Innovation Portfolio

Tom Davenport on the various kinds of innovations. He categorizes innovation styles into

1. Product innovation
2. Service innovation aka new ways to deliver services
3. Process innovation like internal business processes, or the ways of delivering products and services to customers.
4. Managerial innovation like the exploration and adoption of new approaches for managing people, technology, and other strategic business resources.
5. Business model innovation

This is a good read, although I’d rather propose another kind of sorting style.

Structural, strategic or competency-oriented innovations are in my opinion better ways to structure the innovation space, partly because they draw clear distinctions. Think e.g. of 2. and 3. of above on service innovations and process innovations, clearly both are interwined, so why bother to separate them …

Business model innovation should rather be understood as a bundle of strategic, structural and competency-related innovations (where the mixture may vary …) than as a separate category.

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