So in this module, we're looking at what are some of the basic types of innovations? And the reason why we want to look at different types, we want to have an understanding of the range of types of innovations, because there are a lot of different ways that innovations show up. And so by having an understanding of the spectrum of these innovations, you can begin to recognize what opportunities might develop from many of these. So, let's start with the obvious one. One of the obvious one, anyway is product innovation. And typically, a new innovative product is result to what we call new product development process is there are journals devoted to these engineering societies devoted to this. And product innovations can be, they can be the new core products or they can be addition to products lines or extensions of product families. They can be any of these things, but they are all about products. Usually, some tangible thing that a consumer would buy and pay for. So a process innovation is another example of innovation type and they typically improve activities, you often interrelated activities that combine to produce a value-added result for customers. Now, that may mean that the of the way and which something is done inside of our company could be the HR process for how a company runs its HR department might lead to an improve in the way in which it operates. That would be a process innovation. They're not selling that to somebody, but they are making that improvement and that innovation effective in causing a positive change. And some examples are things like Just-in-Time inventories, Total Quality Management, Lean Manufacturing, Supply Chain Management and Enterprise Resource Planning. These are big categories, but they often are ways in which process innovations show up. So here, we have a service innovation. And in a service innovation, we really have some kind of high-level of interaction with customers. For instance, like a health care customer, a banking customer, a government customer, an education customer. And so, the way in which the service is delivered and the nature of the service can be an example of an innovative approach. One example that you see part of what we're doing here in this MOOC is online education. Online education is indeed, a service innovation that's been around for a while now. But before it happened, there was no real way to convey and conduct teaching to a wide variety of people the way we can do it now. Some examples of service innovations are found in banks mobile apps and mobile service offerings that they have for their customers. And in for instance, Amazon regional warehouses for quick and efficient delivery. So, if you've ever had something delivered, obviously, you can have it delivered by truck, but you can have it delivered by some Dropbox somewhere. So those innovations really help the providing companies do things more efficiently, save them money and they are more convenient for the customers. So, a position innovation. Now, what would that be? [COUGH] In this case, a position innovation is a market-oriented innovation that involves targeting a new offering with a convincing story about its need, about its value and about its cost leadership. So what you're doing is putting an innovation, it's kind of a marketing push out there. You're conveying the value of that innovation and you're characterize to get as either something those costumer might need, something a costumer might value or something that costumer could pay less for and all three of these things would be classified as how we recall a position innovation. So, how do innovations emerge? We could say that they emerge in a couple of different ways. They can emerge incrementally. They can emerge radically or they can emerge in a disruptive way. There's been a lot of discussion about what a disruptive innovation is, but let's look at how some of these things Play out. Incremental innovations usually are improvements, they're incremental improvements. They're process improvements often. Sometimes they can be a physical improvement to a product or sometimes an incremental improvement to a service, but they do the same thing that the company does, but they do it better. And so, incremental innovations add value. Usually, it's a small value or modest value to the customer experience. Some quick examples are razor blades and areas, you'll see a couple of different examples of those and razor blades are constantly being improved. There's constant improvement and incremental innovation with the razor blade experience. [COUGH] When you see innovations as radical, radical or typically breakthrough innovations. They may be something that's not much more than an incremental. They create new trajectories, internally new trajectories of product and services. And typically, a technology break through or scientific discovery will trigger this ind of radical innovation. And so here are some examples, ways in which, I mean, very simple example in the upper left is the candle and the light bulb. Well, that's an old example, but it is an example of radical innovation. We're not using candles anymore, we're using light bulbs. And pretty soon, we're going to use other forms of incremental innovations to light bulbs and cameras. We went from film, black and white film to carved film to digital cameras. And so, those are radical innovations. And so when you see an innovation as disruptive, a disruptive innovation triggers the creation of a completely new market and that market is based on consumer perceptions that it works good enough and provides satisfactory value and it means that what is available in the marketplace is not good enough anymore. So eventually, the new innovation disrupts existing markets and displaces the incumbent product or the service. And so, that's how it becomes disruptive. And so some examples of that would be things like a Chromebook, which is a very low cost computer that really, I think is available to almost everybody. A medical device or even Groupon, which many people now use as a basis for how they can do their shopping. So, these are very disruptive ways in which shopping happens. So, other innovation vocabulary that you probably want to be aware of are things like frugal innovation. And typically, frugal innovation are those kinds of innovations that work at the bottom of the pyramid. A management innovation is something that is implemented in a company at the company-wide management level where you can implement total quality management or lean manufacturing. And user led innovation where lead users, people who are way out ahead who or doing things that companies aren't doing yet, but that the want to do. Market pull innovations where there is a market need and the company response to that market need or the technology push innovations where a technology enables a certain form of innovation. So the take away of this module is that having an ability to recognize the various types of innovation and how they are labeled and how they will increase your understanding of the innovation landscape where innovation actually fits in and the presence of innovations in everyday worlds around us, everyday marketplaces around us.