Chapter 2.3: Value Innovations

Innovation

creating new products, processes, or services that return value to the organization

Incremental innovation

enhancing or upgrading existing products, services, or processes.

Radical innovation

use a markedly new or different technology to access new customer segments and/or provide significantly greater benefits to existing customers and eventually marginalize or replace existing products or services

VR headsets

head-mounted devices enabling immersive three-dimensional experiences

Augmented reality

uses information systems to enhance a person’s perception of reality by providing relevant information about the user’s surroundings; typically, special glasses or other devices are used to augment the user’s view of the real-world environment with computer-generated content.

Open innovation

the process of integrating external stakeholders into the innovation process, can thus prove very beneficial. often involves making organizational data and knowledge accessible to the external stakeholders, so companies must carefully balance the benefits and potential drawbacks of engaging in such initiatives.

Lean startup methodology

a framework for continuous innovation focusing on the ability to flexibly experiment with different solutions or business models, and do so as quickly as possible.

Customer discovery

involves finding out whether the perceived problem actually exists and whether there would be a market for a hypothetical solution; once you have established this, the second step of customer discovery entails finding out whether your envisioned solution would actually address this problem

Minimum viable product

a product containing just the features needed to demonstrate how your solution meets the problem.

Customer validation

second phase of the lean startup methodology, the process of testing the hypothesis whether customers would actually be willing to pay for the solution

Validated learning

empirically testing assumptions or hypotheses through customer feedback to improve future iterations

Customer creation

you test the hypothesis of whether it is possible to establish a repeatable business model.

Startups

technology-based new ventures with high potential for scalability and growth

Crowdfunding

the securing of business financing from individuals in the marketplace—the “crowd”—to fund an initiative, typically some consumer-based product