Ten Types of Innovation (Larry Keeley et al.)
Problem
Your organization cannot develop every important capability on its own.
Action
Form alliances with organizations that provide complementary strengths.
Outcome
You create greater value than either organization could alone.
Chapter: Configuration - Network - Alliances Innovations
Problem
Working independently limits innovation.
Action
Work closely with partners to create and improve offerings together.
Outcome
Solutions become stronger through shared expertise.
Chapter: Configuration - Network - Collaboration Innovations
Problem
Customers often need more than one product to achieve their goals.
Action
Partner with organizations whose offerings complement your own.
Outcome
Customers receive a more complete solution.
Chapter: Configuration - Network - Complementary Partnering Innovations
Problem
Duplicate activities increase costs and complexity.
Action
Combine similar operations into shared resources.
Outcome
The organization operates more efficiently.
Chapter: Configuration - Network - Consolidation Innovations
Problem
Competing alone can limit valuable opportunities.
Action
Work with competitors on initiatives that benefit both organizations.
Outcome
New opportunities become possible.
Chapter: Configuration - Network - Coopetition Innovations
Problem
Owning every location slows expansion.
Action
Allow qualified franchisees to operate your proven business model.
Outcome
The business grows with less capital.
Chapter: Configuration - Network - Franchising Innovations
Problem
Building new capabilities internally can take too long.
Action
Use mergers or acquisitions to gain strategic assets and expertise.
Outcome
Business growth accelerates.
Chapter: Configuration - Network - Merger / Acquisition Innovations
Problem
Internal teams cannot generate every valuable idea.
Action
Invite customers, partners, and experts to contribute innovations.
Outcome
The flow of valuable ideas increases.
Chapter: Configuration - Network - Open Innovation Innovations
Problem
Used products and assets lose value when they are ignored.
Action
Develop markets for resale, refurbishment, or reuse.
Outcome
Existing assets generate additional value.
Chapter: Configuration - Network - Secondary Markets Innovations
Problem
Poor coordination creates delays and waste.
Action
Share planning and information across suppliers, production, and distribution.
Outcome
Products move through the supply chain more efficiently.
Chapter: Configuration - Network - Supply Chain Integration Innovations
Problem
Small internal teams have limited perspectives.
Action
Use crowdsourcing to collect ideas and solutions from many contributors.
Outcome
Innovation options increase.
Chapter: Configuration - Process - Crowdsourcing Innovations
Problem
Rigid production cannot respond quickly to changing demand.
Action
Design manufacturing systems that can switch efficiently between products.
Outcome
Production becomes more responsive.
Chapter: Configuration - Process - Flexible Manufacturing Innovations
Problem
Valuable ideas lose value when they are not protected.
Action
Manage intellectual property as a strategic business asset.
Outcome
Innovation generates lasting returns.
Chapter: Configuration - Process - Intellectual Property Innovations
Problem
Unnecessary work increases cost without creating customer value.
Action
Continuously remove activities that do not improve the product.
Outcome
Production becomes more efficient.
Chapter: Configuration - Process - Lean Production Innovations
Problem
One standard approach does not fit every market.
Action
Adjust products and operations to local customer needs.
Outcome
Customers receive more relevant solutions.
Chapter: Configuration - Process - Localization Innovations
Problem
Poor logistics increases costs and delays.
Action
Improve transportation, storage, and delivery as one system.
Outcome
Products reach customers more reliably.
Chapter: Configuration - Process - Logistics Systems Innovations
Problem
Producing too early creates excess inventory.
Action
Start production only after customer demand is confirmed.
Outcome
Inventory costs decrease.
Chapter: Configuration - Process - On-Demand Production Innovations
Problem
Guessing leads to poor planning.
Action
Use predictive analytics to forecast demand and business outcomes.
Outcome
Decisions become more accurate.
Chapter: Configuration - Process - Predictive Analytics Innovations
Problem
Manual repetition wastes time and creates errors.
Action
Replace repetitive work with automated systems.
Outcome
Processes become faster and more consistent.
Chapter: Configuration - Process - Process Automation Innovations
Problem
Inefficient processes waste time and resources.
Action
Measure performance and remove process bottlenecks.
Outcome
Work is completed with less waste.
Chapter: Configuration - Process - Process Efficiency Innovations
Problem
Different methods create inconsistent results.
Action
Use standard processes for repeatable activities.
Outcome
Quality becomes more consistent.
Chapter: Configuration - Process - Process Standardization Innovations
Problem
Poor process design weakens execution.
Action
Build processes that directly support strategic goals.
Outcome
Daily work strengthens business performance.
Chapter: Configuration - Process - Strategic Design Innovations
Problem
Companies overlook valuable customer knowledge.
Action
Invite users to suggest improvements and new ideas.
Outcome
Products evolve with customer needs.
Chapter: Configuration - Process - User-Generated Innovations
Problem
Charging every user limits adoption.
Action
Offer free access while earning revenue from advertisers.
Outcome
The user base grows faster.
Chapter: Configuration - Profit Model - Ad-Supported Innovations
Problem
Fixed prices do not always reflect market demand.
Action
Use auctions where buyers compete for the offering.
Outcome
Prices better match market value.
Chapter: Configuration - Profit Model - Auction Innovations
Problem
Buying related products separately creates extra effort.
Action
Package complementary products into one offer.
Outcome
Customers receive greater convenience.
Chapter: Configuration - Profit Model - Bundled Pricing Innovations
Problem
High operating costs reduce competitiveness.
Action
Design operations to minimize unnecessary expenses.
Outcome
The business competes more effectively on price.
Chapter: Configuration - Profit Model - Cost Leadership Innovations
Problem
One price does not fit every customer.
Action
Charge separately for different products, services, or features.
Outcome
Customers pay only for the value they choose.
Chapter: Configuration - Profit Model - Disaggregated Pricing Innovations
Problem
Large upfront payments discourage customers.
Action
Offer financing that spreads payments over time.
Outcome
More customers can afford to buy.
Chapter: Configuration - Profit Model - Financing Innovations
Problem
Static prices miss revenue opportunities.
Action
Adjust prices based on demand or customer conditions.
Outcome
Revenue improves.
Chapter: Configuration - Profit Model - Flexible Pricing Innovations
Problem
Idle customer payments create little business value.
Action
Manage temporary customer funds to strengthen the business.
Outcome
Cash resources become more productive.
Chapter: Configuration - Profit Model - Float Innovations
Problem
Unlimited availability reduces customer urgency.
Action
Limit supply or access intentionally.
Outcome
Perceived value increases.
Chapter: Configuration - Profit Model - Forced Scarcity Innovations
Problem
Customers hesitate to pay until they experience value.
Action
Offer a useful free version with paid upgrades.
Outcome
More users become paying customers.
Chapter: Configuration - Profit Model - Freemium Innovations
Problem
Revenue opportunities often end after the first sale.
Action
Develop additional products or services for current customers.
Outcome
Customer lifetime value increases.
Chapter: Configuration - Profit Model - Installed Base Innovations
Problem
Intellectual assets often remain underused.
Action
License valuable technology, brands, or intellectual property to others.
Outcome
New recurring revenue is generated.
Chapter: Configuration - Profit Model - Licensing Innovations
Problem
Customers need reasons to remain engaged.
Action
Offer ongoing benefits through membership programs.
Outcome
Customer loyalty increases.
Chapter: Configuration - Profit Model - Membership Innovations
Problem
Flat pricing does not reflect customer consumption.
Action
Bill customers based on how much they use.
Outcome
Pricing better matches delivered value.
Chapter: Configuration - Profit Model - Metered Use Innovations
Problem
Large purchases discourage many customers.
Action
Sell low-cost features or items individually.
Outcome
Purchase frequency increases.
Chapter: Configuration - Profit Model - Microtransactions Innovations
Problem
Standard products do not satisfy every customer.
Action
Create premium versions with clearly superior benefits.
Outcome
Higher-value customers are better served.
Chapter: Configuration - Profit Model - Premium Innovations
Problem
Customers avoid commitments when risk feels too high.
Action
Structure agreements that distribute financial risk between both parties.
Outcome
Customers become more willing to commit.
Chapter: Configuration - Profit Model - Risk Sharing Innovations
Problem
Large individual sales are difficult to sustain.
Action
Design the business to profit from a high volume of small transactions.
Outcome
Revenue becomes more scalable.
Chapter: Configuration - Profit Model - Scaled Transactions Innovations
Problem
One-time purchases create unpredictable income.
Action
Offer ongoing access through subscription plans.
Outcome
Revenue becomes more predictable.
Chapter: Configuration - Profit Model - Subscription Innovations
Problem
Customers and providers struggle to find each other efficiently.
Action
Build a platform that enables exchanges between different participant groups.
Outcome
More valuable transactions take place.
Chapter: Configuration - Profit Model - Switchboard Innovations
Problem
Fixed prices discourage some potential buyers.
Action
Allow customers to determine what they pay within defined rules.
Outcome
More customers choose to participate.
Chapter: Configuration - Profit Model - User-Defined Innovations
Problem
Different asset designs increase operating complexity.
Action
Use common equipment and asset standards across the organization.
Outcome
Operations become easier to manage.
Chapter: Configuration - Structure - Asset Standardization Innovations
Problem
Critical knowledge is scattered across the organization.
Action
Create dedicated centers for specialized capabilities.
Outcome
Expertise is applied more effectively.
Chapter: Configuration - Structure - Competency Center Innovations
Problem
Employee skills become outdated over time.
Action
Provide structured education through an internal learning program.
Outcome
Workforce capability improves.
Chapter: Configuration - Structure - Corporate University Innovations
Problem
Centralized decisions slow the organization.
Action
Allow teams closest to customers to make appropriate decisions.
Outcome
The business responds more quickly.
Chapter: Configuration - Structure - Decentralized Management Innovations
Problem
Employees focus on what incentives encourage.
Action
Align rewards with behaviors that support business goals.
Outcome
Performance improves.
Chapter: Configuration - Structure - Incentive System Innovations
Problem
Disconnected systems create delays and errors.
Action
Connect information technology across business functions.
Outcome
Information flows more smoothly.
Chapter: Configuration - Structure - IT Integration Innovations
Problem
Important experience is lost when it is not shared.
Action
Document and distribute useful knowledge across the organization.
Outcome
Teams solve problems more effectively.
Chapter: Configuration - Structure - Knowledge Management Innovations
Problem
Poor organizational structure limits execution.
Action
Design roles and responsibilities to support business strategy.
Outcome
The organization works more effectively.
Chapter: Configuration - Structure - Organizational Design Innovations
Problem
Supporting work consumes valuable internal resources.
Action
Assign noncore activities to specialized external providers.
Outcome
Internal teams focus on strategic work.
Chapter: Configuration - Structure - Outsourcing Innovations
Problem
New products lack customer recognition.
Action
Launch related offerings under an established brand.
Outcome
Customers adopt new products more quickly.
Chapter: Experience - Brand - Brand Extension Innovations
Problem
Strong brand equity is not fully utilized.
Action
Use a trusted brand to support multiple products and services.
Outcome
Marketing becomes more effective.
Chapter: Experience - Brand - Brand Leverage Innovations
Problem
Customers cannot easily judge product quality.
Action
Earn respected certifications from independent organizations.
Outcome
Customer confidence increases.
Chapter: Experience - Brand - Certification Innovations
Problem
One brand alone may not create enough customer confidence.
Action
Develop offerings with compatible brand partners.
Outcome
The combined offering becomes more attractive.
Chapter: Experience - Brand - Co-Branding Innovations
Problem
Customers cannot assess the quality of a hidden product.
Action
Promote recognized components used inside your products.
Outcome
Trust in the product increases.
Chapter: Experience - Brand - Component Branding Innovations
Problem
Dependence on outside brands limits differentiation.
Action
Develop high-quality products under your own label.
Outcome
Brand control increases.
Chapter: Experience - Brand - Private Label Innovations
Problem
Limited information reduces customer confidence.
Action
Communicate openly about products and business practices.
Outcome
Customer trust grows.
Chapter: Experience - Brand - Transparency Innovations
Problem
Customers lose trust when actions contradict stated values.
Action
Make decisions that consistently reflect your declared values.
Outcome
Brand credibility improves.
Chapter: Experience - Brand - Values Alignment Innovations
Problem
One sales channel does not fit every buying situation.
Action
Choose channels that best fit the customer context.
Outcome
Buying becomes more convenient.
Chapter: Experience - Channel - Context Specific Innovations
Problem
Customers may overlook purchases that improve results.
Action
Suggest related products during the buying process.
Outcome
Customers receive more complete solutions.
Chapter: Experience - Channel - Cross-Selling Innovations
Problem
Relying on one channel limits growth.
Action
Enter new sales and distribution channels.
Outcome
Market reach expands.
Chapter: Experience - Channel - Diversification Innovations
Problem
Customers struggle to understand product value before purchase.
Action
Create places where customers can explore and test products.
Outcome
Purchase confidence increases.
Chapter: Experience - Channel - Experience Center Innovations
Problem
Customers rarely experience the brand's full identity.
Action
Use flagship stores to demonstrate the brand at its best.
Outcome
Brand perception becomes stronger.
Chapter: Experience - Channel - Flagship Store Innovations
Problem
Intermediaries reduce customer insight.
Action
Sell directly whenever it creates greater value.
Outcome
Customer understanding improves.
Chapter: Experience - Channel - Go Direct Innovations
Problem
Direct sales cannot reach every market.
Action
Work with distributors and retailers to increase availability.
Outcome
More customers gain access.
Chapter: Experience - Channel - Indirect Distribution Innovations
Problem
Internal sales capacity has natural limits.
Action
Build a network of independent sellers.
Outcome
Sales reach expands.
Chapter: Experience - Channel - Multi-Level Marketing Innovations
Problem
Traditional channels miss potential buyers.
Action
Sell through unconventional locations or distribution methods.
Outcome
New customer groups are reached.
Chapter: Experience - Channel - Non-Traditional Channels Innovations
Problem
Waiting reduces customer satisfaction.
Action
Provide products or services as soon as customers request them.
Outcome
Customer convenience improves.
Chapter: Experience - Channel - On-Demand Innovations
Problem
Permanent locations rarely create excitement.
Action
Open temporary sales locations for limited periods.
Outcome
Customer interest increases.
Chapter: Experience - Channel - Pop-Up Preference Innovations
Problem
Customers disengage when they have little influence.
Action
Allow customers to make important choices during their experience.
Outcome
Customer engagement becomes stronger.
Chapter: Experience - Customer Engagement - Autonomy and Authority Innovations
Problem
Customers feel disconnected from the brand.
Action
Create opportunities for customers to connect with one another.
Outcome
Customer loyalty increases.
Chapter: Experience - Customer Engagement - Community and Belonging Innovations
Problem
Too many options make decisions difficult.
Action
Present a carefully selected set of relevant options.
Outcome
Customers choose more confidently.
Chapter: Experience - Customer Engagement - Curation Innovations
Problem
Manual service creates unnecessary delays.
Action
Automate repetitive customer activities where appropriate.
Outcome
Service becomes faster.
Chapter: Experience - Customer Engagement - Experience Automation Innovations
Problem
Customers struggle to gain full value from products.
Action
Provide tools and resources that help customers accomplish their goals.
Outcome
Customer success improves.
Chapter: Experience - Customer Engagement - Experience Enabling Innovations
Problem
Complex experiences discourage continued use.
Action
Simplify every important customer interaction.
Outcome
The experience becomes easier to complete.
Chapter: Experience - Customer Engagement - Experience Simplification Innovations
Problem
Limited knowledge reduces product value.
Action
Provide learning opportunities that develop customer expertise.
Outcome
Customers achieve better results.
Chapter: Experience - Customer Engagement - Mastery Innovations
Problem
Standard experiences do not fit every customer.
Action
Adapt products and interactions to individual customer needs.
Outcome
Customer satisfaction increases.
Chapter: Experience - Customer Engagement - Personalization Innovations
Problem
Customers lose motivation when their contributions go unnoticed.
Action
Recognize customers for meaningful participation and achievements.
Outcome
Customer engagement becomes stronger.
Chapter: Experience - Customer Engagement - Status and Recognition Innovations
Problem
Ordinary customer experiences are easily forgotten.
Action
Add distinctive and playful elements that express your brand personality.
Outcome
Customers remember the brand more easily.
Chapter: Experience - Customer Engagement - Whimsey and Personality Innovations
Problem
Products alone may not solve the complete customer need.
Action
Provide services that complement and strengthen the core offering.
Outcome
Customers receive greater overall value.
Chapter: Experience - Service - Added Value Innovations
Problem
Customers become uncertain during complicated purchases.
Action
Provide dedicated assistance throughout the customer journey.
Outcome
Customers make decisions with greater confidence.
Chapter: Experience - Service - Concierge Innovations
Problem
Customers hesitate when outcomes are uncertain.
Action
Offer clear guarantees that protect the customer.
Outcome
Customer trust increases.
Chapter: Experience - Service - Guarantee Innovations
Problem
Buying a product is not practical for every customer.
Action
Offer leasing or loan options instead of requiring purchase.
Outcome
More customers can use the offering.
Chapter: Experience - Service - Lease or Loan Innovations
Problem
Customers have little reason to return after a purchase.
Action
Create loyalty programs that reward repeat business.
Outcome
Customer retention increases.
Chapter: Experience - Service - Loyalty Programs Innovations
Problem
Standard service does not fit every customer.
Action
Adapt the service to each customer's situation.
Outcome
Customers feel better supported.
Chapter: Experience - Service - Personalized Service Innovations
Problem
Waiting for assistance wastes customer time.
Action
Provide simple self-service tools for routine tasks.
Outcome
Customers complete tasks more quickly.
Chapter: Experience - Service - Self-Service Innovations
Problem
Inconsistent service weakens customer relationships.
Action
Maintain high service standards across every interaction.
Outcome
Customer satisfaction increases.
Chapter: Experience - Service - Superior Service Innovations
Problem
Customers need help before and after buying.
Action
Offer supplementary services that extend the value of the main offering.
Outcome
Customers achieve better long-term results.
Chapter: Experience - Service - Supplementary Service Innovations
Problem
Disconnected interactions create inconsistent experiences.
Action
Coordinate every customer touchpoint into a single, integrated experience.
Outcome
Customers receive a more consistent experience.
Chapter: Experience - Service - Total Expierience Management Innovations
Problem
Customers hesitate without firsthand experience.
Action
Offer opportunities to test the product before purchase.
Outcome
Purchase confidence increases.
Chapter: Experience - Service - Try Before You Buy Innovations
Problem
Customers cannot always receive timely assistance.
Action
Create user communities where customers help one another.
Outcome
Support becomes more accessible.
Chapter: Experience - Service - User Communities / Support Systems Innovations
Problem
Products lose value when customer needs change.
Action
Introduce features that address important customer problems.
Outcome
The product becomes more useful.
Chapter: Offering - Product Performance - Added Functionality Innovations
Problem
Products consume more resources than necessary.
Action
Design products that use materials and energy efficiently.
Outcome
Resource consumption decreases.
Chapter: Offering - Product Performance - Conservation Innovations
Problem
Standard products cannot satisfy every customer.
Action
Offer meaningful customization options.
Outcome
Products better match customer needs.
Chapter: Offering - Product Performance - Customization Innovations
Problem
Complex products discourage regular use.
Action
Design products that are simple to learn and operate.
Outcome
Customers achieve results more easily.
Chapter: Offering - Product Performance - Ease of Use Innovations
Problem
Customers lose interest after the first experience.
Action
Include engaging functionality that rewards continued interaction.
Outcome
Product use increases.
Chapter: Offering - Product Performance - Engaging Functionality Innovations
Problem
Products can create unnecessary environmental harm.
Action
Reduce environmental impact throughout the product lifecycle.
Outcome
The offering becomes more sustainable.
Chapter: Offering - Product Performance - Environmental Sensitivity Innovations
Problem
Customers must manage too many separate tools.
Action
Integrate complementary features into a single offering.
Outcome
Customers accomplish more with one product.
Chapter: Offering - Product Performance - Feature Aggregation Innovations
Problem
Trying to solve every problem weakens product performance.
Action
Concentrate product design on one primary customer need.
Outcome
The product performs its core purpose better.
Chapter: Offering - Product Performance - Focus Innovations
Problem
Extra features make products harder to use.
Action
Eliminate functions that provide little customer value.
Outcome
The product becomes easier to understand.
Chapter: Offering - Product Performance - Performance Simplification Innovations
Problem
Unsafe products reduce customer confidence.
Action
Build protective features into the product from the beginning.
Outcome
Customers use the product with greater confidence.
Chapter: Offering - Product Performance - Safety Innovations
Problem
Strong performance alone may not attract customers.
Action
Use styling that supports both appearance and brand identity.
Outcome
The product becomes more appealing.
Chapter: Offering - Product Performance - Styling Innovations
Problem
Average products are easy to replace.
Action
Continuously improve the product until it outperforms alternatives.
Outcome
Customers perceive greater value.
Chapter: Offering - Product Performance - Superior Product Innovations
Problem
Customers need additional products to achieve complete results.
Action
Provide complementary products designed to work together.
Outcome
Customers receive a more complete solution.
Chapter: Offering - Product System - Complements Innovations
Problem
A fixed product cannot satisfy every customer need.
Action
Support extensions and plug-ins that add new capabilities.
Outcome
The product remains useful in more situations.
Chapter: Offering - Product System - Extension/Plug-ins Innovations
Problem
Separate offerings create unnecessary complexity.
Action
Integrate products and services into a unified offering.
Outcome
Customers enjoy a smoother experience.
Chapter: Offering - Product System - Integrated Offering Innovations
Problem
Unique product designs increase development effort.
Action
Create products from modular, reusable components.
Outcome
Product development becomes faster and more flexible.
Chapter: Offering - Product System - Modular Systems Innovations
Problem
Creating every new product from scratch wastes resources.
Action
Develop a common platform that supports multiple products and services.
Outcome
Future innovation scales more efficiently.
Chapter: Offering - Product System - Product / Service Platforms Innovations
Problem
Customers spend time assembling compatible products.
Action
Package related products together as a single offering.
Outcome
Customers purchase complete solutions more easily.
Chapter: Offering - Product System - Product Bundling Innovations