Doblin's 10 Types of Innovation ®
Wednesday, November 27, 2013
All successful companies develop their competitive edge through some form of innovation.
However, many focus on one area of innovation only. For instance, they may only look at improving customer services, or creating new products.
While all this is well and good, they may be able to do a lot better by innovating in other areas as well.
When we spread innovation over multiple areas, it becomes much more difficult for competitors to copy us. It can also create much more value. So, where should we look to innovate?
This is where Doblin's 10 Types of Innovation can help. This useful tool highlights 10 key areas that we can look at when we need to innovate.
About the Tool
The tool was created by the Doblin Group , an innovation consulting firm, which developed the 10 Types of Innovation* after 27 years of research with a variety of businesses and organizations. Doblin says that you're far more likely to have a successful organization if you focus on innovation in at least four of the ten areas.
The 10 types of innovation are grouped into four broad categories:
Finance
Business Model – how your organization generates profit.
Networking and Alliances – how you manage supplier relationships and build strategic partnerships.
Process
Enabling Process – the supporting tasks and processes that happen in your organization. (These are often generic tasks that you could outsource to contractors or other organizations.)
Core Process – people and processes that give you a competitive advantage in your market.
Offering
Product Performance – the basic features of your product.
Product System – this is your "offer," and includes any tailored or customized product offers that you have available.
Service – the service and services that you provide to potential clients or customers.
Delivery
Channel – how customers find out about your product or service.
Brand – how you communicate the value of your company, your product or your service to your customers.
Customer Experience – what customers think or feel about you when they encounter you.
Applying the 10 Types
Doblin's 10 Types of Innovation give you an awareness of areas that you can focus on to improve your organization. Without this awareness, it's likely that you'll focus on only one or two key areas.
You can focus your innovative efforts over a much broader area when you have this awareness, increasing the likelihood of creating more value, and creating a unique offering that is difficult for competitors to copy.
There are many ways to innovate in each of the 10 areas – we've highlighted some strategies below to help you get started in each area.
Tip:
The Simplex Process and the Innovation Circle are useful general tools that will help you innovate in all of the areas that we cover below. Our article on Generating New Ideas can also help you innovate in different parts of your organization.
Finance
1. Business Model
This is where you look at your organization's business model, and think about how you could increase your profit. Where does most of your revenue come from? Are there any bottlenecks that are limiting revenue, or could you be doing other things to generate revenue?
Our articles on SWOT Analysis , PEST Analysis and Core Competency Analysis can help you identify opportunities; our article on Porter's Diamond can help you ensure that you're thinking in the right areas; and our article on Porter's Five Forces helps you take appropriate advantage of market power.
You can also use VRIO Analysis to make sure that you're making effective use of the resources you have available.
2. Networking and Alliances
Look at how your organization is currently working with its suppliers. Approaches like supplier relationship management , procurement management and the Kraljic Portfolio Model will help you manage your supplier relationships strategically.
Your organization should be focusing on its strengths, and outsourcing its weaker areas to a network of suppliers and contractors. (See the next area for more on this.)
Also, can you create strategic alliances with other organizations to make best use of your mutual opportunities?
Process
3. Enabling Process
There will be some organizational processes that don't give your organization much competitive advantage – examples of this can include payroll management, IT support, and suchlike. In other areas, external providers may have more expertise and skill than internal providers – for example, in marketing, design, or specialist technology delivery.
In all of these cases, it can make sense to outsource this work. Our articles on the Outsourcing Decision Matrix and Working with Outsourced Suppliers will help you think about this.
Tip:
When you do keep routine processes within your organization, you may be able to use techniques such as Lean Manufacturing and the 5S System to work more efficiently and productively.
4. Core Process
Does your organization have any unique processes that haven't been mastered by your competitors? Or, are you looking to create a core process that will differentiate you from the competition?
Look at your own core processes, and try to find ways to make them unique and more efficient. Tools like Value Chain Analysis , Porter's Value Chain , Core Competence Analysis , USP Analysis , and the Product-Process Matrix can help here. (If you're stuck on where you could improve, our article on Business Process Reengineering has some useful strategies that can help you get started.)
Offering
5. Product Performance
When people think of innovation, product performance is often where they begin.
Look at the products or services that your organization offers. How could you improve these to make them more appealing or more effective for your customers?
You can start improving product performance with a Conjoint Analysis . This helps you measure buyer preference so you know what to improve. You can also use Kano Model Analysis to explore product improvement.
6. Product System
Look at your current product line or offering. There might be ways you can customize these items for customers, or bundle certain products or services together to offer a more complete solution.
(Again, Conjoint Analysis and Kano Model Analysis can be useful here.)
7. Service
You should be providing the very best service possible to your customers. As well as offering them a high quality product, this also involves improving every step of the information-gathering and purchase process.
Look at how your organization treats its customers. How could you improve the process for your customers?
Value Chain Analysis and Porter's Value Chain can help you map these out. You can also help your people serve customers better with our article on the Customer Service Mindset , and you can improve the way you manage complaints and feedback , so that you use this valuable feedback and business improvement channel properly.
Delivery
8. Channel
How does information about your products and services reach your customers? What channels does your organization use to get your message across? What new channels could you use to reach current and potential customers?
Start by looking at your marketing mix and web marketing tactics to make sure you're using all the channels you have available. Brainstorm new ways that you could get your product or service in front of new customers. For instance, could you use social networking, or get involved in charity events in your community?
9. Brand
Re-analyze your brand's message by creating a Value Proposition . This will help you communicate the benefits and value of your brand to your customers.
You can also review and refresh customer-facing material to enhance your brand, as well as engaging in a whole range of other brand-building activities.
10. Customer Experience
What do your customers experience when they do business with your organization? How could you improve this experience to add greater value for them? How can your brand or organization become part of their life in a more personal way?
You can improve customer service with Value Chain Analysis (again) and with Customer Experience Mapping , which helps you and your team experience your business through the eyes of your customers. You can also review user experience on your website – work in this area can yield huge business improvements for organizations with complex websites.
Key Points
Doblin's 10 Types of Innovation was created by The Doblin Group, an innovation consulting firm.
The 10 areas are divided into four categories, as follows:
Finance
Business Model.
Networking and Alliances.
Process
Enabling Process.
Core Process.
Offering
Produce Performance.
Product System.
Service.
Delivery
Channel.
Brand.
Customer Experience.
The tool is useful, because it highlights all of the areas where you can innovate to create more value. This helps you build an exceptionally innovative business – one that is very difficult for your competitors to copy.
* The work “Doblin’s 10 Types of Innovation” is the copyright of Doblin Group .
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Creativity, Creativity Techniques, Skills
However, many focus on one area of innovation only. For instance, they may only look at improving customer services, or creating new products.
While all this is well and good, they may be able to do a lot better by innovating in other areas as well.
When we spread innovation over multiple areas, it becomes much more difficult for competitors to copy us. It can also create much more value. So, where should we look to innovate?
This is where Doblin's 10 Types of Innovation can help. This useful tool highlights 10 key areas that we can look at when we need to innovate.
About the Tool
The tool was created by the Doblin Group , an innovation consulting firm, which developed the 10 Types of Innovation* after 27 years of research with a variety of businesses and organizations. Doblin says that you're far more likely to have a successful organization if you focus on innovation in at least four of the ten areas.
The 10 types of innovation are grouped into four broad categories:
Finance
Business Model – how your organization generates profit.
Networking and Alliances – how you manage supplier relationships and build strategic partnerships.
Process
Enabling Process – the supporting tasks and processes that happen in your organization. (These are often generic tasks that you could outsource to contractors or other organizations.)
Core Process – people and processes that give you a competitive advantage in your market.
Offering
Product Performance – the basic features of your product.
Product System – this is your "offer," and includes any tailored or customized product offers that you have available.
Service – the service and services that you provide to potential clients or customers.
Delivery
Channel – how customers find out about your product or service.
Brand – how you communicate the value of your company, your product or your service to your customers.
Customer Experience – what customers think or feel about you when they encounter you.
Applying the 10 Types
Doblin's 10 Types of Innovation give you an awareness of areas that you can focus on to improve your organization. Without this awareness, it's likely that you'll focus on only one or two key areas.
You can focus your innovative efforts over a much broader area when you have this awareness, increasing the likelihood of creating more value, and creating a unique offering that is difficult for competitors to copy.
There are many ways to innovate in each of the 10 areas – we've highlighted some strategies below to help you get started in each area.
Tip:
The Simplex Process and the Innovation Circle are useful general tools that will help you innovate in all of the areas that we cover below. Our article on Generating New Ideas can also help you innovate in different parts of your organization.
Finance
1. Business Model
This is where you look at your organization's business model, and think about how you could increase your profit. Where does most of your revenue come from? Are there any bottlenecks that are limiting revenue, or could you be doing other things to generate revenue?
Our articles on SWOT Analysis , PEST Analysis and Core Competency Analysis can help you identify opportunities; our article on Porter's Diamond can help you ensure that you're thinking in the right areas; and our article on Porter's Five Forces helps you take appropriate advantage of market power.
You can also use VRIO Analysis to make sure that you're making effective use of the resources you have available.
2. Networking and Alliances
Look at how your organization is currently working with its suppliers. Approaches like supplier relationship management , procurement management and the Kraljic Portfolio Model will help you manage your supplier relationships strategically.
Your organization should be focusing on its strengths, and outsourcing its weaker areas to a network of suppliers and contractors. (See the next area for more on this.)
Also, can you create strategic alliances with other organizations to make best use of your mutual opportunities?
Process
3. Enabling Process
There will be some organizational processes that don't give your organization much competitive advantage – examples of this can include payroll management, IT support, and suchlike. In other areas, external providers may have more expertise and skill than internal providers – for example, in marketing, design, or specialist technology delivery.
In all of these cases, it can make sense to outsource this work. Our articles on the Outsourcing Decision Matrix and Working with Outsourced Suppliers will help you think about this.
Tip:
When you do keep routine processes within your organization, you may be able to use techniques such as Lean Manufacturing and the 5S System to work more efficiently and productively.
4. Core Process
Does your organization have any unique processes that haven't been mastered by your competitors? Or, are you looking to create a core process that will differentiate you from the competition?
Look at your own core processes, and try to find ways to make them unique and more efficient. Tools like Value Chain Analysis , Porter's Value Chain , Core Competence Analysis , USP Analysis , and the Product-Process Matrix can help here. (If you're stuck on where you could improve, our article on Business Process Reengineering has some useful strategies that can help you get started.)
Offering
5. Product Performance
When people think of innovation, product performance is often where they begin.
Look at the products or services that your organization offers. How could you improve these to make them more appealing or more effective for your customers?
You can start improving product performance with a Conjoint Analysis . This helps you measure buyer preference so you know what to improve. You can also use Kano Model Analysis to explore product improvement.
6. Product System
Look at your current product line or offering. There might be ways you can customize these items for customers, or bundle certain products or services together to offer a more complete solution.
(Again, Conjoint Analysis and Kano Model Analysis can be useful here.)
7. Service
You should be providing the very best service possible to your customers. As well as offering them a high quality product, this also involves improving every step of the information-gathering and purchase process.
Look at how your organization treats its customers. How could you improve the process for your customers?
Value Chain Analysis and Porter's Value Chain can help you map these out. You can also help your people serve customers better with our article on the Customer Service Mindset , and you can improve the way you manage complaints and feedback , so that you use this valuable feedback and business improvement channel properly.
Delivery
8. Channel
How does information about your products and services reach your customers? What channels does your organization use to get your message across? What new channels could you use to reach current and potential customers?
Start by looking at your marketing mix and web marketing tactics to make sure you're using all the channels you have available. Brainstorm new ways that you could get your product or service in front of new customers. For instance, could you use social networking, or get involved in charity events in your community?
9. Brand
Re-analyze your brand's message by creating a Value Proposition . This will help you communicate the benefits and value of your brand to your customers.
You can also review and refresh customer-facing material to enhance your brand, as well as engaging in a whole range of other brand-building activities.
10. Customer Experience
What do your customers experience when they do business with your organization? How could you improve this experience to add greater value for them? How can your brand or organization become part of their life in a more personal way?
You can improve customer service with Value Chain Analysis (again) and with Customer Experience Mapping , which helps you and your team experience your business through the eyes of your customers. You can also review user experience on your website – work in this area can yield huge business improvements for organizations with complex websites.
Key Points
Doblin's 10 Types of Innovation was created by The Doblin Group, an innovation consulting firm.
The 10 areas are divided into four categories, as follows:
Finance
Business Model.
Networking and Alliances.
Process
Enabling Process.
Core Process.
Offering
Produce Performance.
Product System.
Service.
Delivery
Channel.
Brand.
Customer Experience.
The tool is useful, because it highlights all of the areas where you can innovate to create more value. This helps you build an exceptionally innovative business – one that is very difficult for your competitors to copy.
* The work “Doblin’s 10 Types of Innovation” is the copyright of Doblin Group .
