
Ten Types of Innovation
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Using a list of more than 2,000 successful innovations,including Cirque du Soleil, early IBM mainframes, the Ford Model-T,and many more, the authors applied a proprietary algorithm anddetermined ten meaningful groupings--the Ten Types ofInnovation--that provided insight into innovation. The TenTypes of Innovation explores these insights to diagnosepatterns of innovation within industries, to identify innovationopportunities, and to evaluate how firms are performing againstcompetitors. The framework has proven to be one of the mostenduring and useful ways to start thinking abouttransformation.
* Details how you can use these innovation principles to bringabout meaningful--and sustainable--growth within yourorganization
* Author Larry Keeley is a world renowned speaker, innovationconsultant, and president and co-founder of Doblin, the innovationpractice of Monitor Group; BusinessWeek named Keeley one of sevenInnovation Gurus who are changing the field
The Ten Types of Innovation concept has influenced thousands ofexecutives and companies around the world since its discovery in1998. The Ten Types of Innovation is the first bookexplaining how to implement it.
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Persons
Larry Keeley (www.monitortalent.com; Cambridge, MA) is a world renowned speaker, innovation consultant, and president and co-founder of Doblin, the innovation practice of Monitor Group, which was founded by Michael Porter and is one of the world's leading global consulting practices. BusinessWeek named Keeley one of seven Innovation Gurus who are changing the field, and cited Doblin for having many of the most sophisticated tools for delivering innovation effectiveness. Larry also teaches innovation strategy at Illinois Institute of Technology and at the Institute of Design in Chicago, the first design school in the U.S. with a Ph.D. program.
Bansi Nagji is a senior partner of Monitor Group, one of the world's leading consultancies. He is leader of the firm's global innovation practice and has direct responsibility for many of Monitor's largest clients, helping leaders of global companies with their toughest growth challenges. He is a frequent speaker on the topic of innovation and authored the cover story on innovation in the May 2012 issue of Harvard Business Review. He holds a BA and MA from Cambridge University, England, and an MBA with Distinction from INSEAD, France.
Helen Walters is a writer and editor at Doblin and Monitor Group, and was previously innovation and design editor at BusinessWeek. She is the TED conference's official on-site blogger and has some 13,600 followers on Twitter, while her daily blog of innovation-related updates, Thought You Should See This, has over 20,000 subscribers. She is still a regular writer on innovation and design, is a contributing editor to her alma mater, Creative Review, and contributes opinion pieces to publications including Design Observer, Fast Company and Core77.com.
Content
A NEW DISCIPLINE IS LEAVING THE LAB
CHAPTER 1 RETHINK INNOVATION 2
Eradicate lore, substitute logic
PART TWO TEN TYPES OF INNOVATION
THE BUILDING BLOCKS OF BREAKTHROUGHS
CHAPTER 2 THE TEN TYPES 16
An overview
CHAPTER 3 PROFIT MODEL 18
How you make money
CHAPTER 4 NETWORK 22
How you connect with others to create value
CHAPTER 5 STRUCTURE 26
How you organize and align your talent and assets
CHAPTER 6 PROCESS 30
How you use signature or superior methods to do your work
CHAPTER 7 PRODUCT PERFORMANCE 34
How you develop distinguishing features and functionality
CHAPTER 8 PRODUCT SYSTEM 38
How you create complementary products and services
CHAPTER 9 SERVICE 42
How you support and amplify the value of your offerings
CHAPTER 10 CHANNEL 46
How you deliver your offerings to customers and users
CHAPTER 11 BRAND 50
How you represent your offerings and business
CHAPTER 12 CUSTOMER ENGAGEMENT 54
How you foster compelling interactions
PART THREE MORE IS MIGHTIER
MIX AND MATCH INNOVATION TYPES FOR GREATER IMPACT
CHAPTER 13 GO BEYOND PRODUCTS 62
How to avoid being easily copied
CHAPTER 14 STRENGTH IN NUMBERS 78
Innovations using a combination of types generate betterreturns
PART FOUR SPOT THE SHIFTS
SEE THE CONDITIONS THAT BIRTH BREAKTHROUGHS
CHAPTER 15 MIND THE GAP 100
Uncover your blind spots
CHAPTER 16 CHALLENGE CONVENTION 104
See where your competitors are focusing -- and then makedifferent choices
CHAPTER 17 PATTERN RECOGNITION 118
See how industries and markets shift -- and learn from thosewho saw the signs and acted on them
PART FIVE LEADING INNOVATION
USE BETTER PLANS TO BUILD BREAKTHROUGHS
CHAPTER 18 DECLARE INTENT 130
By being clear about where and how you will innovate, you massivelyincrease your odds of success
CHAPTER 19 INNOVATION TACTICS 142
A toolkit that turns the Ten Types into building blocks forinnovation
CHAPTER 20 USING THE INNOVATION PLAYBOOK 150
A selection of plays (and the combinations of tactics you'llneed to implement them)
PART SIX FOSTERING INNOVATION
INSTALLING EFFECTIVE INNOVATION INSIDE YOUR ORGANIZATION
CHAPTER 21 GET CRACKING 190
Everyone is afraid of the unfamiliar.
Here's how to innovate anyway
CHAPTER 22 SPONSORS AND AUTHORS 196
Great firms make sure that innovation is not optional
CHAPTER 23 INSTALLING INNOVATION 200
Don't worry about culture.
Build a systemic capability
CHAPTER 24 EXECUTE EFFECTIVELY 212
Principles for bringing your innovations to market on time and onbudget
PART SEVEN APPENDIX
PUTTING THESE PRINCIPLES INTO PRACTICE
Go beyond the book to create your own innovation revolution
ACKNOWLEDGMENTS 232
INNOVATION BIBLIOGRAPHY 234
NOTES AND RESEARCH DATA 238
IMAGE CREDITS 251
INDEX 252
ABOUT THE AUTHORS 256
ABOUT DOBLIN AND MONITOR DELOITTE 258
Preface
On Innovating Effectively
In the middle of August in 2012, Congressional approval rating hit an all time low.1 This is saying something-the same figure has been less than impressive in earlier eras. Yet the United States Congress isn't the only institution with lukewarm support. People expect very little good news about the wars being fought (whether in Iraq, Afghanistan, or on Terror, Drugs, Poverty, or Ignorance). The promising Arab Spring has given way to a recurring pessimism about progress. Gnarly health problems are on a tear the world over-diabetes now affects over eight percent of Americans-and other expensive disease conditions such as obesity, heart disease, and cancer are also now epidemic. The cost of education rises like a runaway helium balloon, yet there is less and less evidence that it nets the students a real return on their investment. Police have access to ever more elaborate statistical models of crime, but there is still way too much of it. And global warming steadily produces more extreme and more dangerous conditions the world over, yet according to about half of our elected "leaders," it is still, officially, only a theory that can conveniently be denied.
And yet . . .
We steadily expect more from our computers, our smartphones, apps, networks, and games. We have grown to expect routine and wondrous stories of new ventures funded through crowdsourcing. We hear constantly of lives around the world transformed because of Twitter or Kahn Academy or some breakthrough discovery in medicine. Esther Duflo and her team at the Poverty Action Lab at MIT keep cracking tough problems that afflict the poor to arrive at solutions with demonstrated efficacy, and then, often, the Gates Foundation or another philanthropic institution funds the transformational solution at unprecedented scale.
Storytelling is in a new golden age-whether in live events, on the radio, or in amazing new television series that can emerge anywhere in the world and be adapted for global tastes. Experts are now everywhere, and shockingly easy and affordable to access. Indeed, it seems clear that all the knowledge we've been struggling to amass is steadily being amplified and swiftly getting more organized, accessible, and affordable-whether through the magic of elegant little apps or big data managed in ever-smarter clouds or crowdfunding sites used to capitalize creative ideas in commerce or science.
One way to make sense of these opposing conditions is to see us as being in a time of radical transformation. To see the old institutions as being challenged as a series of newer, more agile ones arise. In history, such shifts have rarely been bloodless, but this one seems to be a radical transformation in the structure, sources, and nature of expertise.2 Indeed, among innovation experts, this time is one like no other. For the very first time in history, we are in a position to tackle tough problems with ground-breaking tools and techniques.
What Do You Do When the Problems Are Real, the Stakes Are High, Time Is Short, and Abstract Answers Are Inadequate?
That is what we've written this book to address: how you can innovate effectively. How you can get the future to show up just slightly ahead of its regularly scheduled arrival. How you can give teams that can't afford to fail the robust methods they need to succeed-whether the problem they are tackling is small or large, trivial or epic.
Part of the innovation revolution is rooted in superior tradecraft: better ways to innovate that are suited for tougher problems. Yet most teams are stuck using goofy techniques that have been discredited long ago. This book is part of a new vanguard, a small group of leading thinkers who see innovation as urgent and essential, who know it needs to be cracked as a deep discipline and subjected to the same rigors as any other management science.
Our Journey to This Book
Ten Types of Innovation has had a long gestation period. Broadly stated, it codifies, structures, and simplifies three decades of work from a consulting firm in Chicago, Doblin, which I cofounded along with the brilliant design methodologist Jay Doblin. From its inception in 1980, Doblin has asked one pervasive, deceptively simple-seeming question: "How do we get innovation to succeed instead of fail?"
Over the years we have kept three important dimensions in dynamic tension. We have a theoretical side, where we ask and seek real answers to tough questions about innovation. Simple but critical ones like, "Does brainstorming work?" (it doesn't), along with deep and systemic ones like, "How do you really know what a user wants when the user doesn't know either?"3 We have an academic side, since many of us are adjunct professors at Chicago's Institute of Design,4 and this demands that we explain our ideas to smart young professionals in disciplined, distinctive ways. And third, we have an applied side, in that we have been privileged to adapt our innovation methods to many of the world's leading global enterprises and start-ups that hanker to be future leading firms.
From the beginning, Doblin has itself been interdisciplinary, mixing social sciences, technology, strategy, library sciences, and design into a frothy admixture that has always tried to blend both analysis, breaking tough things down, with synthesis, building new things up. Broadly, we think any effective innovation effort needs plenty of both, stitched together as a seamless whole.
The heart of this book is built around a seminal Doblin discovery: that there are (and have always been) ten distinct types of innovation that need be orchestrated with some care to make a game-changing innovation. If you stick with the book, you'll read about that soon enough. What you need to know now, at the outset, is that this is not just one thin discovery. Along with the framework itself, we also describe what you should do to surround this better way of innovating with even more robust protocols and processes.
Our Authoring Team
It is an axiom in writing that when you have a bunch of authors the resulting work is likely to be a compromised hash. Any movie you see with a whole string of screenwriters listed is unlikely to be brilliant. But at Doblin we do nearly everything in teams. This stems from the unique nature of innovation itself: no individual can possibly know enough all by himself or herself to crack tough innovation challenges, and the best teams have many different disciplines involved. So too with this book. It may help you to know the roles each of us played and thus better glimpse what kinds of contributions go into any complex synthesis.
As the long-time president of Doblin, I have pioneered many ideas and methods at the core of innovation effectiveness, including the Ten Types. I have dedicated my entire professional career to thinking about how to create appropriate tools and techniques-and about how our clients can most effectively use them in practice. I have spent more than 30 years learning and thinking about what makes innovation succeed or fail. As the principal author of the text, I am responsible for the basic arguments throughout, and the system of ideas here either succeeds or fails because of me.
Ryan Pikkel has an advanced degree in innovation skills from the Institute of Design and is himself a skilled designer. He managed the collaboration with a deep and talented team from our colleagues at Pentagram and he worked to ensure that every page in the book is as clear, concise, and accessible as possible. He is also personally responsible for the creation of the incredible Innovation Tactics Cards, which now permit us to codify and deconstruct any valuable innovation-or to help you to build one of your own with the help of robust, reusable modules.
Brian Quinn was for many years a traditional strategist, who left consulting to become a screenwriter, and then returned to the field-but only on the condition that he could focus on solving innovation problems for clients. This makes him one of the rare individuals who really can integrate most of the necessary components for innovation effectiveness-and he has done so repeatedly and reliably for several of our largest clients. His voice in the book has been crucial in helping to make the ideas more actionable for firms that need to innovate.
Helen Walters was the innovation and design editor at Bloomberg Businessweek. She has built an amazing personal network of practitioners and practices the world over. Of course, as a journalist, she values telling clear stories with solid facts and getting details right-an indispensable skill for a book with tales on every page.
Finally, our work was materially aided by Bansi Nagji. While he was not an author of this book, he played a role in refreshing and advancing the Ten Types of Innovation. More broadly, Bansi made innovation a strategic priority at Monitor and continues to do so today as a leader in Monitor Deloitte. The team is grateful for his support.
None of this may matter to you as a reader, since the book stands or falls as a unified whole. It mattered a very great deal to us as a team, though. We wanted to make a book that would reveal the whole, remarkable, and important emerging discipline of innovation, because so many people now see the urgent need to innovate. They sense that old ideas and structures must give way. They imagine that newer, better futures are out there, lurking in the loaming, just out of...
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