Innovation Landscape Map
Tags: #🌲evergreen
Links: Innovation Strategy
Sources:
- (HBR) You Need an Innovation Strategy - 2015
- https://innovatingsociety.com/innovation-landscape-map-routine-radical-disruptive-and-architectural-innovation-2/
- https://info.boardofinnovation.com/hubfs/WIP_Mike_A1_Innovation%20landscape%20model.pdf?_hsmi=65086184
A Tool to help companies characterize innovations and make decisions on how to build an innovation portfolio when planning their Innovation Strategy.
Some important technology innovations are also accompanied by new business models. That's why the map takes this dimension into account.
The Model
There are two binary axis that generate four possibilities when combined:
- does the innovation requires new technical abilities (T)?
- does the innovation requires a new business model (B)?
Routine Innovation (-T-B)
Does not require technical skills nor a new business model.
Examples: [2]
- making a new 3D movie as Pixar
- creating a new version of Office for Microsoft
Often people say this type of innovation is myopic and not what companies should be focusing. Maybe they say that because of the Innovator's Dilemma.
Usually, vast amounts of profits come from incremental innovations. Microsoft is an example of this, generating billions of dollars creating incrementally better operating systems. Apple is the same, putting out innovative products once in a while and milking a lot of money from incremental products.
However, it is true to say that, unless provoked, a company will steer towards routine innovation by default.
Disruptive Innovation (-T+B)
Requires a new business model. The name is a reference to Innovator's Dilemma because often the company disrupt the business model of another companies as well.
Examples: [2]
- VOD for Blockbuster
- Ride-sharing for a Cab Company
Radical Innovation (+T-B)
Requires a new technical competence.
Examples:
- Biotech for drug discovery for pharmaceutical companies
Architectural Innovation (+T+B)
Combines both tech and business disruption. This is the most challenging for incumbents.
Examples:
- Digital Photography for traditional photography companies required investment on new tech (solid-state electronics, display, software) and a new way to make money selling cameras instead of film, paper and services.