Clayton Christensen – Innovation Day 5
Ten Types of Innovation – Category 4
Innovation type 8: Channel
Description of Type: How you get your offerings to market
How do you innovate in this type: Successful channel innovations involve identifying the ideal channel mix (retailers of all sorts, wholesalers and warehouses, distributors, call centers, catalogs, the internet, home delivery, etc.) to permit your customers to buy what they want, when they want it and how they want it.
Business example: Legal problems aside, Martha Stewart has developed such a deep understanding of her customers that she knows just where to be (stores, TV shows, magazines, online, etc.) to drive huge sales volumes from a relatively small set of “home living” educational and product offerings.
Innovation type 9: Brand
Description of Type: How you communicate your offerings
How do you innovate in this type: Innovation typically occurs through carefully crafted strategies that are implemented through integrated advertising, identity, packaging, communications, PR and employee and business partner conduct.
Business Example: Virgin has built a global empire primarily on the strength of its brand. It is able to use the strength of its brand to enter entirely new markets and industries – from music to entertainment to travel to retail to financial services.
Innovation type 10: Customer Experience
Description of Type: How your customers feel when they interact with your company and its offerings
How do you innovate in this type: Understanding your customers so well that you are able to provide them with experiences that delight and enrich their lives, often by addressing unmet needs and deep-seated aspirations.
Business Example: Harley Davidson has created a worldwide community of millions of customers, many of whom would describe “being a Harley Davidson owner” as a part of how they fundamentally see, think and feel about themselves.