Innovation or invention?
Innovation is often mixed with invention. Invention is typically linked to product or technology development (R&D). Innovation however, includes all non-product (or technology) innovation.
What is commercial innovation?
The core of innovation is the commercial use of an invention. Commercial innovation includes all forms of innovation aimed at increasing customer value. Especially, it is about new business or market entry models, whole new service offers, better aligned and redesigned processes, improved customer experiences, transformed customer relationships, new distribution channels, extra customer tools and apps. It could also be about new visions on business potential, innovative value propositions, a different perspective on market segmentation and all other non-product innovations which provide more customer value.
The internet is one of the best examples of commercial innovation. In less than a decade, the internet went from being connected networks used by universities and the military to the very powerful commercial engine it is today. (Greenstein Shane, How the internet became commercial: innovation, privatization, and the Birth of a new network, Princeton University Press, 2015)
Increasing customer value?
Increasing customer value may be realized by either increasing the benefits as perceived by target customers or by reducing their experienced sacrifices.
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