Ten Different Types of Innovation (cont.) 6

B. Offering (focus on an enterprise's product(s) and service(s) - 2nd of 2 types)

6. Product System (how to create complementary products and services, ie how they are connected or bundled together, ie

"...this is fostered through inter-operability, modularity, integration, and other ways of creating valuable connection between distinct and disparate offerings...... innovations help you build ecosystems to captivate and delight customers and defend against competition..."

Larry Keeley et al, 2013

Using the following tactics:

- product bundling (eg, building technology platforms to encourage development of other products and services like app stores, develop kits, APIs, etc)

- extension/plug-ins to existing products (allow addition from internal third-party resources that add functionality)

- product and service combinations or bundling (put together several products or services for sale as one combined offering)

- complementary offerings (sell additional related or peripheral products or services to a customer)

- integrated offering (combine otherwise discrete components into a complete experience)

- modular systems (produce a set of individual components that can be used independently and gain full utility when combined)

- product/service platform (develop systems that connect with other partners' products and services to create a holistic offering), etc

NB The above tactics can be used individually or in combination.

Indicators of success are when the organisation's products

- connect with one another in unique ways

- are created by other players and interface with the organisation's offerings (including depending on them to function)

- are distinct

- can be integrated or purchase as packages

Some examples include

- Toyota (Scion is a sub-brand of Toyota that allows buyers to personalise the vehicles, ie

"...Customers pick one of the five scion cars as a base and then choose from a suite of add-ons and accessories, including offerings not only from Toyota, but also from accessory makers such as Alpine Audio. A separate website is dedicated to aftermarket parts such as neon lights, superchargers, carbon filter, and hundreds of other accessories - so that customers can continue to categorise their rides..."

Larry Keeley et al, 2013

Scion is more than a vehicle; it is a lifestyle)

- Microsoft (initially products that went into MS office were offered as individual products. Now they are bundled together provide an integrated system that is used worldwide)

- Mozilla (a Web browser built on an open-source platform - Firefox - that allows independent developers to make hundreds of discrete plug-ins. In 2012 around 500 million people used Firefox)

- Elfa (offers a smart storage solution that is based on 3 central components (a drawer system, shelving system and sliding doors) that has unlimited potential for customisation)


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