Innovation and the Degree of Innovativeness

Innovation is about the implementation of a new idea for the purpose of creating value: value for the firm and value for the consumer. Just as the definition implies, innovation:

• can be large or small;
• is not absolute, but multidimensional;
• can include anything that the firm and its customers find useful and valuable;
• can be evolutionary, but not duplicative;

Innovation as the ‘implementation of a new idea’ has multidimensional qualities that distinguish the newness in its innovativeness: degree of change in its originality, value and impact. The value of the innovation is certainly in the eye of the beholder, such as in the case where the innovation can be a significant value for the firm, while delivering marginal (if any) improvement for the users.

As mentioned before, innovation occurs across a list of varying dimensions: technology, process, product, service, business model, value-delivery, brand, design, quality, market, customer/segment, … The newness aspect of the innovation can be seen as incremental (continuous, evolutionary, sustaining), radical (discontinuous, revolutionary, breakthrough, disruptive), or anything in between. By utilizing applicable innovation attributes one can measure the perceived innovativeness of the innovation: cost, adoptability, novelty, quality, risk, profitability, usability, viral-ness, image, originality, usefulness, …

Radar charts (spider diagrams) can be quite useful in mapping out your innovativeness in the dimensions that are relevant to you, to your innovation, and to your market. Furthermore, they can help you analyze how you compare against your competitors, your market and your industry. Although there is no standard methodology for determining the degree of innovativeness of your innovations, the process itself can be quite valuable.

• Measure your competitiveness: the more dimensions you are innovating, the more difficult for your competitors to copy you, and more competitive you are.
• Benchmark and measure your innovativeness: the process enables benchmarking against your previous innovations, your competitors, markets and industry. Process can provides insights and new opportunities for innovation.
• Manage according to innovation newness: radical innovations requires a different innovation management style than incremental ones. Utilizing supportive management tactics will improve the success rates of your innovation.
• Improve your portfolio: understanding where you are innovating helps boost your innovation portfolio ensuring better balance and comprehensive coverage.

Further, this innovativeness can be collectively assessed as to its overall impact on the business unit, the firm, the market or the industry. As an example, the Fast Company article “Expand Your Innovation Horizons” highlights this portfolio exercise for your products and services utilizing the ‘horizon’ concept.

• horizon 1 innovations: incrementally extend existing business;
• horizon 2 innovations: aim to create new categories in existing markets;
• horizon 3 innovations: aim to disrupt existing markets via new business models, processes or technology;

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