Business Briefing: Visualizing Innovation

Keywords: Innovation, Strategy, Data Visualization, Competitive Analysis, Business Models
Source: Harvard Business Review
Link: Read the full article on HBR.org
Author: Nicholas G. Carr
Published: September 1999
Est. Read Time (Original): ~10 minutes

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The Core Idea

Nicholas G. Carr presents a visual mapping technique from the Doblin Group that challenges the narrow, product-centric view of innovation. The framework argues that innovation occurs across ten distinct categories, ranging from business models and processes to channels and brand. By mapping an industry's innovation activity across these categories, leaders can create a "topography" that reveals where competition is intense ("peaks") and where there are untapped opportunities for a breakaway move ("valleys").

Why It Matters for Business Today

This visual approach provides a powerful and accessible strategic tool for identifying competitive threats and opportunities that are often overlooked.

• Broadens the Field of Play for Innovation: The framework forces leaders to think beyond R&D. A company can create a powerful competitive advantage by innovating in its business model (like Dell's direct model), its channel (like Gateway's stores), or its brand (like Apple's iMac), even if its core product is not dramatically different.

• A Visual Guide to Competitive Strategy: The innovation map is a simple way to visualize an industry's competitive dynamics. "Peaks" show where everyone is fighting—requiring huge investments just to keep pace. "Valleys" represent uncontested spaces where a focused innovation effort can create a unique and powerful market position.

• An Inward-Looking Diagnostic Tool: The mapping technique is not just for analyzing competitors. A company can map its own innovation activities to get a clear, honest picture of its strengths and weaknesses, helping to guide future investments and strategic focus.

The Strategic Question for Leaders

This framework shows that innovation is much more than just product development.

How does your organization systematically scan for, and invest in, innovation opportunities in the often-overlooked "valleys" of your industry, such as your business model, core processes, or customer experience?

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