Seven Lenses of Innovation

There are a lot of ways to innovate and coming up with the latest 3D computer mouse does not have to be the only way to achieve competitive advantage through innovation.

Some will have you think that innovation is something that just "happens" or is a rare thing like getting struck by lightning. If you want to create a culture of innovation in which innovation is a regular and expected part of doing business, then you will want to think about what kind of process will create continual innovation and what spheres in your organization are most ripe for innovation.

One way to systematically think innovatively is to apply "lenses" of innovation to your organization. Lenses are ways of looking at something in order to find opportunity. I like the lens metaphor because innovation rarely occurs in just one area of an organization. You may find that your innovation encompasses two or more of the lenses listed below by the time you have successfully implemented it.

Think of each of these seven lenses of innovation as a "question" that you ask yourself about how your organization operates. Do the homework and study internal and external trends in a rigorous way in order to determine if these lenses show you strengths or weaknesses, opportunities or threats for your organization.

Brand Innovative ways of creating an experience and message around your product or service. The brand encompasses everything else the organization does. Starbucks created a new experience around coffee that became its brand.

Process Innovative ways of doing things to increase competitive advantage. Provide faster, stronger, cheaper goods and services by applying process changes. Ford Motors' invention of the assembly line forever changed the manufacturing process.

Supply Chain Innovate in how products are sourced and produced. Dell innovated in the supply chain by creating a "mass customization" model that allowed customers to order a custom computer that was rapidly manufactured and delivered.

Distribution Chain Innovation in how products are sold. Redbox innovated in video DVD delivery by creating automated vending machines with a low cost $1.00 per day model vs. using high cost, outdated stores.

Product: Innovation in product or services, hybridizing or finding new ways to use existing products, incremental or total innovation of product or features within products. Apple reinvented the cell phone with its iPhone product.

Market Innovation in finding new markets for new or existing products or services. Demographic shifts create shifts in demand due to new economic conditions (think consumerism in China), age (think retirement communities in the U.S.), environmental issues (think water conservation in Africa). GE used a combination of product and market innovation to create a low cost electrocardiogram (ECG) machines to open new markets for healthcare product in India.

Business Model Innovation in one or more Types such that the entire business model is new. Southwest Airlines simplified their process and reduced prices to gain competitive advantage with a new and unique business model