F O R ET I

A survey of ideas, trends, and practices on the business horizon

tool
Technology-driven

Visualizing Personal Computers multimedia enhancements

Intel 486, Windows 3.0,
Adobe Postscript

Innovation
A new mapping technique
reveals patterns and
suggests strategies. Emerging
standards,
FreePC, Compaq leasing
speciaiization
Gateway Your:)Ware
When the topic of business innovation PowerPC
(IBM,
comes up, most people immediately Motorola,
Apple), zero-
think of product development. Consul- inventory
tants at the Chicago-based Doblin Group assembly

take a broader view. They argue that in- \

novation occurs in ten categories, rang-
ing from business models and processes 1988

to channel strategies and brands. They've

developed a way to map an industry's in- 1990

novativeness across these categories, re- customer experience

1992 brand
vealing shifts in both intensity and focus. channel
service
Consider the innovation maps of two 1994 product systems
very different industries: airlines and prodi
duct performance
core processes
personal computers. The topography of 1996 enabling processes
networking
the airline map is relativelyflat,revealing usiness modeis
1998
a paucity of innovation. And the innova-
tion that does take place is concentrated Streamlined processes
Airlines and safety procedures
on processes and services. In the PC map, defibrillators in airplanes
and airports, streamlined
by contrast, the dizzying height of the boarding procedures
More low-cost airlines
peaks suggests a robust level of innova- ValuJet, Kiwi
tion. But here, too, the innovations tend Amenities for premium
Dassenaers
to be fairly concentrated; most are focused Outsourcing of noncore Virgin Clubhouse, BA First
processes
on strengthening product performance. Gate Gourmet buys SAS
Service Partner, Learjet Revenue-generating
(To see more maps, visit www.doblin. purchases AMR Combs innovation
com/hbr.) facilities United Connection and
AAdvantage Web sites,
Visualizing innovation in this way can in-flight gambling
help managers spot patterns and craft
\ \ Global alliances and
strategies, according to Doblin Group's \ consolidation
president, Larry Keeley. High peaks in- 1988 \ shared frequent-flier
programs and lounge
dicate a need for intense innovation access
activity-and big investments - just to 1990
\ k
keep pace. Valleys suggest opportunities customer experience
1992 brand
to use innovation to power a breakaway 'channel
service
move. And by mapping its own innova- ' product systems
1994
tiveness, a company can quickly spot Global alliances duct performance
produ'
Star Alliance, core processes
areas of strength and weakness. Oneworld
1996 enabling processes
networking
Nicholas G. Carr ' business models
Reprint Fg95Oi 1998

16 HARVARD BUSINESS REVIEW September-October 1999