Matt Reilly (Accenture’s Management Consulting Services) has written about what amounts to be an invent-innovate-scale value continuum with respect to IP. Agreeing with many that invention without innovation can be valueless, he cautions inventors and managers alike on how avoid an “innovation death spiral.”
Reilly argues companies need three types of innovation:
- Renovations. In effect, this is the now ancient P&G model of extending a product’s life cycle. Google’s constant improving its top-rated search engine is a leading example.
- Market-share innovations. Southwest Airlines’ no-frills, discount fares gained them significant market share.
- Game-changing innovations. Who could argue that Apple’s iPod changed the music industry forever?