In our previous blog posts, we’ve explored examples of incremental and breakthrough innovation. Now it’s the turn of radical innovation.
Radical innovation involves harnessing new technology and a new business model simultaneously and as such, is very rare – only about 10% of innovations fall into this category.
So who’s achieved this? In this blog post, we take a look at three companies that have mastered the art of radical innovation.
1. Salesforce
Salesforce is one of the rare companies that has introduced a truly groundbreaking innovation. Its CRM system uses not just a new technology platform with cloud computing but also a fresh business model. When the company started in 1999, its approach of selling software as a service was genuinely innovative. Even now, the company keeps pushing limits – Forbes has named it one of the World’s Most Innovative Companies for 4 consecutive years.
2. Metromile
Metromile, a US car insurance company, is another great example of a radical innovation. The firm harnesses a new technology – a plug-in telematics device for your car– to offer a new business model; the ability to buy insurance on a pay-per-mile basis.
3. The Amazon Dash button
Our last example of radical innovation is from Amazon. The company grabbed attention last year with its Dash buttons, small WiFi-connected devices that let you reorder household items like toilet paper, razors, or laundry detergent with just a click. Both the technology and the business model of focusing on repeat orders are new, but we still need to see if this radical innovation will resonate with customers.
This blog post is part of series designed to equip insight professionals with the tools, frameworks and terminology to make their mark on the innovation process. Want to know more? Download our whitepaper on the subject here.