Five Essential Elements of Innovation
Innovation isn’t just about creating something new—it’s about creating something transformative. To achieve true innovation, your product or service should embody these five essential elements, which together set the stage for game-changing success:
1. Novelty
Innovation must deliver a unique and effective advantage for your business. It should introduce something entirely new, setting it apart from anything else on the market.
• ↑ ORKUT by Google: Failed to capture the market because it lacked the novelty factor, even though it was responsive.
• ↓ Google Maps vs. Apple Maps: Google Maps capitalized on novelty with groundbreaking features, whereas Apple was a follower in this space.
2. Non-Obvious
True innovation often involves complexity or insight that makes it non-obvious to the market and competitors. It requires seeing beyond the obvious.
• ↑ Uber: The concept that the world’s largest transportation company would own no physical assets was groundbreaking and non-obvious to most.
• ↓ BlackBerry Storm: Although integrating a touchscreen and keyboard was novel, it was an expected response to market demand, lacking the surprise factor.
3. Surprise
A surprising element captivates users and throws competitors off guard. It’s an unexpected twist that makes your innovation memorable.
• ↑ iPod: Apple’s revival hinged on the iPod, which combined novelty, non-obviousness, and surprise to redefine music consumption.
• ↓ Tata Nano: While the world’s cheapest car was novel and non-obvious, it lacked a surprising feature to differentiate it further.
4. Disequilibrium
Effective innovation identifies and addresses a market imbalance or unmet need, creating value by solving it.
• ↑ Netflix: In addition to meeting novelty, non-obvious, and surprise elements, Netflix addressed a major disequilibrium in convenience and pricing.
• ↓ Blockbuster: While Netflix disrupted the market by delivering DVDs directly to homes, Blockbuster remained committed to physical stores, missing this market shift.
5. Disproportionate Results
Innovation should yield results that far exceed the effort invested, leading to vertical growth and significant market impact.
• ↑ Electric Bikes by Riese & Müller: By using high-quality components, the company saw disproportionate growth, satisfying all elements of innovation.
• ↓ Segway: Despite excelling in novelty, non-obviousness, and surprise, Segway overestimated the practicality of their product, missing the mark on achieving disproportionate results.
So, What Is Innovation?
Innovation is a novel and non-obvious solution that includes an element of surprise, addresses a critical disequilibrium, and leads to disproportionate results. In other words, it’s not just about new ideas—it’s about creating lasting impact and vertical growth.