Read Online Ten Types of Innovation: The Discipline of Building Breakthroughs By Larry Keeley,Helen Walters,Ryan Pikkel,Brian Quinn
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Ebook About Innovation principles to bring about meaningful and sustainable growth in your organization Using a list of more than 2,000 successful innovations, including Cirque du Soleil, early IBM mainframes, the Ford Model-T, and many more, the authors applied a proprietary algorithm and determined ten meaningful groupings—the Ten Types of Innovation—that provided insight into innovation. The Ten Types of Innovation explores these insights to diagnose patterns of innovation within industries, to identify innovation opportunities, and to evaluate how firms are performing against competitors. The framework has proven to be one of the most enduring and useful ways to start thinking about transformation. Details how you can use these innovation principles to bring about meaningful—and sustainable—growth within your organization Author Larry Keeley is a world renowned speaker, innovation consultant, and president and co-founder of Doblin, the innovation practice of Monitor Group; BusinessWeek named Keeley one of seven Innovation Gurus who are changing the field The Ten Types of Innovation concept has influenced thousands of executives and companies around the world since its discovery in 1998. The Ten Types of Innovation is the first book explaining how to implement it.Book Ten Types of Innovation: The Discipline of Building Breakthroughs Review :
The book has an excellent perspective about the chaotic state of innovation management such as ridiculous methods to facilitate creativity. Although the book lists ten types of innovation, the book omits a description of radical and incremental innovation, which are the most important types of innovation to understand. Both radical and incremental innovation are governed by the dominant design within a market or industry. Although the book cites a reference to Utterback’s book, Mastering the Dynamics of Innovation, that describes dominant design, the book fails to understand and apply the concept.The book doesn’t recognize that innovation is based new human capabilities used by suppliers to deliver new valuable capabilities to customers. Kodak went bankrupt as a victim of the failure to effectively create new human capabilities in response to the radical innovation in digital photography that made Kodak chemists and chemical photography obsolete. The human struggles within Kodak protected chemists but lost the battle to protect the company. Similar struggles exist today within the automotive industry being changed by the radical innovation containing the electric vehicle (EV) that makes internal combustion engines and gasoline or diesel refueling obsolete.The book doesn’t understand how innovation must function at the human level to create value based on new capabilities within businesses as suppliers or delivered to customers. Describing how innovation functions as a workflow of new human capabilities is a requirement for understanding how to create and manage any type of innovation.The book fails to recognize that human capabilities are the foundation of innovation and innovation is much more than a combination of ten abstract types of innovation including profit model, process, product system, service and channel. Capabilities enable organizations to innovate and are based on people with structured knowledge (explicit, tacit, individual and group), and people operating within processes in a complex workflow based on learning supported by services, applications, tools, platforms, components and technologies. As an example, having a capability in biology is based on knowledge that biology contains components including DNA and cells and understanding how the components operate and interact is required to explain how living things function and how their health and growth can be managed. The book fails to recognize that listing abstract types of innovation that can be conceptually combined doesn’t describe how innovation functions at the human level and is like listing many types of animals or plants and then falsely expecting the list can be combined to describe and explain how biology operates.As an example of the failure of the book to understand innovation, the book only makes ONE mention of knowledge management (page 145) as part of the type of innovation labeled as Structure. Knowledge management is a core component of innovation just as DNA and cells are core components of biology. Innovation requires a lot of mutual learning by suppliers and customers. Creating learning depends on understanding how knowledge management in a broadened scope of R&D that integrates marketing, sales and business development can guide the design of iterative experiments especially in the front end of innovation that provide mutual learning experiences for suppliers and customers that reveal latent unmet needs. The book provides no guidance on how to do improved R&D, marketing, and business development that reveals latent unmet needs by engaging with customers and doing iterative experiments.The book fails to show what the book recommends is a solution to the problem of innovation in an industry by combining the types of innovation. An example of the failure is the analysis of the pharmaceutical industry on pages 112-115 in Chapter 16, Challenge Convention, in the Section, The Importance of Industry Innovation Analysis. The book identifies the obvious lack of innovation in the industry that was suffering from the decline of the high profits from blockbuster drugs with patent protection expiring, but the book offers no real solution. The solution for pharma is radical innovation based on a new dominant design but the book has no idea how to create or manage radical innovation. Even though the book tells the story of Ford “inventing an industry” on pages 68-69, the book fails to recognize that Ford created radical innovation with a new dominant design with three parts: capability to produce a low cost affordable standard Model T in volume on an efficient production line, a vertical business model that integrated supply chains, and an industry restructured with dealers for distribution and maintenance and higher pay for workers.Four generations of innovation management as a capability to create and manage innovation have evolved since 1900. But the first three generations were only capable of creating incremental innovation and were not capable of enabling existing or new businesses to create radical innovation or to survive from the impact of radical innovation. Radical innovation transforms markets and industries such as the transformation of the automotive industry underway by EV’s that changes capabilities, business models and industry infrastructures – replacing gas stations with charging stations and eliminating dealers as Tesla has done. Amazon, Microsoft, Apple, Google and Facebook (all startups) used the new Fourth Generation of Innovation Management (4G/IM) to successfully create radical innovations that transformed markets and industries.Lean Startup which is the new best practice for entrepreneurship is a subset of 4G/IM. At the core of Lean Startup is 4G/IM knowledge management that guides the design of an iterative process and experiments that test assumptions by giving new capabilities to customers and then pivoting to create and supply the right capabilities with the right business models.The stage gate process in 2G/IM frequently fails to create successful innovation because the marketing, engineering and business assumptions at the beginning of the process about customer need and supplier capability to meet the need are wrong and can’t be changed throughout the process.Kodak failed to practice 4G/IM and went bankrupt as a victim of the failure of 3G/IM to effectively respond to the radical innovation in digital photography.Although the book lists types of innovation, the book fails to recognize that the types of innovation are NOT really components of innovation. Innovation is a combination of new capabilities used by companies to deliver new valuable capabilities to customers. The capabilities must be combined in a management framework with a central building block like cells in biology. 4G/IM describes the central building block of innovation as a capability “stack”. “Stacks” are linked together within supplier and customer workflows, within supply chains, and within distribution channels. A “stack” is a layered structure forming a capability received by people with knowledge in a workflow process. The “stack” contains services, applications, tools/products, platforms, components and technologies. People then use the “stack” to build new knowledge and processes plus build parts of a new “stack” containing services, applications, tools/products, platforms, components and technologies that is sent to other people. 4G/IM has 12 principles which providence guidance for management on investment, strategic planning, staffing, processes, targets for innovation, measurement, partnerships, leadership, and the structure of an organization.Although the book mentions platforms and platform driven innovation, the book fails to list platforms as a component within the capabilities that are the building blocks of innovation and are the output of innovation as a collection of capabilities supplied to customers.Platforms are much more than foundational components for product families or businesses supplying products and services. An example of a platform is AWS used by Amazon to create capabilities. Platforms form part of the dominant design that defines the set of architectural rules that govern the structure of markets and industries and the linked capabilities used by people within markets and industries.Industries such as automotive have relied on dominant designs containing capabilities with platforms for product families, business models with focused factories relying on lean supply chains to operate effectively, and an industry infrastructure with roads, traffic regulations, fuel supply and dealers with maintenance services. The radical innovation which is driven by EV’s, new business models, and new infrastructure changes the dominant design of the industry.What’s missing in the book is the whole story needed to understand how to create and manage radical innovation in the Innovation Age driven by dominant designs, which in 4G/IM is the combination of capabilities, business models, and industry infrastructure. Radical innovation must apply new principles of economics and finance, apply new strategies for competition (with collaboration across large groups) and practice a new Fourth Generation of Innovation Management (4G/IM) for American businesses to compete globally against countries including China and respond to wicked problems and challenges such as global warming.The state of business education on innovation by consultants and universities today is chaotic and ineffective with superficial and conflicting theories that don’t understand the unifying principles of the new Fourth Generation of Innovation Management (4G/IM). The state of business education on innovation is similar to the chaotic state of medical education before the Flexner Report in 1910. Innovation Management is a new professional discipline similar to medicine based on biology combined with clinical practice and law based on a set of common principles. Innovation Management needs to taught by consultants and at universities in new Schools of Innovation. Business Schools with limited scope can’t adequately teach innovation. A curriculum in innovation requires courses in business management, science, engineering, operations, marketing, finance and law. Innovators need broad and deep knowledge. A business career path in innovation leads to a Chief Innovation Officer that reports to a CEO.A new Fourth Generation of Innovation Management (4G/IM) is required to explain why many businesses fail to successfully build radical innovations and how new transformed businesses and industries need government support with new, broadened types of infrastructure.As mentioned, Kodak failed to use 4G/IM and witnessed the market for chemical photography get destroyed by the radical innovation of digital photography delivered by a collaborative group. The group practiced 4G/IM including Apple and Google who supplied or supported smart phones containing digital cameras and cellular communication services linked to the Internet. The group also included Facebook who supplied social networking with shared photos.Fourth Generation Innovation Management (4G/IM) is a professional discipline like biology that understands evolution including how industries, markets, services, products, business models and technologies evolve with new dominant designs (DD’s). DD’s are the controlling architecture in innovation like DNA in biology that guides the collaboration, roles and structure of capabilities supplied by large groups of companies to customers. New DD’s are required for radical innovation.4G/IM is built on a new generation of capabilities including R&D, marketing, economics and finance.As mentioned, a capability “stack” in 4G/IM has the following layered structure that is supported by people with knowledge and processes:Servicesapplicationstools/productsplatformscomponentstechnologiesCapability “stacks” are used within businesses as building blocks within workflow and are also supplied to customers as services, applications, or products containing platforms and technologies. Customers buy new capabilities including new knowledge that creates benefits in performing the new tasks needed. But with the introduction of radical innovations such as the smart phone, customers frequently never foresee that the innovation would supply new capabilities enabling them to perform new tasks. Therefore 4G/IM does iterative experiments to reveal latent needs.Radical innovation transformed the computer industry with a collaborative collection of startups (Microsoft, Intel, Dell, Cisco, Western Digital, Seagate …) glued together with a market industry standard which was a new dominant design.The latest radical innovations in the Digital Age (Amazon-retail, Google -advertising, Apple-smart phones, Facebook-social networking, …) were enabled by the Internet, a radical innovation, that was built on government funded R&D in a new type of digital platform infrastructure, which was a lot more than roads and bridges. Transforming the energy industry and other industries with radical innovation will require a new type of infrastructure that supports 4G/IM and capability “stacks”.The economy is moving beyond the Digital Age into an Innovation Age with radical innovations transforming many industries including energy, transportation, healthcare, education, finance, real estate and food/agriculture. 4G/IM should guide the innovations and the new types of infrastructure required as government investments. Revised public education is an example of government investments in infrastructure.Economics, finance, education, HR and the legal system change in 4G/IM. Valuations on the stock market rise when companies practice 4G/IM. The economy is now more driven by radical rather than incremental innovations based on education and intangible capital (people with knowledge, skills, intellectual property, and technology) than tangible capital (money and physical assets such as real estate, machinery and land). Incremental innovation encourages and supports monopolies whereas radical innovation replaces monopolies without antitrust intervention. Economics, finance, education, HR and the legal system don’t currently adequately measure or understand either radical innovation or intangible capital.The real solution to sustained growth of an economy requires business, government, consultants and universities to understand and support the practice of a new Fourth Generation of Innovation Management (4G/IM). 4G/IM was practiced beginning in the 1980’s by a few companies but has emerged since 2000 as best practice. 4G/IM supersedes the three generations that emerged since 1900 because 4G/IM enables the improved business management, economics, finance, and government regulation required for radical innovation. The three generations which are currently in common practice are incapable of effectively creating radical innovation for new transformed business, markets and industries that are solutions to problems such as global warming, poverty, income inequity and pandemics. 4G/IM enables what economist Schumpeter called “creative destruction” with radical innovation. Mergers and acquisitions that consolidate industries lead to monopolies and are a symptom of obsolete IM, economics, education, HR and finance.One of the important subset disciplines in 4G/IM is Fourth Generation R&D. The scope of 4G R&D is broadened to entrepreneurship and radical innovation management including new marketing and new business development. 4G/IM is built with 4G R&D, 4G strategy, 4G marketing, 4G HR, 4G finance/investment, 4G engineering, 4G legal, 4G operations and 4G partnering which is much more than 3G open innovation.American institutions, consultants, universities, and the public have been slow to accept and adopt new facts and innovations as truth or beneficial, and frequently reject new paradigms in science or economics or new best practices in management. The book should have listed many references to 4G/IM and 4G R&D but did not include those references.Thomas Kuhn described the irrational reluctance to adopt new facts in the management of science where change occurs slowly until revolutionary thinking clearly invalidates old theories and creates new opportunity for a paradigm shift. In another example, the Toyota Production System was developed in Japan between 1948 and 1975 but was not adopted in America as lean manufacturing until the 1990’s. Universities didn’t begin teaching an industrial engineering course in lean manufacturing until the 2000’s, more than 20 years after Toyota had proven the benefits. The content of the book is fantastic, however, the binding is junk. After only getting through a couple chapters the pages began to come apart in chunks and separating from the binding. It makes it really difficult to keep together and the more I read, the more it just falls apart. I've never seen a book do this as quickly as this one has. Maybe stick to the digital version. 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