At least for types of innovation projects can be distinguised. Initial focus on just one type helps to select a joint way forward. Successful innovations begin with a single dimension and become holistic in the course of progress.
Technology-Innovation
The continuously variable automatic transition, organic light emitting diodes OLED and fast loading batteries. Innovative functonalities or characteristics which are sometimes applicable across several products and usually do not constitute an autonomous product for the end user. Technology innovation is closely linked with technical challenges and complex problem solving. Research and development departments tend to have according responsiblities.
Product-Innovation
The telescopic umbrella, the first smartphone and the first automobile. A fundamentally new product or the next generation of a product already available on the market. Product innovations are strategic projects with initial focus not on technical problems but on thinking ahead to make a major step forward. Product innovation is typically in responsibility of the product or portfolio managers.
Service- & Process-Innovation
Self-service checkouts, payment via smartphone or automatised production steps. Novel Services and operational procedures inside and outside the company. Service innovation creates advancement where several involved parties are in close contact, collaborate or provide services. Responsibility for work in-house as well as for work close to the customer usually lies with cross-departmental process owners.
Business-Model-Innovation
Toy rental subscription, ad-financed music streaming, passenger transport by private citizen. A structure of value creation and cash flow that has not been used by the company before. Business model innovation considers about ten main factors including customer segments, company ressources, revenue streams and value proposition. Product, technology and service innovations can be part of this comprehensive consideration. Responsiblity for business models is often organised in business segments and is up to the head of the business segment.
