> ## Content Index
> Fetch the complete content index at: https://www.philmckinney.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# Transformational Innovations
- URL: https://www.philmckinney.com/transformational-innovations/
- Published: 2007-11-30T02:51:02.000Z
- Updated: 2016-06-11T04:27:20.000Z
- Description: 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 c
- Author: Phil McKinney
- Tags: Blog, Innovation, Leadership, transformational. innovation portfolio, #wp, #wp-post, #philmckinneycom, #Import 2023-05-01 05:17

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 …

1. Which business type are you operating under?
2. What innovations would you need to create to re-define your business?

Technorati Tags: [creativity](http://technorati.com/tags/creativity?ref=philmckinney.com),[innovation](http://technorati.com/tags/innovation?ref=philmckinney.com),[killer innovation](http://technorati.com/tags/killer%20innovation?ref=philmckinney.com),[phil mckinney](http://technorati.com/tags/phil%20mckinney?ref=philmckinney.com),[transformation](http://technorati.com/tags/transformation?ref=philmckinney.com),[business model](http://technorati.com/tags/business%20model?ref=philmckinney.com),[killer innovations](http://technorati.com/tags/killer%20innovations?ref=philmckinney.com)