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.

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

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New and disruptive value curves

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

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  • (Video) Value Matters: Innovation Has Direction (dMASS)
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  • (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) 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.
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  • (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) 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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