Innovation typology: beyond new products

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Innovation is about both making new things (“what”) and making similar things in new ways (“how”).c DIO111 update

Innovation is about new value propositions, new ways to market to and interact with customers. This means much more than developing new products.Fig_1_12

Innovation is also about finding new ways to differentiate, and new value curves that disrupt competitors but not customers.Fig_1_13

Innovation is ultimately about designing new business models and combining new ways to deliver, share and capture value.Fig_1_14

Bibliography

What is new: what vs. how

Keywords: administrative innovation, Industry 4.0, managerial innovation, organizational innovation, process innovation, product innovation

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New value propositions and new interactions

Keywords: customer interaction, differentiation, new value proposition, product-as-a-service, service innovation, servitization

  • (Book) Baines, T., & Lightfoot, H. (2013) Made to Serve: How manufacturers can compete through servitization and product service systems. John Wiley & Sons.
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  • (Book) Sundbo, J., & Gallouj, F. (2000). Innovation as a loosely coupled system in services. In Innovation systems in the service economy (pp. 43-68). Springer, Boston, MA.
  • (Video) Product as a service – Red Hat
  • (Video) What is Servitization? (The Advanced Services Group)
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New and disruptive value curves

Keywords: disruptive innovation, frugal innovation, quality, social innovation, value curve, value innovation

  • (Book) Christensen, C. (1997) The Innovator’s Dilemma. When new technologies cause great firms to fail, Harvard Business School
  • (Book) Christensen, C.M. and Raynor, M.E. (2003) The Innovator’s solution, Harvard Business School Press
  • (Book) Michelini, L. (2012). Social innovation and new business models: creating shared value in low-income markets. Springer Science & Business Media.
  • (Book) Radjou, N., Prabhu, J., & Ahuja, S. (2012). Jugaad innovation: Think frugal, be flexible, generate breakthrough growth. John Wiley & Sons.
  • (Video) Blue Ocean Strategy
  • (Video) Value Matters: Innovation Has Direction (dMASS)
  • (Video) The Explainer: Disruptive Innovation (Harvard Business Review)
  • (Video) Clayton M. Christensen on Disruptive Innovation (Published on 1 Jul 2012)
  • (Video) Navi Radjou (2014), Creative problem-solving in the face of extreme limits
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  • (Article) Christensen, C. M., McDonald, R. , Altman, E. J. and Palmer, J. E. (2018), Disruptive Innovation: An Intellectual History and Directions for Future Research. Journal of Management Studies, Accepted Author Manuscript.
  • (Article) Dabić, M., Obradović, T., Vlačić, B., Sahasranamam, S., & Paul, J. (2022). Frugal innovations: A multidisciplinary review & agenda for future research. Journal of Business Research, 142, 914-929.
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  • (Article) Danneels, E. (2004). Disruptive technology reconsidered: A critique and research agenda. Journal of Product Innovation Management, 21(4), 246-258.
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  • (Article) Ernst, H., Kahle, H. N., Dubiel, A., Prabhu, J., & Subramaniam, M. (2015). The antecedents and consequences of affordable value innovations for emerging markets. Journal of Product Innovation Management, 32(1), 65-79.
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  • (Article) Markides, C., & Oyon, D. (2010). What to do against disruptive business models (when and how to play two games at once). MIT Sloan Management Review, 51(4), 25.
  • (Article) Mumford, M. D. (2002). Social innovation: ten cases from Benjamin Franklin. Creativity Research Journal, 14(2), 253-266.
  • (Article) Pisoni, A., Michelini, L., & Martignoni, G. (2018). Frugal approach to innovation: State of the art and future perspectives. Journal of Cleaner Production, 171, 107-126
  • (Article) Pol, E., & Ville, S. (2009). Social innovation: Buzz word or enduring term?. The Journal of Socio-economics, 38(6), 878-885.
  • (Article) Prahalad, C. K., & Mashelkar, R. A. (2010). Innovation’s holy grail. Harvard Business Review, 88(7/8), 132-141.
  • (Article) Sanchez, P., & Ricart, J. E. (2010). Business model innovation and sources of value creation in low‐income markets. European Management Review, 7(3), 138-154.
  • (Article) Schmidt, Glen M., and Cheryl T. Druehl.(2008) “When is a disruptive innovation disruptive?.” Journal of Product Innovation Management, 25(4), 347-369.
  • (Article) Van der Have, R. P., & Rubalcaba, L. (2016). Social innovation research: An emerging area of innovation studies?. Research Policy, 45(9), 1923-1935.
  • (Article) Van Orden, J., van der Rhee, B., & Schmidt, G. M. (2011). Encroachment patterns of the “best products” from the last decade. Journal of Product Innovation Management, 28(5), 726-743.
  • (Article) Williamson, P. J. (2010). Cost innovation: preparing for a ‘value-for-money’revolution. Long Range Planning, 43(2-3), 343-353.
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New business models

Keywords: business model innovation, Innovation Readiness Level, platforms

  • (Book) Gassmann, O., Frankenberger, K., & Csik, M. (2014) The business model navigator: 55 models that will revolutionize your business. London: Pearson UK.
  • (Book) Keeley, L., Walters, H., Pikkel, R., & Quinn, B. (2013). Ten types of innovation: The discipline of building breakthroughs. John Wiley & Sons.
  • (Video) CucinaBarilla
  • (Video) Hadyn Parry:Re-engineering mosquitos to fight disease (TED talk)
  • (Video) What is Innovation Management by Dr Julian Birkinshaw
  • (Video) Business Model Innovation – The secret behind Amazon, Spotify and Tinder success (2017).
  • (Article) Clauss, T. (2017). Measuring business model innovation: conceptualization, scale development, and proof of performance. R&D Management, 47(3), 385-403.
  • (Article) Desyllas, P., & Sako, M. (2013). Profiting from business model innovation: Evidence from Pay-As-You-Drive auto insurance. Research Policy, 42(1), 101-116.
  • (Article) Evans, D. S., & Schmalensee, R. (2005). The industrial organization of markets with two-sided platforms (No. w11603). National Bureau of Economic Research.
  • (Article) Fehrer, J. A., Woratschek, H., & Brodie, R. J. (2018). A systemic logic for platform business models. Journal of Service Management, 29(4), 546-568.
  • (Article) Foss, N. J., & Saebi, T. (2017). Fifteen years of research on business model innovation: How far have we come, and where should we go?. Journal of Management, 43(1), 200-227.
  • (Article) George, G. & Bock, A. (2011). “The business model in practice and its implication for entrepreneurship research”; Entrepreneurship Theory and Practice, 35(1), 83-111.
  • (Article) Henry, M., Bauwens, T., Hekkert, M., & Kirchherr, J. (2019). A typology of circular start-ups: Analysis of 128 circular business models. Journal of Cleaner Production, 118528.
  • (Article) Markides, C. (1997). Strategic Innovation. Sloan Management Review, Spring, 9-23.
  • (Article) Matzler, K., Bailom, F., Friedrich von den Eichen, S., & Kohler, T. (2013). Business model innovation: coffee triumphs for Nespresso. Journal of Business Strategy, 34(2), 30-37.
  • (Article) McDonald, R. E., Masselli, J. J., & Chanda, B. (2019). Nonprofit business model innovation as a response to existential environmental threats: Performing arts in the United States. Journal of Business Research.
  • (Article) Menter, M., Göcke, L., & Zeeb, C. (2023) The organizational impact of business model innovation: assessing the person‐organization fit. Journal of Management Studies. https://doi.org/10.1111/joms.12902
  • (Article) Osterwalder, A., Pigneur, Y., & Tucci, C. L. (2005). Clarifying business models: Origins, present, and future of the concept. Communications of the association for Information Systems, 16(1), 1.
  • (Article) Remane, G., Hanelt, A., Tesch, J. F., & Kolbe, L. M. (2017). The business model pattern database – A tool for systematic business model innovation. International Journal of Innovation Management, 21(1)
  • (Article) Rietveld, J., Schilling, M. A., & Bellavitis, C. (2019). Platform strategy: Managing ecosystem value through selective promotion of complements. Organization Science.
  • (Article) Schneider, S., & Spieth, P. (2013). Business model innovation: Towards an integrated future research agenda. International Journal of Innovation Management, 17, 134-156.
  • (Article) Sorescu, A., Frambach, R. T., Singh, J., Rangaswamy, A., & Bridges, C. (2011). Innovations in retail business models. Journal of Retailing, 87, S3-S16.
  • (Article) Spieth, P., Schneckenberg, D., & Ricart, J. E. (2014). Business model innovation–state of the art and future challenges for the field. R&D Management, 44(3), 237-247.
  • (Article) Taran, Y., Boer, H., & Lindgren, P. (2015). A business model innovation typology. Decision Sciences, 46(2), 301-331.
  • (Article) Teece (2010) “Business models, business strategy and innovation.”, Long Range Planning, 43(2), 172-194.
  • (Article) Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40-49.

(c) Prof. Benoit Gailly, Louvain School of Management

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