Do you want to grow your business? Are you searching for different types of business innovation that can improve the productivity of your workplace? Are you still confused about how to achieve innovation?
Well, you have arrived at the right place!
Business Innovation is the adoption and making of something new and unique that initiates business value. You can change the dimension of the business with your innovative ideas to take your business to the next level.
Innovation can benefit a business in the long run by improving brand recognition, increasing competitiveness, new partnerships, and relationships.
Top 4 Types of Business Innovation in 2020:
Innovation is essential in the workplace because it provides a better and fast connection with the market that leads to bigger opportunities in developing countries.
So, here are the four types of innovation in business that you should know in 2020,
- Incremental Innovation:
With low risk, you can grow your business with incremental innovation. For your business, this can be the most established innovation framework.
Most innovations are gradual, incremental, and continuous improvements in the existing concepts, services or products in the existing market.
One of the best examples of Incremental innovation is Google’s Gmail. Without multiple confusing ads, it delivers emails quickly.
Features of Incremental Innovation:
- It focuses on reducing costs.
- Low level of uncertainty.
- Modest technological transformations from existing platforms, services or products.
- It follows a formal stage-gate process.
- Low risk.
- Products can be made attractive and smaller without changing the core of functionality.
- Constant improvements can make services efficient.
- Easy to sell your products and services because people are already familiar with it.
Disruptive innovation is when new products and technologies are created to assist an existing market. It creates a new value network by creating a new market completely or by entering an existing market.
You can effectively use these types of innovation to convert non-customers into customers and can solve their evolving needs by creating new value streams. The best example of disruptive innovation is Netflix.
Features of disruptive innovation:
- Lower margins in the beginning.
- At first, it grows slower but after reaching mainstream it grows exponentially.
- Higher risks.
- Involves new business models and new technology.
- Measures of value and sales arguments are changed fundamentally.
- If everything is done correctly, there can be huge growth potential.
- Requires new capabilities.
- Disruptive innovation can be challenging for many businesses and organizations because of high risk.
- Radical Innovation:
Radical innovation simultaneously uses a new business model and revolutionary technology to a new market.
This kind of innovation is when the process, product or service with advanced technology has an impact on the high market and replaces an existing offering completely. This type of innovation requires hard work and patience.
Internet and personal computer are examples of radical innovations that have changed our lives and took it to the next level.
Features of Radical Innovation:
- It requires a lot of time.
- Involves technological development.
- Radical innovation is rare.
- Has similar characteristics to disruptive innovation.
- Solves global problems.
- It offers high technological advancements.
- Provides need and solutions to problems.
- This type of innovation occurs in the long term.
- Replaces an existing offering.
- Sustaining Innovation:
Sustaining innovation satisfies the needs of the customer by improving new value networks. It is completely the opposite of sustaining innovation by creating it’s existing in the current market.
With every iteration and reducing defects, the product performance of sustaining innovation is made much better. Pfizer, the world’s biggest pharmaceutical company by revenues, is the best example of sustaining innovation.
Sustaining innovation creates competition between companies and develops with good value. Routine innovation is also known as sustaining innovation as it entails to make a better product by creating its own strategy.
Features of sustaining innovation are as follow:
- Develops existing ones with better value.
- Enable top-line and large share market growth.
- It allows companies to compete against each other.
- Also known as routine innovation.
- This strategy entails making a better product.
- To engage your team in sustaining innovation, you should create an open communication for all.
- Ideas of sustaining innovation will come from listening.
Other Types of Innovations:
- Service Innovation.
- Product Innovation.
- Technological Innovation.
- Process Innovation.
- Marketing Innovation.
- Business Model Innovation.
- Architectural Innovation.
- Social Innovation.
Wrapping it Up!
For most companies, innovation is on strategic agenda with more than 80% of executives stating that it is essential for their growth strategy. There are various opportunities and innovations that can work in your business context.
Starting a business can be both risky and exciting. Before starting a business, you should be aware of the types of start-up pitfall which can ruin your business.
Therefore, the above mentioned are the best business innovations that you can implement in 2020.