Book review: "Ten types of innovation"

The consulting group Doblin in Chicago has published a book on the innovation process in companies. Their main point is that each real life innovation should utilise three to five out of a total of ten ideal types of innovation. This will maximise the chances of commercial success. Here are the ten types:

• Profit model. How to make money
• Network. How to connect with others to create value
• Structure. How you organize and align your talent and assets
• Process. How you use signature or superior methods to do your work
• Product performance. How you develop distinguishing features and functionality
• Product system. How you create complementary products and services
• Service. How you support and amplify the value of your offerings
• Channel. How you deliver your offerings to customers and users
• Brand. How you represent your offerings and business
• Customer engagement. How you foster compelling interactions

Source: Doblin

Note that the types refer to innovation. All products need a channel and a brand for instance. What is meant here is a new type of distribution channel or a new brand image, not the usage of existing distribution and brands.

I find this framework quite interesting. During the industrial revolution, companies learnt to make product innovations. The world witnessed the emergence of many radical innovations. Quite quickly, companies also learnt to make process innovations. The textile industry which modernised in the late 19th century is probably the first major example of process innovation. Many of the other types of innovation are creations of the early 20th century (e.g. branding, structure). Some are even creations of the late 20th century (e.g. customer engagement, network).

The value of the framework is not that any of the dimensions are novel. The key point is that to maximise the chances of success, each real life innovation should draw on three to five of the ideal types. Very often an inventor comes up with a prototype product just to later find out that the commercial success was gained by somebody totally different. Product innovation alone was not a good recipe for success in the past and it is even less so in today's more competitive environment.

This is not an academic book and I wish some of the material were a bit more rigourous. I think this book will create interest among academics to test and improve the framework. The book is actually a bit boring to read, but it is full of examples. Recommended