For this lesson, we learnt about innovation through the Internet. Mr Choy keeps stressing this helpful diagram that summarizes the four different types of innovation: transformational, functional, experiential and process.
In case you tried to google for this diagram, you can't find it because I created this diagram myself using the paint application. Haha. It only took 5 minutes, no biggie.
Okay so I'm going to elaborate on the four different types of innovation.
1. Transformational Innovation
This innovation type occurs when all of the three criteria are met, as shown in the diagram. So this means that the innovated product aims to fulfill customers' desires with the use of technology and customers have to pay for these products.
During class, Mr Choy gives us the example of driverless cars which is also known as an autonomous car or a self-driving car. Here's a video to give you an idea how these driverless cars work and how they seek to meet one of the human needs: transport.
A driverless car has the same transportation capabilities like a traditional car. As an autonomous vehicle, it is capable of sensing its environment and navigating without human input. Such an invention would definitely benefit an extremely large group of people, especially those who have problems with mobility.
However, there is a concern on whether these people can actually afford these cars. A study by IHS Automotive predicts that driverless cars would be sold at a price between US$7000 and US$10,000 in 2025.
Yikes!
Well, I'm not well-informed about the prices of cars in general. I don't know what price is considered as relatively cheap or expensive but since the price is as much as my semester fees for four modules, I consider it quite costly!
2. Functional Innovation
This innovation type occurs when the product is driven from the development of new technology, meeting customer's needs as a result.
An apt example of this would be the useful buses apps in Singapore called SG Buses and SG BusLeh. I use the former and it is extremely helpful in telling me the arrival times of the buses that I would be boarding.
It also has information on the entire bus route of the bus service and all the available bus services in a given bus stop.
Say, after being informed that the bus 302 is going to arrive in 5 minutes, I can leave my house at the right time so that I don't have to wait unnecessarily long. And I can also brace myself for a very long wait! After downloading this app, somehow, there is this huge burden that got removed from my shoulders somehow haha. Not exaggerating.
3. Experiential Innovation
A formal definition for this innovation type is an otherwise commoditized offer in a mature market is differentiated by modifying the customer's end-to-end experience from initial encounter to ultimate disposition.
If you are confused by the formal definition, don't worry! You're not alone! I'm just as confused as you!
Simply put, a product is considered to be an experiential innovation when it aims to meets the customer's needs and helps to earn profits for businesses as well. But, it does not have the technology aspect as shown in the diagram.
An example of such product that instantly comes to my mind is KFC's new Parmesan Chicken that was introduced last month!
Being a (somewhat) loyal patron of KFC, this food item is unprecedented in the history of KFC's menu (at least in the Singapore branch). They have cleverly innovated their menu item by sprinkling the chicken with parmesan cheese and offering an equally tempting truffle-flavoured cheddar sauce in the meal.
An example of such product that instantly comes to my mind is KFC's new Parmesan Chicken that was introduced last month!
Being a (somewhat) loyal patron of KFC, this food item is unprecedented in the history of KFC's menu (at least in the Singapore branch). They have cleverly innovated their menu item by sprinkling the chicken with parmesan cheese and offering an equally tempting truffle-flavoured cheddar sauce in the meal.
4. Process Innovation
According to InnoviSCOP, process innovation refers to "the implementation of a new or significantly improved production or delivery method" and this includes significant changes done in the existing techniques, equipment and/or software.
An example that I found via research is the sequencing of human genome by Celera and Human Genome Project. Technology is used to facilitate these efforts to find cures for human diseases. Also, profits can be gained when such cures were successfully founded.
I hope now you would be more well-informed about the four innovation types after reading my post.
Till my next post, bye bye!
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