The 4Ps of innovation space



the 4ps of innovation space model was developed by John Besant and Joe did they are two professors from Exeter University in the United Kingdom the 4ps model is used to clarify how comprehensive our innovation is the model focuses on four broad categories the four categories consist of axes starting with incremental innovation and ending with radical innovation incremental innovation means do what we do but better and radical innovation means do something differently in short the more you move away from the known the more you go from incremental innovation towards radical innovation the four broad categories of innovation types are the product or service what we as an organization offer the world the process the way we create and deliver the product or service that we are offering the position who we offer the product or service to and the story we tell about it the paradigm the way we think about what our organization does and who we do it for the paradigm is sometimes called the business model now we shall review each of the four categories with the examples of both incremental and radical innovation product innovation a new model of an existing car such as a new Toyota model is an incremental product innovation Toyota does it a little better a new car concept with electric cars such as a Tesla was a radical product innovation Tesla does it differently process innovation improved retailing logistics the goods reach the stores two weeks after ordering instead of four weeks this is an incremental innovation we do it a little better than before the customers are ordering the goods online and we are delivering the orders directly to the customers address the stores are bypassed in the value chain it is a radical innovation we are doing it differently position innovation Airlines segmenting service offerings for different passenger groups for example virgin upper-class be a British Airways Premium Economy this is an incremental innovation there are slight improvements in meeting passenger needs low cost airlines such as Ryanair opening up air trouble to those previously unable to afford it here they have created a new market they also disrupted an existing market some passengers switched from the expensive airlines to the cheap ones this is a radical innovation Ryanair changed the framework of the industry they radically changed the rules of the airline industry paradigm innovation this category is often the hardest to handle as it is an expression of our self understanding and understanding we would like customers to appreciate a bank sets up a 24/7 hotline as many of the bank's customers have begun to travel abroad it is incremental innovation in our business model the service is expanded we consider who we are therefore and then do it a little better Grameen Bank is lending money to poor people in developing countries it has always been a no-go market for traditional banks if you as an employee lent money to this segment of customers you were fired it is a radical innovation Grameen Bank has mentally redefined itself and rethinking the assumptions about credit and the poor have identified them as a market Grameen Bank has a totally different business model one way to use the model is to determine how big the changes are in each of the four categories our own channel flicks about is used as an example the starting point is our perception of the current situation others may see it in a completely different way as no one has exactly the same starting point product innovation mostly incremental innovation the product and services are based on existing knowledge and learning all models are developed by others we have studied the models and four years use them in our classes minor innovation is achieved through slightly different ways of presenting the models and thereby the promote for us the innovation process is incremental innovation moving towards radical innovation the way we create the product that we are offering is different from writing a book preparing a lesson or teaching a class but we are using the same skills that is our knowledge about communication nevertheless we had to develop a piece of software to simplify the process of producing a film to post on YouTube the way we deliver the product to the users is also different from our normal way but we have created elearning courses so we have tried something similar we know how to use educational tools to keep people focused on the subject and we know how difficult it is we are more in radical innovation than incremental innovation when we are looking at position innovation we are definitely connecting with different segments than we usually do when we look at the subscribers and the users of the videos they are from many different nations and we have no exact knowledge about why they are seeing our videos is it purely interest or is it an educational context we do not know what makes people come back that's a little scary until we know more we are doing it differently instead of better paradigm innovation this is for us pure radical innovation we have completely reevaluated our perception of how communication of knowledge can take place we have turned the business model upside down we offer free knowledge and learning the revenue has to come from advertising and sales of apps the business concept is to get people to use the free videos in the channel it is very different from a book here people only get access once they have bought the book quality cannot be judged before payment they can hear this is a totally different way of doing things we love it this concept gives us an instant response about the quality of our work we use the model to get an overview of our position based on the model we discuss our next focus area where do we lack knowledge or competencies we are completely aware that others will place themselves differently in the model but this is about us and our organization when you use the model it is about you and your organization now we shall review a criticism of the model you an interesting question arises when one tries to relate the how new innovation research with the new to whom question is it new if it is new to the company but not generally within the industry as such is it new if it is used in another industry but not in the one that we are part of or should it be completely new to all like the Internet and online shopping were in the mid-90s the model does not provide a precise answer to the new to whom question you or the group you are part of you have to define that yourself is it incremental innovation or radical innovation there is a blurring of the transition between the two extremes it can be difficult to determine if it is the one or the other of the four categories we are talking about they can overlap each other there is no correct solution to the criticism mentioned above but the good thing about the model is that it continually forces you to discuss where your innovation takes place and how much you innovate you will be in the process of using the model to get a clear understanding of where your innovation focus has to be placed

7 Comments

  1. Naima said:

    Subscribe my channal

    May 22, 2019
    Reply
  2. sam r said:

    Well done. I was able to recall information after only one watch.

    May 22, 2019
    Reply
  3. Madhavan Karthik said:

    Types and Categories are different

    May 22, 2019
    Reply
  4. LussyBogalino I believe in one God only said:

    Distinction

    May 22, 2019
    Reply
  5. Anika Abel said:

    Excellent tutorial ⚘ clear and understandable #Guyana

    May 22, 2019
    Reply
  6. Charlotte Burrett said:

    really helped with my innovation assignment thank you!

    May 22, 2019
    Reply
  7. Imran Butt said:

    Very excellent explanation about the 4 P's of innovation.. I'm your student from now on…

    May 22, 2019
    Reply

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