What Are the Types of Innovation

What Are the Types of Innovation?

Businesses can be more open to change and innovation with innovative thinking along with constantly renewing and developing technology. As a result, they can have the courage to invest in creativity and new ideas. Innovative thinking supports growth and development in every business. In short, we can define innovative thinking as a thinking system based on creative problem-solving to find new ideas and new ways to solve problems.

Well, if we look at the definition of innovation;

What is Innovation?

As a concept, innovation refers to both a process (renewal) and a result (change). Innovation can also be defined as finding solutions to existing problems that bother us by focusing on solving problems.

Innovation is not an invention. It is mostly about taking a product or service that exists today, adding new effective features to it, and putting it at the service of humanity again. The important thing at this stage is that the updated feature is active and unique.

5 Types of Innovation

Although there are many types of innovation, there are five types of innovation.

1- Product Innovation

Developing a new product or making changes to an existing product is defined as product innovation. An example of product innovation is the shrinking of mobile phones over time and the fact that they are equipped with touch screens. Product innovation is seen among the most researched types of innovation in terms of innovation.

Innovations in the field of product innovation include everything from the quality of the product. All these innovations revolve around products and services that can add real value to a core product. The key to product innovation is adding significant value to the product as we define it.

2- Marketing Innovation

Renewing a product or its packaging with different designs, using it with different marketing methods, or developing the existing product in a different version is called marketing innovation. Marketing innovation includes a very wide range of tasks, particularly all activities related to customer and market orientation and enabling the successful marketing of a new product or service. If we give an example of marketing innovation; It is a marketing innovation that the arms on the buses are printed in the form of wristwatches, the gold is packaged in different grams and designed and presented to the market in the form of cards.

3- Service Innovation

Service innovation is defined as the type of innovation that involves creating and introducing new services for customers. Service-related innovation centers around customer experiences and starts with service-related innovations. Innovations in this area make it easier to use, highlight overlooked functions, or fix common problems. Thus, it improves the capabilities of the product or service.

For example; It can be listed as ordering food over the Internet, bringing grocery shopping to the door, and broadcasting television on the buses.

4- Organizational Innovation

It is defined as innovation that encompasses the improvement of processes through continuous improvement and the development of new solutions. Organizational innovations affect the process and organizational structure. These can be listed as organizational process innovations or management innovations. Innovation to penetrate the company and show its effects is a process. At this point, companies may think that the organizational structures that have lasted for years can no longer adapt to business models and new business processes, are insufficient at certain points, and limit companies. Therefore, companies may want to change their organizational structures and achieve a structure that is open to innovations and adapts quickly to different applications.

At this point, the company’s departments, employees, and innovative work based on the hierarchy are also defined as organizational innovation.

5- Business Model Innovation

It is defined as a phenomenon related to how the company delivers the product or service it offers to the consumer and how it generates income from it. For example; The purpose of the Bitaksi application is to provide a service, but a new business model is also shown while providing this service. Bitaksi does not have a vehicle of its own. The aim here is to match together taxi drivers and customers. Bitaksi application generates its income by taking a commission from taxi drivers. The taxi driver will reach the closest customer instead of driving when there is no customer, and she will gain maximum profit with minimum spare time. It is a big problem for the customer to trust the taxi drivers and not be able to reach the taxi at the time of need. You can see the license plate, driver, and driver’s identity information of the taxi that comes to you through the application and you can score the driver.

With such an application, a point is reached where both parties can meet with a relationship of trust. Although it is very similar to service innovation, the main strategy here is to create a business model.