Types of Innovation

1. Types of Innovation POSMIT Lab. (POSTECH Strategic Management of Information and Technology) 2011. 9. 22.

2. Contents

3. Product vs. Process Hybrid cars Smart Phones HD TV, 3D TV • Product Innovation • Embodied in the outputs of an organization • In the outputs: Goods or Services • Examples • Process Innovation • Innovations in the way an organization conducts its business • In Producing or Marketing goods or services • Examples • Redesign of Industry Value Chain: • Customer Self Service (e.g. self-oiling service) • Customer-to-customer (e.g. eBay) • Redesign of Processes: • Use of real-time and geographical information (e.g. Asiana Airlines Baggage handling system) • Workflow management and document management (e.g. ERP)

4. Radical vs. Incremental Film Camera  Digital Camera Slimmer or Smaller • Radical Innovation • New and different from previously existing products and processes • Example • Incremental Innovation • Minor change from (or adjustment to) existing practices • Example

5. Competence Enhancing vs. Competence Destroying Intel’s Pentium 4 built on the technology for Pentium III Electronic calculators rendered Keuffel & Esser’s slide rule expertise obsolete • Competence-enhancing Innovation • Builds on existing knowledge and skills • Example • Competence Destroying Innovation • Renders existing competencies Obsolete • Example

6. Architectural vs. Component High-wheel bicycle to Safety bicycle ABS of automobile • Architectural Innovation • Changes in the overall design of a system • Example • Component Innovation • Changes to one or more components • Example