Case Study: 10 Keys to Small Business Innovation

Creativity expert Teresa Amabile identifies three components of creativity: (1) Expertise. One must have the technical, procedural, and conceptual knowledge to generate potential solutions to a problem. (2) Creative thinking skills. A person must possess the willingness to take risks and to see problems or situations from different perspectives (3) Motivation. One must have the internal desire to develop creative solutions. This motivation often comes from the challenge that the work itself presents. Entrepreneurs and their employees can transform their companies into engines of innovation by combining these three components of creativity with what management consultant The Doblin Group calls the 10 types of innovation.

1. Business model. How does your company make money? These are innovations in the value proposition that a company provides its target customers and in the way it delivers value to its customers.

2. Networks and alliances. Can you join forces with another company or entity for mutual benefit? A company may forge a synergistic relationship with another organization in which each companys strengths complement the other.

3. Organizational structure. How do you support and encourage your employees creative efforts? The most effective organizations use an appropriate structure and culture to align their talent to spark innovation.

4. Core process. How does your company create and add value for customers? These innovations in a companys internal processes result in superior business systems and work methods that result in benefits for customers.

5. Product or service performance. What are the most important features and functions of your companys products or services? Innovations in functions and features can give a companys product or service a significant edge over those of competitors.

6. Product system. Can you link multiple products into a system or a platform? Bundling products can add value for customers.

7. Service. How do you provide value-added service beyond your companys products for customers? Some of the most successful businesses set themselves apart from their competition by providing unparalleled customer service.

8. Channel. How do you get your products or services into customers hands? Some companies provide extra value to their customers by making their products and services available in many venues.

9. Brand. What is your companys identity in the marketplace? Successful companies use creative advertising, promotion, and marketing techniques to build a desirable brand identity with customers.

10. Customer experience. Does your company engage customers and give them reasons to come back to make future purchases? Innovative companies find ways to connect with their customers, creating a loyal base of fansumers, customers who not only purchase but act like fans who promote the company to their friends and family members.

1. Drawing on the ten types of innovation and how Boatbound and Henrybuilt as small businesses applied the various types of innovation, develop an idea for a small business that will operate based on at least five (5) of the ten types of innovation illustrated in the case.

2. Marks)