Commoditization of services, stale products, need for Innovation? Sounds like you are in a familiar turf? You bet you are!
As products and services are becoming commodities, increasingly organizations are looking for the ways to differentiate themselves through further innovations. Organizations are fiddling with human-centred approach to solve problems and improve offerings. But one of the missing ingredients in the dish is identification of ‘Type of Innovation’.
Let’s take a step back and go back on how we can provide new offerings to our consumers. Now all of you with business degrees are aware of Ansoff’s Growth Matrix (Yes! It’s your moment). I can extend it to identify the route I want to take for business growth.
To support the growth, an organization needs 3 innovation types – Process, Incremental, and Lateral.
And accordingly organizations need to select their teams. Depending on the growth strategy, organizations need to have a right balance of Process Innovators, Incremental Innovators and Lateral Innovators. An organization looking to launch an innovative product and bring the disruption in the marketplace cannot do so with the team full of Process Innovators or Incremental Innovators.
In an organization looking to setup a team based on innovation culture, Senior Management plays the role of facilitator. The organizational structure will take the shape depending on the type of business. An established services business will look something like this:
Whereas a tech start-up will look like this: