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The 10 Types of Innovation framework

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Nov 24, 2020 11:25:35 AM
The 10 Types of Innovation framework

There is a saying that we are all equal in the eyes of God; but not all business models are. The 10 Types of Innovation framework is an effort by Deloitte. This framework helps us understand that winning business models are grounded in the mix of different business patterns. The foregoing motivates us to understand that a good value proposition is not only based on creating products or services, since as such they are not a source of disruption, otherwise business models. The 10 types of innovation are at the business model level and require the will to experiment with them.



The model is based on the fact that the closer you are to the center, the easier it is for your competence to copy you. On the other hand, the further you move away from the center and innovate in these dimensions, the greater the shielding against imitation. To be able to experiment in each dimension, learn about the different patterns of the business model.

Some examples per block are:

Profit model:

  • Freemium: Offer free services while charging for the premium solution.
  • Subscription: Create predictable revenue streams by charging your customers on a recurring basis for access to the product or service.


  • Competition: An effort with a company that would normally be your competitor to achieve a common goal.
  • Alliance: Share risks and income with an ally to jointly improve each other's competitive advantage.


  • Standardization of assets. Reduce operating costs and increase connectivity and modularity by standardizing your assets.
  • Assign a third-party responsibility for developing and maintaining an operation.


  • Standardization of processes. Create and produce more using less materials, energy or time.
  • Strategic design. Use a meaningful approach that is consistently manifested across offers, brands, and experiences.

Product performance:

  • Added functionality: Add new functionality to an existing offer.
  • Focus: Design a product or service for a particular audience.

Product systems:

  • Accessories: Sell additional or peripheral products or services.
  • Grouping of products: List multiple products as a single bundle offer.


  • Added Value: Include an additional service as part of the base price.
  • Loyalty programs: Provide benedictions and / or discounts to frequent customers.


  • Flagship store: Create a flagship store to display the products and their attributes.
  • On demand: Deliver products in real time whenever and wherever the customer wants.


  • White brand: Sell products manufactured by others packaged under your brand.
  • Brand extension: Offer new products or services under your brand umbrella.

Engagement with the client:

  • Mastery: Help clients gain great skills or in-depth knowledge of some activity or topic.
  • Autonomy and authority: Empower your customers to form their own experience.

The framework of the 10 types of innovation should be a wake-up call that true innovation and disruption happens beyond product and / or service innovation. And that business model innovation is an iterative process where models from other industries are adjusted and how it fits yours. This framework alone is difficult to explain so I invite you to use it as a complement to the Canvas Business Model.



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