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

Innovation's Underground Economy

Your innovation process is the problem, not the solution. The more you formalize creativity, the faster it disappears into the shadows. The question isn't whether your organization has an innovation underground—it's whether you have the courage to see it, embrace it, and harness its power.

Innovation's Underground Economy

The Courage to Create Nothing

Standing still in a rushing world isn't weakness—it's strategic wisdom. True visionaries master the art of saying no when innovation becomes an end rather than a means.

The Courage to Create Nothing

The Innovation Crisis: How We're Stifling Our Children's Creative Potential—And How to Set It Free

A 12-year-old entrepreneur highlights the gap between education and innovation. What happens when we value answers over inquiry, and how might we unlock our children's natural creative abilities?

The Innovation Crisis: How We're Stifling Our Children's Creative Potential—And How to Set It Free