5.2 Types of Innovation

Innovation in business is achieved in three main ways;

  • Incremental Innovation
    Small, yet meaningful improvements in your products, process and other ways in which you do business. These tend to be the “new and improved” innovations we see every day: packaging improvements, waste reductions, supply chain enhancements, bigger/smaller sizing and cost reductions.These innovations can be easily understood by the consumer, hence it is very important that not only a business innovates but that it clearly tells the consumer about these improvements – this is a valuable competitive advantage.What three Incremental Innovations have you introduced in the last 2 years ?
  • Breakthrough Innovation.
    This is a meaningful change in the way you do business that gives consumers something demonstrably new (beyond “new and improved”). Breakthrough innovation produces a substantial competitive edge for a while, although the length of time anyone can maintain such an advantage is growing increasingly shorter.Have you introduced a Breakthrough Innovation in the last 2 years ?
  • Transformational Innovation.
    This is usually (but not always) the introduction of a process change or technology that transforms our product or the way we work. These innovations tend to be very rare.

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Disclaimer

LLP/LdV/TOI/2011/IRL-502 This project has been funded with support from the European Commission. The author is solely responsible for this publication (communication) and the Commission accepts no responsibility for any use may be made of the information contained therein.