The FinLab Toolkit

STRATEGY, INNOVATION & IMPACT | VISION BUILDING

Ten Types of Innovation

90-120 Min

The Ten Types of Innovation framework is a tool developed by consulting firm, Doblin. It maps the fundamental types of innovations that are relevant to organisations, and helps them look at innovation as a holistic activity that involves internal as well as customer facing investments. Under each type of innovation, Doblin has suggested a few strategies and tactics to use as a starting point.

USE CASES

  • Map the types of innovation that are currently being offered by an organisation.
  • Identify strengths and weaknesses with regard to innovation at an organisation.
  • Identify new types of innovation that an organisation can consider.

LIMITATIONS

While the Ten Types of Innovation tool is fairly comprehensive, it may be possible that an organisation is looking to offer innovations that are a combination of the different types — causing some initial confusion. Also, the tactics listed may not cover some new trends that teams may need to scan and map.

Ten Types of Innovation | Deloitte US

UNDERSTANDING THE TOOL

  • There are three major categories of innovation under which the Ten Types fit.
  • ‘Configuration’: Innovation that focuses on how an organisation is structured. The types of innovation that fall under this category include - 1) Profit Model: How money is made — how revenue, costs and profits are organised, 2) Network: Who an organisation innovates with — how do suppliers, partners, and external innovators help, 3) Structure: How an organisation aligns its talent and assets to create more value — how are departments, units, business lines etc. organised, 4) Process: How do superior internal processes and methods help innovation — how are quality management, production, supply, procurement, hiring etc. delivered.
  • ‘Offering’: Innovation that focuses on the performance and quality of products and services that are offered to customers. The types that are in this category are - 1) Product Performance: How products and services deliver superior value to buyers — unique product features and functionality, style, speed, safety, ease, fun, etc., 2) Product System: How complementary products and services together create more value — accessories, platforms, value added services, partner discounts, etc.
  • ‘Experience’: Innovation that focuses on how products or services are experienced by users. The types under this category are - 1) Service: How support is provided for users to find, buy, pay, enjoy and dispose — trials, personalisation, delivery and returns, financing, self-service, warranties, repairs etc. 2) Channel: How products and services reach users — pop-up stores, e-commerce, partner stores, events, experience stores etc., 3) Brand: How offerings and organisations are communicated in a memorable, and likeable way — co-branding, own-label, certification, campaigns, packaging etc. 4) Customer Engagement: How user interactions with product or service are delivered — personalised, listening to customers, co-creation, community etc.

STEP BY STEP

  1. Familiarise yourself: Read through the various boxes of the Ten Types of Innovation. Note down what you think is the biggest differentiator in terms of innovation for your business.
  2. Identify key innovations: At the level of Configuration, Offering, and Experience - begin by noting down what makes the business innovative currently. If you have thoughts on what could potentially be future innovations, note them down as well.
  3. Review the tactics: Read through the tactics under each type of innovation, using the ‘Tactics Cheat Sheet’.
  4. Unpack the innovation: Next, for each type of innovation, note down what makes your business innovative currently. Follow that by noting down potential innovations to explore in the future.
  5. Review and brainstorm: Review the mapping of current and potential innovations. Make any necessary changes, and then brainstorm how potential innovations could be created.

HOW TO FOR FACILITATORS

  1. At the start: Make sure the participants understand the goal of the activity and the direction. Refer to facilitation questions if they are feeling stuck.
  2. During the exercise: Start with a discussion focused on what kinds of innovation are possible. Take teams through the Ten Types tool, and ask them to fill the worksheet — mapping currently adopted innovations, gaps and opportunities.
  3. At the close: Have participants walk you through the worksheet they have filled out, and probe them on the mapping of both their current and potential innovations.

FACILITATORS QUESTION BANK

  • What do you associate with the word ‘innovation’? How does your organisation look at innovation?
  • Is your organisation currently innovating in terms of internal processes, product, service performance, experience — or a combination of these? What is your most important innovation?
  • What is the biggest gap in terms of innovation for your organisation? How do you compare to your closest competitors?
  • In terms of configuration — have you looked at internal processes and structures before or have you focused only on external facing innovations?
  • In terms of Offering and Experience - what do you know about what your customers need? Are your innovations tuned to customer needs?
  • Have you gone through the tactics? Can you identify those you have been practicing? Is there anything missing that you want to make a note of?
  • Which tactics have you considered earlier and chosen not to go forward with? Which tactics are new to you? What do you potentially want to try out?
  • Does your organisation need incremental or transformational innovation?

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