Innovation

Innovation is not just about having many ideas. The actual job is generating ideas that can be converted into viable, profitable offerings. That is what counts as innovation in product management.

Innovation happens across multiple dimensions — not just product features or technology. These can include business models, processes, networks, and organizational structures. Recognizing where innovation can occur helps you find opportunities others miss.

Innovation is the creation of viable new offerings

When you hear "innovation," you might think of flashy new features or breakthrough technology. But innovation is broader. It is about creating something new that customers find valuable and that your company can profitably deliver.

Talvinder often references the framework by Doblin/Keeley, which identifies ten types of innovation:

The trap is to focus only on product features or technology. Innovation in profit model or network can be far more defensible and transformative.

How to generate innovation ideas: the SCAMPER technique

One practical way to generate ideas is SCAMPER — a checklist of action prompts that guide creative thinking about your product or business model.

SCAMPER helps break mental blocks and encourages looking at your product from multiple angles.

Innovation requires deliberate strategy and execution

Having ideas is only the start. Your actual job is to turn ideas into a profitable new offering. That means:

• Value creation: Identifying new capabilities or features that customers want.
• Value capture: Designing a business model that converts value into profit.
• Execution: Organizing your team and processes to deliver the innovation reliably.

Many PMs focus on value creation alone — building the "cool" feature. But without value capture and execution, innovation fails to scale.

Profit model innovation example: Gillette and Hilti

Gillette changed how it made money by selling razors cheaply and charging more for blades. This shifted customer behavior to buying disposable blades regularly. Hilti, a power tools company, offers subscription-based rentals instead of outright sales, relieving customers from maintenance and upfront costs.

These are innovations in profit model, not product features.

Network innovation example: Target and open innovation

Target partners with external designers like Michael Graves to offer exclusive product lines. This network of partnerships creates unique value Target alone can’t build internally.

Structure innovation example: W.L. Gore and Zappos

W.L. Gore’s flat team structure empowers employees to self-organize around commitments, making the company agile and innovative. Zappos’ Holacracy removes traditional hierarchy, fostering autonomy and creativity.

Process innovation example: Toyota and Zara

Toyota’s lean manufacturing revolutionized car production, reducing waste and improving quality. Zara’s fashion supply chain cuts the time from design to store shelves to weeks, enabling fast response to trends.

Product performance innovation example: Dyson and Jaipur Foot

Dyson’s bagless vacuum took 15 years and thousands of prototypes to perfect. Jaipur Foot is a low-cost, high-quality prosthetic that transformed mobility for millions of amputees in India with limited resources.

Innovation in the Indian context

India’s market and ecosystem shape how innovation plays out:

• Resource constraints force frugality. Innovations like Jaipur Foot show how to deliver high value at low cost.
• Diversity demands adaptability. Products must serve a wide spectrum of languages, income levels, and infrastructure conditions.
• Business models matter. Many Indian startups innovate profit models to navigate price sensitivity and distribution challenges.
• Networks are critical. Partnerships, ecosystem plays, and open innovation can unlock capabilities startups cannot build alone.

Embedding innovation in product design and execution

Innovation is not a one-time act; it is a continuous capability. To build this:

• Encourage experimentation and safe failure.
• Foster diverse perspectives and cross-functional collaboration.
• Use structured ideation techniques like SCAMPER regularly.
• Align innovation efforts with business goals and customer needs.
• Measure impact not just by features shipped but by value created and captured.
• Iterate on your profit model, network, and processes as much as on product performance.

Test yourself: The innovation pitch

Where to go next

• Explore how to discover customer problems: User Research Methods
• Learn to design product strategy: Product Vision and Strategy
• Understand business model innovation: Business Model Design
• Develop skills in product execution: Agile Product Delivery