Which Innovation Framework do you use, the 10 types of innovation or the business model canvas?
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Larry Keeley compares two innovation frameworks: the 10 Types of Innovation and the Business Model Canvas (BMC). He notes that while both frameworks emphasize different aspects of business innovation, they map closely to each other, with the BMC offering better visual communication for understanding innovation beyond products. Keeley highlights that top innovators typically focus on multiple elements of innovation, suggesting that a broader approach can lead to greater competitive advantages.
Which Innovation Framework do you use, the 10 types of innovation or the business model canvas?
- 3. by Larry Keely https://www.doblin.com/ten-types Which innovation framework, the 10 types of innovation or the business model canvas, is more useful in helping people realise that 'innovation' isn't just about a product (or service)? by Osterwalder and Pigneur http://businessmodelgeneration.com/canvas/bmc
- 4. The first iteration of the 10 types of innovation in 1998 had 4 categories (Finance, Process, Offering and Delivery) and even had 'Business model' as one of the elements.
- 5. In 2011, Keeley refreshed the analysis and slightly restructured and simplified the framework, combining Finance and Process into one category called Configuration, changing 'Business model' into 'Profit model', combining the 'Enabling process' and 'Core process' into one element (Process), and changing Delivery into Experience.
- 6. Elements in the Configuration category focus on the innermost workings of an organisation
- 7. Elements in the Configuration category focus on the innermost workings of an organisation Elements in the Offering category focus on the core products and services offered by the organisation
- 8. Elements in the Offering category focus on the core products and services offered by the organisation Elements in the Experience category focus more on the customer-facing areas of the organisation. Elements in the Configuration category focus on the innermost workings of an organisation
- 9. Turning to the Business Model Canvas (BMC), there are 9 elements, or building blocks arranged spatially with the left side of the canvas focusing more on the efficiency of the organisation, and the right looking more at the value it provides. More on the 2 faces of the BMC later...
- 10. First, my attempt to see whether the 10 types of innovation could be mapped to the Business Model Canvas (BMC). +
- 12. They seem to map pretty cleanly. Profit model (how an organisation makes money) stretches across both Costs and Revenue.
- 13. Customer Engagement (fostering compelling interactions with customers) sits comfortable at the junction of Customer Relationships, Customer Segments, and Delivery Channels.
- 14. An organisation's core offering (product performance and service system) is what the BMC refers to as the Value Proposition.
- 15. Less clear was where to put 'Brand'. Keeley defines Brand as how an organisation represents its offerings, which seems to be strongly associated with the Value Proposition, so I've put it there, for now...
- 16. When I overlaid the Efficiency and Value categories, the blue Configuration elements populate the Efficiency side, while the orange elements (Offerings and Experience) populate the Value side. The elements in the centre, clustered around the Value Proposition, are a combination of Efficiency and Value, though I wonder if Brand should be shifted more to the Value side?
- 17. So, quite a lot of overlap in the basic elements of the 10 types and the BMC. But is one better than the other for helping people understand that innovation goes beyond products?
- 18. As a visual and communication aid, I use the BMC more, especially the jigsaw version because it emphasises the human element and the relationships between the building blocks. The spatial layout and the graphic representations of the elements (a truck for delivery, a heart for customer relationships) are fantastic learning and memory aids, particularly for people who aren't familiar with the different elements of a business model.
- 19. But, I also use the 10 types of Innovation because the authors conducted an impressive analysis on what best practice looks like for top innovators. A few juicy titbits: • 'more is mightier'--top innovators focus on 3 or more elements of innovation whereas average innovators look at less than 2. • 'Product performance', while important, is often the easiest for competitors to copy and rarely results in a long-term competitive advantage
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