TEN TYPES OF

INNOVATION
THE BUILDING BLOCKS OF BREAKTHROUGHS
At the heart of any new discipline there often lies a simple,
organizing system—an underlying structure and order
governing what works and what fails. This is what the Ten Types
of Innovation® framework brings to innovation. Consciously
understanding it makes innovation easier and more effective.

WE DISCOVERED THE TEN TYPES OF INNOVATION IN 1998.

SINCE THEN WE HAVE LEARNED:

Innovation mostly fails. It doesn’t need to.

You shouldn’t let it.

Innovation almost never fails due to a lack of creativity.

It’s almost always because of a lack of discipline.

The most certain way to fail is to focus only on products.

Successful innovators use many types of innovation.

Successful innovators analyze the patterns of innovation in their industry.

Then they make conscious, considered choices to innovate in different ways.

Innovations can be broken down and analyzed.

When you do so, you will learn why most fail and a few succeed.

Innovations can be built up systematically.

Doing so increases your odds of success exponentially.
THE TEN TYPES OF STRENGTH IN NUMBERS

INNOVATION
Simple innovations use one or two types of innovation and every
company needs to pursue them. Failure to consistently, relent-
lessly improve the known is one of the surest routes to failure.
Unfortunately, too many firms do only simple innovation. In today’s
AN OVERVIEW contested markets, simple innovations alone are never enough for
long-term success. They can build a lead on competitors, but they
don’t create the firms, brands, or platforms that thrill us.
The Ten Types framework is simple and intuitive. The Ten Types framework is structured into three
When a market grows up and gets complicated, it demands more
It is a useful tool you can use both to diagnose color-coded categories. The types on the left side sophisticated innovation, which uses many types of innovation
and enrich an innovation you’re working on, or to of the framework are the most internally focused combined elegantly and orchestrated with care. Under the covers,
analyze existing competition. It makes it and distant from customers; as you move toward inside your firm, these require working across internal boundaries
and silos — challenges that bring additional complexity. You can
especially easy to spot errors of the right side, the types become increasingly cut through this with multi-disciplinary teams to bring in the
omission — missing dimensions that will make a apparent and obvious to end users. To use a necessary talent and knowledge, and with systems in place to tell
everyone how they can tackle tough challenges with curiosity,
concept stronger. theatrical metaphor, the left of the framework is
confidence, and courage.
backstage; the right is onstage.
Naturally, sophisticated innovations are more difficult to pull off,
not least because they have longer development horizons than
simple innovations. But consider the flip side: once you launch them,
they are likely both to delight customers and confound competitors.
Often you will be able to succeed with them for years before
challengers can catch up. Almost all of the enterprises that we identify
Profit Network Structure Process Product Product Service Channel Brand Customer as leading innovators routinely use multiple types of
Model Performance System Engagement innovation — and handily outperform the average firms that
innovate more naïvely.

SIX PRINCIPLES FOR USING THE

CONFIGURATION OFFERING EXPERIENCE TEN TYPES EFFECTIVELY

1
UNDERSTAND ALL TEN TYPES
PROFIT MODEL STRUCTURE PRODUCT PERFORMANCE SERVICE BRAND Virtually all projects can improve just by knowing and deeply
The way in which you make money Alignment of your talent and assets Distinguishing features and functionality Support and enhancements that surround Representation of your offerings and understanding the value and subtleties of each of the types.
your offerings business
2
For example, how Netflix turned the video For example, how Whole Foods has built a For example, how OXO Good Grips cost For example, how “Deliver WOW through For example, how Virgin extends its DE-EMPHASIZE RELIANCE ON PRODUCTS AND
rental industry on its head by implementing a robust feedback system for internal teams a premium but its “universal design” has a service” is Zappos’ #1 internal core value brand into sectors ranging from soft drinks TECHNOLOGY
subscription model loyal following to space travel These are the easiest capabilities for competitors to copy.

3
THINK ABOUT CATEGORIES AS WELL AS TYPES
NETWORK PROCESS PRODUCT SYSTEM CHANNEL CUSTOMER ENGAGEMENT Consciously try to imagine new ways to configure assets, build
Connections with others to create value Signature or superior methods for doing Complementary products and services How your offerings are delivered to Distinctive interactions you foster platforms, and foster fresh experiences.
your work customers and users
4
USE THE TYPES THAT MATTER MOST
For example, how Target works with For example, how Zara’s “fast fashion“ For example, how Nike+ parlayed shoes, For example, how Nespresso locks in For example, how Wii’s experience draws
Use diagnostics to understand which types you and others
renowned external designers to strategy moves its clothing from sketch to sensors, apps and devices into a sport customers with its useful members more from the interactions in the room
in your industry tend to overlook.
differentiate itself shelf in record time lifestyle suite only club than on-screen
5
UNDERSTAND WHAT YOUR USERS REALLY NEED
User research can help you know what is relevant to customers
and what surprises other types might help to deliver.

6
USE ENOUGH OF THE TYPES TO MAKE A SPLASH
Using five or more types, integrated with care, is nearly always
enough to reinvent a category and become newsworthy.

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APPLYING THE TEN TYPES OF INNOVATION | METHOD

Founded in San Francisco in 2000, Method was the brainchild of two Method has also innovated its brand, building a company that stands for
roommates-turned-entrepreneurs. Branding expert Eric Ryan teamed much more than just tedious cleaning. As well as being eco-friendly,
up with former climate scientist Adam Lowry to create a non-toxic line of packaging has been designed to be both colorful and countertop-friendly,
natural home care products. The various offerings are now sold in more while the company not only has a wide following on leading home decor
than 40,000 retailers worldwide, including Target, Whole Foods, and and design blogs, but also hosts its own community site, known as
Kroger. In 2012, the company was bought by European eco-pioneer Ecover “People Against Dirty.”
to form what was described as “the world’s largest green
Image Credit :
cleaning company.”
Method hand soap
courtesy of Method

With a strong emphasis on sustainability and environmental sensitivity,

the vast majority of Method’s cleaning bottles are made from 100%
post-consumer recycled plastic while the company itself is a “Cradle to
Cradle” endorsed company; more than 60 of its products are certified with
the C2C stamp of environmentally friendly approval. Internally, Method
practices what it preaches: it offsets its carbon emissions,
works within a LEED-certified sustainable office, and it does not test
its products on animals.

Profit Network Structure Process Product Product Service Channel Brand Customer
Customer
Model Performance System Engagement
Engagement

CONFIGURATION OFFERING EXPERIENCE

1 2 3 4 5

FIVE TYPES OF INNOVATION

1 3 4
Method outsourced production to more than 50 Method’s product not With its readily identifiable, bright, and colorful packaging
separate subcontractors to develop a nimble and only kills germs and (originally created by industrial designer Karim Rashid),
flexible manufacturing process. grime, it was developed Method built a big following in home décor and design blogs
to avoid using toxic and its bottles have prompted instant on-shelf recognition.
2 chemicals or destructive
In a process the company calls “greensourcing,” production practices. The 5
Method worked with suppliers and manufacturers company adhered to “the Method created a community called “People Against Dirty”
to track the environmental impact of making its precautionary principle,” that offered perks, deals, and early looks at new products
products. It also identified best practices to improve meaning that if there was a for customers. However, to broaden the brand’s appeal,
the water, energy, and material efficiency of its chance that an ingredient they opened the community beyond customers and invited
manufacturing processes. wasn’t safe, it didn’t use it. anyone interested in making the planet a cleaner place; a
tactic which advanced the company’s brand promise and
extended its reach to potential customers.

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