Kodak met, simply because they failed to stay agile and nimble, then instead consigned to public memories as casualties of “Innovation Wars”.
Every year, the multinational consulting firm-PwC conducts a Global CEO Survey with the objective of identifying and understanding the hot-button issues on today’s global leaders. This is to be expected, given how the mainstream and trade presses are awash with stories of new technologies threatening to disrupt businesses, industries, and even entire countries.
THE DIFFERENT TYPES OF INNOVATION
A big part of the problem is that innovation is such a catch-all term which makes it difficult to pin down what it really means and what is required of you each time. However, identifying each innovation type and being able to relate it with its involvements is a good start. The following can be helpful in your navigation through this maze and will assist you in making the best out of your current situation.
The Innovation Matrix
One of the most common ways of looking at innovation is via the Innovation Matrix, which is included below.
The Innovation Matrix classifies innovations according to both the technology it uses and the market it operates in. Therefore, it allows us to conceive of these four distinct forms of innovation:
1.Architectural/Recombinative Innovation
This involves taking an approach, technology or methodology from one field to another. Incredibly common, research suggests that around 40% of the patents registered over the past 150 years fall into this camp, with the ratio growing each year.
A good example of this type of innovation includes the combination of already existing components like Geo-location, Ride Sharing and Freelance Workers to come up with the idea of Uber. Another example we can look at is the concept of Dual Core and Multiple Core Processors in computers; built from two or more Single Core Processors and combined to maximize and exceed the potential that one component would have in function.
2.Radical Innovation
This type is what quickly comes to mind when we think about innovation, it involves the birth of new industries all together and the application of revolutionary technologies. The nature of this innovation allows whole societies to take a major leap forward in advancement.
Periods as the Renaissance and Industrial Age provoked fundamental questions in how we go about our lives and our relationship to the world about us. Early technologies that were introduced from this type of innovation include introduction of telephones, motor vehicles and electricity. Many argue that we are on the cusp of the Fourth Industrial Revolution, with advocates believing that artificial intelligence, 3d printing and the Internet of Things (IoT) will cause a profound shift in everything from transportation to healthcare; the use of all these conceived concepts as part of our essential day to day lives is a defining characteristic of Radical Innovation.
3.Incremental Innovation
A majority of Innovations that we have come to know are actually Incremental in nature. In essence, incremental innovation is the process of making small or seemingly insignificant improvements or changes to existing products, services, processes, methods, or even the organization itself. Incremental innovation is arguably the most accessible form of innovation, as it can often be performed without requiring huge budgets, a large team, or a reorientation of the business’s strategy.
Some businesses have been forced by circumstances during the pandemic lockdowns to embrace the idea of working remotely, funny the same concept has been in use for years with companies such as Upwork and Freelancer providing many remote jobs globally.
Amazon, a business juggernaut, has also proven to be a master in this area by continually developing and perfecting its service offering. This ranges from introducing next-day delivery to continually experimenting with their web interface, resulting in daily optimisation of the user-experience.
On the flipside of the coin, Easy examples on product changes can be seen with mobile phone manufacturers as Samsung and Huawei, which have shifted from Screen and Button-Keypad Mobile Phone Models to Touch Screen Models, as well as moving from detachable batteries to now inbuilt batteries.
4.Disruptive Innovation
The term ‘disruptive innovation’ refers to when an innovation creates a fundamentally new value network. This can be achieved by either creating a new market altogether or by entering an existing market and changing how consumers interact with it. Popularised by the late Clayton Christensen, this concept according to his theory, sees innovations entering a market at a point of low performance, as measured by the traditional matrix of the market, and through its value offer to a subset of the market to whom it is valuable, the bridgehead is used to rapidly scale and disrupt the whole market. Netflix is one of the best examples of this type of innovation as it changed the way customers interacted with Television, completely overshadowing the traditional Blockbuster Rent/Buy A Cassette in a physical shop idea, by granting viewers easy access to a cascade of movies and television shows, from right in the comfort of their home via the internet.
Successful Innovation, how?
“Even the most successful organizations can find things they can improve on, and indeed, to avoid the innovator’s dilemma, it’s vital that successful businesses continue looking for ways they can improve.”
-Clayton Christensen
You can be quite successful in breaking new ground by exploring the Innovation Matrix. It provides some sort of structure and the types above somewhat give your inspiration direction, but there is so much more that can be done and the possibilities are limitless when it comes to Innovation Tactics. While you brainstorm on your next big idea, bear these in mind:
·Tackle the most pressing concerns of customers and address the most important needs.
·Harnesses the power of the crowd, including internal employees and external stakeholders.
·Work with the most talented people that you can find, be it within or outside your organization.
·Ensure that data drives everything you do.
·Tap into the latest technology.
· Involve a wide range of stakeholders to not only tackle the needs of customers, but society as a whole.
· Embrace agile innovation methods as it leads to increased productivity and greater innovation output
One thing for sure is that innovation is no “One Size Fits All” Cap. It’s a game of many rules and there is more than one way of winning the game. Hopefully, what we have covered above acts as a springboard to your next project and helps you build a solid foundation on that BIG something that you have been thinking of establishing. Surely still untapped, innovation is a lightning storm with energy just waiting to be harnessed.
