They are the most striking innovations for the customer because they are the new products launched on the market, the new versions or the significant modifications of the services.
In this third installment on types of innovation we will talk about the most recognizable type of innovation: supply.
Innovation in supply is related to the products and services offered by the organization. They are the most striking innovations for the customer because they are the new products launched on the market, the new versions or the significant modifications of the services.
Among the innovations in the offer, Larry Keeley distinguishes two typologies:
1. Product performance.
These are innovations that are developed to create new features or functionalities in the product offered by the organization, whether they are new creations or significant updates.
Innovation in product performance provides a long-term competitive advantage for the organization.
2. Product system.
These are innovations aimed at creating complementary services and/or products for the organization’s offer.
This innovation builds an ecosystem of products and services, fostered by the interoperability, modularity or integration of various products or services that increase the value of the offer perceived by the customer.
One of the greatest exponents of this kind of innovation is Apple, which every year launches a new version of its iPhone, with new functionalities that improve the technological capabilities of the device. Along with product innovation, Apple also offers other services and add-ons related to the device, from operating system updates to add-ons such as new headphones (Airpods), speakers, smartwatches, chargers, cases, etc. This allows the customer to live a complete Apple experience, increasing the added value perceived by the customer.
There are other types of product performance innovation and its system in offerings that do not have a physical device, as is the case of Google, which not only improves its search engine, making it as clean and simple as possible, but has created a whole system of applications within its G Suite, such as Google Maps, Google docs or Gmail, offering a more complete service to its users.
