While innovation is often referred to as breakthrough or disruptive some rightly point out that most innovation is actually incremental. However a more important consideration when discussing innovation is to consider the vectors of innovation. Beyond products which are usually the default consideration for innovation, one should also consider: processes, experiences, features, customers, offering and models.
Processes
Sell the same at higher margins
Improve efficiencies in the way you make and distribute your products.
This can include hybrid sales process as opposed to pure in real life, web deliveries, robots,... but also includes focusing on selling locally to reduce distribution costs.
Experiences
Sell more of the same to the same customers
Create a network effect within your offering.
Increase attractivity of your products the more products a customer buys from you. This could be because of the relationship developping or because products work great together.
Features
Sell enhanced stuff to the same customers.
Active listening to customers helps improve products from one generation to another.
New Customers
Sell more of the same stuff to new similar customers
Navigate from one successful market to adjacent markets where customers have similar needs
Markets
Sell more of the same stuff to new different customers
Navigate from one successful market to new markets where customers value existing products but to satisfy new needs.
Products
Make new stuff to sell:
Develop a new product - not just enhancements. This could be a new product to address a known market/customers problems or a new technology to replace existing one.
Models
Sell stuff in a new way:
Reimagine how to go to market by creating new revenue streams, channels, and ways of creating value.
This can be as simple as changing the ratio between subscription vs product sales or news services around a product or new products around services.
Further readin
https://innovationmanagement.se/2014/01/09/bold-innovation-in-mature-markets-the-five-vectors/ https://hbr.org/2018/06/the-6-ways-to-grow-a-company