Innovation Model

Vertical dimension

The "hourglass" model describes all vertical levels of the innovation model. It covers suppliers/partners (S&P), competition (COM) and customers (TAM). All levels comprise company's current business as well as it's adjacent and unknown markets. Usually, the COM-level is well known and smaller than the TAM- and S&P-level.

Horizontal dimension

The horizontal dimension applies the "hourglass" in each discipline of the value creation chain. Often, products and services are in the focus of innovation initiatives. However, customer focus starts with the understanding of needs, jobs-to-be-done and the driving forces in the market. Distribution is crucial for customer experience and transaction costs. Further, critical resources/assets or changes in the area of organization and processes differentiate to competitors and can be very innovative. The business model can be assessed and drafted together with the cost structure and revenue model.