The Three Main Types of Innovation

hi everyone this is sheila shafi and welcome back to process arc's channel where we provide you with digestible business insights today's topic is all about innovation i want to discuss exactly what innovation is let's talk about the definition and then the three main types and ultimately the categories within the world of innovation and i think this is important because we bendy around this term a lot in the industry and some of us are actually involved in the realm of innovation or being asked to think in an innovative way or provide innovative ideas to the company and it's very difficult to figure out exactly what that means are you asking me to think like an apple or a google or can i just give you an idea that i have so let's start with the definition of innovation and i know that innovation and invention are sometimes used interchangeably but in reality there are totally different things so the mathematical equation behind innovation is invention multiplied by commercialization so essentially it means that in order for us to have an innovation we have to have come up with something totally new and something inventive and we have to also commercialize that idea so that it gets adopted by people so if we have a fabulous idea but we can't take it to market we don't have a way to take it to market for people to adopt it well guess what we don't really have innovation at play or we may have an invention that we think it's really good and we find a way to take it to market for people to see what it is but they don't adopt it at the end of the day so we have great commercialization strategy but a very poor invention then again the innovation is lacking in that realm so just remember that invention and innovation are totally different things in order for innovation to take place it has to go to the marketplace and people have to adopt and start using it with the definition out of the way let's now talk about the three main categories under the categories of innovation we've got technology we've got process and business models so technology is probably where a lot of focus and attention has been around new ways of doing business solutions like even the cell phone is a technological advancement that took place at roughly around 10 years ago so technology is probably something that we have a lot of clarity around when it comes to innovation process is where we've been talking a lot about in this channel is all around doing things in a different way and business model is ultimately changing the way you operate you interface with your customers the way you create value and you commercialize things in order to make money so those are the three main types around innovation now let's talk about the three main categories that are under the realm of innovation within the three categories you have disruptive you have incremental and lateral disruptive is probably what we hear a lot about and most often it's not described or used correctly dr christensen at mit has a very well defined definition for disruptive technology and think of it as democratizing something it's being able to give a product or service to people that once was really not attainable but now everybody has access to so think about cell phones for example 15 20 years ago not everybody had access to a cell phone a lot of technological advancements had to take place a lot of disruption had to take place in order for us to take something that only a few people had access to and then essentially allowed a much larger set of the population to be able to purchase and use it or even think about ford's t-model automobile before that before the assembly lines in detroit only a handful of extremely wealthy people were able to actually use or purchase a vehicle it was through ford's changes of how a car was going to get manufactured that the entire that entire product got commercialized a lot of what's happening in the marketplace is being categorized as disruptive but if you really begin to look at it they're only fixing a piece of what is wrong in a particular industry or a particular line of business so i would probably categorize a lot of what's happening out there as more incremental than disruptive and the last category which is around lateral type of innovation is when you go to a different industry when you go outside of your line of business look for best practices look for ways that work is getting done there and then bring those ideas back in to your business or industry so that's the lateral concept so for all of you people who are interested in creative problem solving and innovation chances are the majority of us are going to be hovering in the space of category and process and then incremental innovation and that's totally fine i think that's a great place to be because still you have to identify points in the process or in an industry where friction exists and coming up with solutions that take that friction out and improve the overall experience of a customer that's it for the definition of innovation i wanted to have that out there for all of you viewers so that we have clarity when i talk about having a goal of making you guys creative problem solvers so that you can continue to innovate what kind of an innovation we were talking about i absolutely would love to hear your thoughts please make sure you leave them in the comments section don't forget to subscribe that really helps us me in particular continue to stay motivated to create these videos i look forward to you guys next week and thank you again for joining me today

Channel: Sheila Shaffie - ProcessArc

Views: 29

Keywords: types of innovation, critical thinking, processarc, sheila shaffie, problem solving, client experience, Business process mapping, Process mapping, Process boundaries, Segmentation, Process validation, Mapping methodologies, Lean, Six sigma, Agile, Design thinking, Financial services, Services sector, Change management, Lean six sigma training, Lean six sigma certification, AI, Robotics, Data, PowerBI, Data vizualization, Data mapping, Business transformation, customer experience

Id: rrzqfpF0ewY

Length: 6min 4sec (364 seconds)

Published: Wed Mar 17 2021