Skip to content

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 c

Phil McKinney
Phil McKinney
1 min read
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 …

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

Phil McKinney Twitter

Phil McKinney is an innovator, podcaster, author, and speaker. He is the retired CTO of HP. Phil's book, Beyond The Obvious, shares his expertise and lessons learned on innovation and creativity.

Comments


Related Posts

Members Public

Too Big to Fail? Think Again

It is dangerous to believe that an organization is immune to failure because of its size. Historical evidence proves that size and market dominance are no safeguards against failure. Success is earned by adaptability, innovation, and a relentless commitment to meeting changing demands.

Too Big to Fail? Think Again
Members Public

The Hidden Price of Tomorrow's Innovations

In the quest for a tech utopia, what shadows lurk behind innovation's glow? What are the untold costs and narratives masked in progress? We need to take a balanced perspective on technological utopianism so that we have a future that is not just bright but also truly beneficial for all.

The Hidden Price of Tomorrow's Innovations
Members Public

The Myth of Scarcity: The Endless Supply of Ideas

It's time to shift our mindset from win/lose to win/win. The unlimited potential of ideas and innovation allows us all to succeed without taking away from others. The limit to our success is the limitation of our imagination.

The Myth of Scarcity: The Endless Supply of Ideas