Transformational Innovations
The ultimate objective of any innovation is to transform business and transform lives. How do you know if your innovation is of that transformational kind? Here are my definitions that I use for the different stages/types of business:
- If you charge for undifferentiated stuff, then you are in the commodity business.
- If you charge for distinctive/differentiated tangible things, then you are in the goods business.
- If you charge for the activities you perform, then you are in the service business.
- If you charge for the time customers spend with you, then and only then are you in the experience business.
- If you charge for the benefit customers (or "guests") receive as a result of spending that time, you are in the transformation business.
I would argue that to win in the market, you need to aim your innovation efforts towards creating a transformational business.
So ...
- Which business type are you operating under?
- What innovations would you need to create to re-define your business?
Comments
Hi there,
I've published a brief (900 words) piece on Innovation & Incubation that may be of interest, at:
http://www.zerman.net/content.html#InnovationIncubation122007
Regards,
Michael Zerman
Adelaide, AUSTRALIA
Posted by: Michael Zerman | December 2, 2007 11:12 PM
You struck a chord on this post - it does provide insight into what comes after the "experience economy".
Hope you don't mind I referenced your article on my blog.
Also, I found a Harvard Business Review article that described the commodities to experience ramp in 1998. I thought that was interesting.
Posted by: Boon | December 28, 2007 05:09 AM