The "Ten Types of Innovation" framework, developed by Larry Keeley, Ryan Pikkel, Brian Quinn, and Helen Walters, offers a structured approach to understanding and implementing innovation. It categorises innovation into 10 distinct types, grouped into three major areas: Configuration, Offering, and Experience. This framework helps businesses and MBA students think beyond products and focus on innovation across the entire value chain.
Why This Framework Matters
This innovation model is especially beneficial for MBA students because it enables them to:
- Analyze existing innovations by deconstructing how successful companies thrive.
- Identify new innovation opportunities in different parts of a business.
- Speak strategically about innovation using a shared language.
- Develop complete innovation strategies, not just product-centric plans.
Three Core Innovation Categories
- Configuration: Focuses on the internal setup and how the business operates.
- Offering: Centers on the company’s products and services.
- Experience: Deals with customer interactions and brand perception.
The Ten Types of Innovation – Explained with Examples
🔵 Configuration Innovations (Internal Business Operations)
-
Profit Model – How the company generates revenue.
Examples:- Netflix’s subscription model
- Uber’s dynamic pricing
- Spotify’s freemium model
-
Network – How partnerships and external connections create value.
Examples:- Apple’s App Store
- Star Alliance (airline networks)
- Linux (open-source community)
-
Structure – How the business organizes talent and assets.
Examples:- Google’s “20% time” policy
- Zappos’ self-management structure
- Cross-functional agile teams
-
Process – Superior methods for internal operations.
Examples:- Toyota’s lean manufacturing
- Amazon’s warehouse automation
- Online banking and JIT inventory systems
🟠Offering Innovations (What the Company Provides)
-
Product Performance – Unique features and functionality.
Examples:- Tesla’s electric cars with self-driving
- iPhone’s multi-touch interface
- Dyson’s bagless vacuum cleaners
-
Product System – A system of connected products or services.
Examples:- Apple ecosystem (Mac, iPhone, AirPods)
- Google Nest smart devices
- Nespresso’s coffee pod system
-
Service – Support and value-added services around a product.
Examples:- Zappos’ top-tier customer service
- Geek Squad tech support
- SaaS platforms with 24/7 service
🔴 Experience Innovations (Customer-Facing Interactions)
-
Channel – How products are delivered and accessed.
Examples:- Amazon’s e-commerce model
- Warby Parker’s home try-on
- Food delivery apps like Swiggy, Zomato
-
Brand – How the company is perceived and communicates.
Examples:- Nike’s “Just Do It” branding
- Dove’s “Real Beauty” campaign
- Apple’s sleek, innovative identity
-
Customer Engagement – Unique ways to connect with customers.
Examples:
- Disney theme park experiences
- LEGO Ideas community
- Starbucks Rewards program
Comparison Table: Innovation in Action
| Type of Innovation | Key Focus | Example in SaaS (CRM) | Example in Consumer Goods (Beverage) |
|---|---|---|---|
| Profit Model | Revenue generation | Usage-based pricing | Tiered subscription boxes |
| Network | Partnerships | CRM integrations with 3rd parties | Co-branded drinks with chefs |
| Structure | Organizational design | Remote agile teams | Innovation labs for R&D |
| Process | Operational efficiency | Automated onboarding | Smart bottling process |
| Product Performance | Core product improvement | Predictive analytics in CRM | Vitamin-infused drink |
| Product System | Integrated offerings | Suite of business tools | Matching glassware or mixers |
| Service | Added support | 24/7 chat support | VIP drink concierge |
| Channel | Delivery method | Direct-to-customer portal | Smart vending machines |
| Brand | Public perception | Rebranding for SMBs | Ethical sourcing campaign |
| Customer Engagement | User experience | Community forums | Exclusive tasting events |
Key Takeaways
- Broaden Your Innovation View: Innovation is more than product development—it spans business models, customer service, branding, and more.
- Solve Business Problems Creatively: Use this framework to diagnose and solve issues in sales, growth, operations, etc.
- Gain Competitive Advantage: Companies that innovate across multiple areas are often more resilient and market-leading.
- Articulate Strategy Clearly: Speak the language of innovation fluently in boardrooms and strategy meetings.
The Ten Types of Innovation framework provides a strategic lens to view business growth, differentiation, and transformation. By applying this model, MBA students and professionals can lead innovation initiatives with clarity, structure, and impact—going beyond isolated product ideas to build enduring business value.
