Innovation typology: beyond new products

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

Fig_1_12Innovation is about new value propositions, new ways to market to and interact with customers. This means much more than developing new products.

Fig_1_13Innovation is also about finding new ways to differentiate, and new value curves that disrupt competitors but not customers.

Fig_1_14Innovation is ultimately about designing new business models and new ways to deliver, share and capture value.


What is new: what vs. how

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

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  • (Book) Mortensen, P. S., & Bloch, C. W. (2005) Oslo Manual-Guidelines for collecting and interpreting innovation data. Organization for Economic Cooperation and Development, OECD.
  • (Video) IDEO shopping cart
  • (Video) SE – Innovation by Fab Design (on Vimeo)
  • (Video) The Zinnovants, “The different ways of innovating
  • (Article) Anzola-Román, P., Bayona-Sáez, C., & García-Marco, T. (2018). Organizational innovation, internal R&D and externally sourced innovation practices: Effects on technological innovation outcomes. Journal of Business Research, 91, 233-247.
  • (Article) Ballot, G., Fakhfakh, F., Galia, F., & Salter, A. (2015). The fateful triangle: Complementarities in performance between product, process and organizational innovation in France and the UK. Research Policy, 44(1), 217-232.
  • (Article) Brusoni, S., & Prencipe, A. (2006). Making design rules: A multidomain perspective. Organization Science, 17(2), 179-189.
  • (Article) Camison, C., & Villar-Lopez, A. (2014). ‘Organizational innovation as an enabler of technological innovation capabilities and firm performance’. Journal of Business Research, 67, 2891-2902.
  • (Article) Cooper, J. R. (1998). A multidimensional approach to the adoption of innovation. Management decision. 36(8), 493-502
  • (Article) Damanpour, F. (1987). ‘The adoption of technological, administrative and ancillary innovations: impact of organizational factors’. Journal of Management, 13, 675-688.
  • Article) Damanpour, F., & Gopalakrishnan, S. (2001). The dynamics of the adoption of product and process innovations in organizations. Journal of Management Studies, 38(1), 45-65.
  • (Article) Damanpour, F., Walker, R. M., & Avellaneda, C. N. (2009). Combinative effects of innovation types and organizational performance: A longitudinal study of service organizations. Journal of Management Studies, 46(4), 650-675.(Article) Damanpour, F., & Aravind, D. (2011). ‘Managerial Innovation: Conceptions, Processes, and Antecedents’. Management and Organizational Review, 8, 423-454.
  • (Article) Fujimoto, T. (2014). The long tail of the auto industry life cycle. Journal of Product Innovation Management, 31(1), 8-16.
  • (Article) Gault, F. (2018). Defining and measuring innovation in all sectors of the economy. Research Policy, 47(3), 617-622.
  • (Article) Gopalakrishnan, S., Bierly, P., & Kessler, E. H. (1999). A reexamination of product and process innovations using a knowledge-based view. Journal of High Technology Management Research, 1(10), 147-166.
  • (Article) Gopalakrishnan, S., & Damanpour, F. (1997). A review of innovation research in economics, sociology and technology management. Omega, 25(1), 15-28.
  • (Article) Hobday, M. (1998). Product complexity, innovation and industrial organisation. Research Policy, 26(6), 689-710.
  • (Article) Hullova, D., Simms, C. D., Trott, P., & Laczko, P. (2019). Critical capabilities for effective management of complementarity between product and process innovation: Cases from the food and drink industry. Research Policy, 48(1), 339-354.
  • (Article) Mann, D. L. (2003). Better technology forecasting using systematic innovation methods. Technological Forecasting and Social Change, 70(8), 779-795.
  • (Article) Mol, M. J., & Birkinshaw, J. (2009). The sources of management innovation: When firms introduce new management practices. Journal of Business Research, 62(12), 1269-1280.
  • (Article) Mothe, C., & Nguyen-Thi, T. U. (2013). Sources of information for organisational innovation: a sector comparative approach. International Journal of Technology Management, 63(1-2), 125-144.
  • (Article) Pérez, J. A. H., Geldes, C., Kunc, M. H., & Flores, A. (2019). New approach to the innovation process in emerging economies: The manufacturing sector case in Chile and Peru. Technovation, 79, 35-55.
  • (Article) Rowley, J., Baregheh, A., & Sambrook, S. (2011). Towards an innovation-type mapping tool. Management Decision, 49(1), 73-86.
  • (Article) Sapprasert, K., & Clausen, T. H. (2012). Organizational innovation and its effects. Industrial and Corporate Change, 21(5), 1283-1305.
  • (Article) Tavassoli, S., & Karlsson, C. (2015). Persistence of various types of innovation analyzed and explained. Research Policy, 44(10), 1887-1901.
  • (Article) Vargo, S.L. and Robert F. Lusch (2004) The Four Service Marketing Myths: Remnants of a Goods-Based, Manufacturing Model, Journal of Service Research, May 2004 6: 324-335

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.
  • (Book) Hull, F. and Tidd, J. (2003) Service Innovation: Organizational Responses to Technological Opportunities and Market Imperatives. Imperial College Press, London.
  • (Book) Johnson, S. P., Menor, L. J., Roth, A. V., & Chase, R. B. (2000). A critical evaluation of the new service development process. New service development: Creating memorable experiences, SAGE Publications, Inc
  • (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)
  • (Article) Aarikka-Stenroos, L., & Jaakkola, E. (2012). Value co-creation in knowledge intensive business services: A dyadic perspective on the joint problem solving process. Industrial Marketing Management, 41(1), 15-26.
  • (Article) Aas, T. H., Breunig, K. J., Hydle, K. M., & Pedersen, P. E. (2015). Innovation management practices in production-intensive service firms. International Journal of Innovation Management, 19(05), 1550055.
  • (Article) Baines, T. S., Lightfoot, H. W., Benedettini, O., & Kay, J. M. (2009). The servitization of manufacturing: A review of literature and reflection on future challenges. Journal of Manufacturing Technology Management, 20(5), 547-567.
  • (Article) Barras, R. (1986). Towards a theory of innovation in services. Research Policy, 15(4), 161-173.
  • (Article) Benedettini, O., Neely, A., & Swink, M. (2015). Why do servitized firms fail? A risk-based explanation. International Journal of Operations & Production Management. 35(6)
  • (Article) Beuren, F. H., Ferreira, M. G. G., & Miguel, P. A. C. (2013). Product-service systems: a literature review on integrated products and services. Journal of Cleaner Production, 47, 222-231.
  • (Article) Bitner, Mary Jo, Amy L. Ostrom, and Felicia N. Morgan. “Service blueprinting: a practical technique for service innovation.” California Management Review 50.3 (2008): 66-94.
  • (Article) Cohen, M. A., Agrawal, N., & Agrawal, V. (2006). Winning in the aftermarket. Harvard Business Review, 84(5), 129.
  • (Article) Chesbrough, H. W. (2011). Bringing open innovation to services. MIT Sloan Management Review, 52(2), 85.
  • (Article) Davies, A., Brady, T., & Hobday, M. (2006). Charting a path toward integrated solutions. MIT Sloan Management Review, 47(3), 39.
  • (Article) De Jong, J. P., & Vermeulen, P. A. (2003). Organizing successful new service development: a literature review. Management Decision, 41(9), 844-858.
  • (Article) Droege, H., Hildebrand, D., Forcada, H., & Miguel, A. (2009). ‘Innovation in services: present findings, and future pathways’. Journal of Service Management, 20, 131-155.
  • (Article) Gallouj, F. & Weinstein, O. (1997). “Innovation in services”, Research Policy, 26, 537-556.
  • (Article) Gebauer, H., Fleisch, E., & Friedli, T. (2005). Overcoming the service paradox in manufacturing companies. European Management Journal, 23(1), 14-26.
  • (Article) Gebauer, H., Gustafsson, A., & Witell, L. (2011). Competitive advantage through service differentiation by manufacturing companies. Journal of Business Research, 64(12), 1270-1280.
  • (Article) Johne, A., & Storey, C. (1998). New service development: a review of the literature and annotated bibliography. European Journal of Marketing, 32(3/4), 184-251.
  • (Article) Kindström, D. (2010). Towards a service-based business model–Key aspects for future competitive advantage. European Management Journal, 28(6), 479-490.
  • (Article) Kindström, D., Kowalkowski, C., & Sandberg, E. (2013). Enabling service innovation: A dynamic capabilities approach. Journal of Business Research, 66(8), 1063-1073.
  • (Article) Kowalkowski, C., Gebauer, H., Kamp, B., & Parry, G. (2017). Servitization and deservitization: Overview, concepts, and definitions. Industrial Marketing Management, 60, 4-10
  • (Article) Lusch, R. F., & Nambisan, S. (2015). Service innovation: A service-dominant logic perspective. MIS Quarterly, 39(1).
  • (Article) Mathieu, V. (2001). Product services: from a service supporting the product to a service supporting the client. Journal of Business & Industrial Marketing.
  • (Article) Miles, I. (2000). Services innovation: coming of age in the knowledge-based economy. International Journal of Innovation Management, 4(04), 371-389.
  • (Article) Mont, O. K. (2002). Clarifying the concept of product–service system. Journal of Cleaner Production, 10(3), 237-245.
  • (Article) Mothe, C., & Thi, T. U. N. (2010). The link between non‐technological innovations and technological innovation. European Journal of Innovation Management , 13(3), 313-332
  • (Article) Ordanini, A., Parasuraman, A., & Rubera, G. (2014). When the recipe is more important than the ingredients: A qualitative comparative analysis (QCA) of service innovation configurations. Journal of Service Research, 17(2), 134-149.
  • (Article) Russo-Spena, T., & Mele, C. (2012). “Five Co-s” in innovating: a practice-based view. Journal of Service Management, 23(4), 527-553.
  • (Article) Skålén, P., Gummerus, J., von Koskull, C., & Magnusson, P. R. (2015). Exploring value propositions and service innovation: a service-dominant logic study. Journal of the Academy of Marketing Science, 43(2), 137-158.
  • (Article) Stauss, B., den Hertog, P., van der Aa, W., & de Jong, M. W. (2010). Capabilities for managing service innovation: towards a conceptual framework. Journal of Service Management. 21(4), 490-514
  • (Article) Storey, C., & Easingwood, C. J. (1998). The augmented service offering: a conceptualization and study of its impact on new service success. Journal of Product Innovation Management, 15(4), 335-351.
  • (Article) Tukker, A., & Tischner, U. (2006). Product-services as a research field: past, present and future. Reflections from a decade of research. Journal of Cleaner Production, 14(17), 1552-1556
  • (Article) Vandermerwe, S., & Rada, J. (1988). Servitization of business: adding value by adding services. European Management Journal, 6(4), 314-324.
  • (Article) Vargo, S.L.  and Robert F. Lusch (2004) Evolving to a New Dominant Logic for Marketing Journal of Marketing  Vol. 68, No. 1 (Jan., 2004) , pp. 1-17
  • (Article) Visnjic, I., Ringov, D., & Arts, S. (2019). Which Service? How Industry Conditions Shape Firms’ Service‐Type Choices. Journal of Product Innovation Management.
  • (Article) Witell, L., & Löfgren, M. (2013). From service for free to service for fee: business model innovation in manufacturing firms. Journal of Service Management, 24(5), 520-533.
  • (Article) Witell, L., Snyder, H., Gustafsson, A., Fombelle, P., & Kristensson, P. (2016). Defining service innovation: A review and synthesis. Journal of Business Research, 69(8), 2863-2872.
  • (Article) Zhang, M., Zhao, X., Voss, C., & Zhu, G. (2016). Innovating through services, co-creation and supplier integration: Cases from China. International Journal of Production Economics, 171, 289-300.

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
  • (Article) Adner, R. (2002). When are technologies disruptive? A demand‐based view of the emergence of competition. Strategic Management Journal, 23(8), 667-688.
  • (Article) Adner, R., & Zemsky, P. (2005). Disruptive technologies and the emergence of competition. RAND Journal of Economics, 229-254.
  • (Article) Altmann, P., & Engberg, R. (2016). Frugal Innovation and Knowledge Transferability. Research-Technology Management, 59(1), 48-55.
  • (Article) Ansari, S.S., Garud, R., & Kumaraswamy, A. (2016). The disruptor’s dilemma: TiVo and the US television ecosystem. Strategic Management Journal, 37(9), 1829-1853.
  • (Article) Bower, J. L., & Christensen, C. M. (1995). Disruptive technologies: catching the wave. Harvard Business Review, 13(1), 43-53.
  • (Article) Cajaiba-Santana, G. (2014). Social innovation: Moving the field forward. A conceptual framework. Technological Forecasting and Social Change, 82, 42-51.
  • (Article) Charitou, C. D., & Markides, C. C. (2002). Responses to disruptive strategic innovation. MIT Sloan Management Review, 44(2), 55-64.
  • (Article) Christensen, C.M., & Bower, J.L. (1996). Customer power, strategic investment, and the failure of leading firms. Strategic Management Journal, 197-218.
  • (Article) Christensen, C. M., Johnson, M. W., & Rigby, D. K. (2002). Foundations for growth: How to identify and build disruptive new businesses. MIT Sloan Management Review, 43(3), 22.
  • (Article) Christensen, C., & Euchner, J. (2011). Managing disruption: an interview with Clayton Christensen. Research-Technology Management, 54(1), 11-17.
  • (Article) Christensen, C. M., Raynor, M. E., & McDonald, R. (2015). What is disruptive innovation. Harvard Business Review, 93(12), 44-53.
  • (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.
  • (Article) Dahan, N. M., Doh, J. P., Oetzel, J., & Yaziji, M. (2010). Corporate-NGO collaboration: Co-creating new business models for developing markets. Long Range Planning, 43(2-3), 326-342.
  • (Article) Danneels, E. (2004). Disruptive technology reconsidered: A critique and research agenda. Journal of Product Innovation Management, 21(4), 246-258.
  • (Article) Denning, S. (2005). Why the best and brightest approaches don’t solve the innovation dilemma. Strategy & Leadership, 33(1), 4-11.
  • (Article) Dillon, T. A., Lee, R. K., & Matheson, D. (2005). Value innovation: Passport to wealth creation. Research-Technology Management, 48(2), 22-36.
  • (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.
  • (Article) Govindarajan, V., & Kopalle, P. K. (2006). The usefulness of measuring disruptiveness of innovations ex post in making ex ante predictions. Journal of Product Innovation Management, 23(1), 12-18.
  • (Article) Hang, C. C., Chen, J., & Subramian, A. M. (2010). Developing disruptive products for emerging economies: Lessons from Asian cases. Research-Technology Management, 53(4), 21-26
  • (Article) Hossain, M. (2018). Frugal innovation: A review and research agenda. Journal of Cleaner Production, 182, 926-936.
  • (Article) Keupp, M., Palmiè, M., & Gassmann, O. (2012). ‘A reflective review of disruptive innovation theory’. International Journal of Management Review, 14, 367-390.
  • (Article) King, Andrew A., and Baljir Baatartogtokh. “How useful is the theory of disruptive innovation?.” MIT Sloan Management Review, 57.1 (2015): 77.
  • (Article) Lim, C., & Fujimoto, T. (2019). Frugal innovation and design changes expanding the cost-performance frontier: A Schumpeterian approach. Research Policy, 48(4), 1016-1029.
  • (Article) Markides, C. (2006). Disruptive innovation: In need of better theory. Journal of Product Innovation Management, 23(1), 19-25.
  • (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.
  • (Article) Winterhalter, S., Zeschky, M. B., Neumann, L., & Gassmann, O. (2017). Business models for frugal innovation in emerging markets: the case of the medical device and laboratory equipment industry. Technovation, 66, 3-13.
  • (Article) Yu, D., & Hang, C. C. (2010). A reflective review of disruptive innovation theory. International Journal of Management Reviews, 12(4), 435-452.
  • (Article) Zeschky, M., Widenmayer, B., & Gassmann, O. (2011). Frugal innovation in emerging markets. Research-Technology Management, 54(4), 38-45.
  • (Article) Zeschky, M. B., Winterhalter, S., & Gassmann, O. (2014). From cost to frugal and reverse innovation: Mapping the field and implications for global competitiveness. Research-Technology Management, 57(4), 20-27.
  • (Article) Zietsma, C., Ruebottom, T., & Slade Shantz, A. (2018). Unobtrusive maintenance: temporal complexity, latent category control and the stalled emergence of the cleantech sector. Journal of Management Studies, 55(7), 1242-1277.

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) 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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