5 types of innovationΒΆ
All business ideas are trying to improve things or add benefits.
How can you improve?
- Price
- Process innovation
- Same product, lower price
- Same product, higher price
- Usually works in Fashion and Education
- Higher price increase the perceived value
- Convenience
- Lowers friction
- Removes steps for customer to purchase
- Finding a cab - finding a cab, waiting, paying in cash. On uber you get an app, specify location and press a button.
- Speed
- How quickly the value can be delivered to customer
- Amazon Prime
- Quality
- Usually applies to the product and procurement segment
- Self-expression
- Do people feel better about themselves because they bought your product?
- GoPro - specs are lower than competition, prices are higher, no innovation. It's because of self-expressive benefit.
- Apple often sell more a lifestyle than the product.
You can improve multiple dimensions.