The Twenty-Twenty Innovation Method
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The 20x20 Innovation method is based on a matrix of Innovation Entities, such as markets, on one hand, and, Modifiers, such as combining, on the other hand.
Innovation Entities are categories that can be disrupted, changed, reversed, basically modified to create something new. An innovation. Some examples, and I will list all twenty of them, are industries, markets, locations, and so on. Whereas modifiers would take these categories and “mold” them into something new. For example, combining (=modifier) industries (=category).
The credibility of the Twenty-Twenty Innovation Method
Before I continue, I want to explain how I came up with and produced this framework as it’s based on academic textbooks, research, education, certifications, and real-life cases.
Education and Certifications
I studied Commercial Sciences at the University of Ghent as my undergraduate degree, where psychology and sociology were key parts of the program, and went on to obtain my graduate degree in Innovation and Entrepreneurship at Antwerp Management School. Later, after more than a decade, I received my Executive MBA from the University of Cambridge. Every year, there were courses about innovation, such as design thinking, as well as related courses, such as consumer behavior. All of these influenced my way to think of innovation from a different perspective.
Other than my academic background, I received two certifications from IDEO in Design Thinking, as well Hyper Island, and a Design and Research certification from NN/g.
Textbooks and Research
I lost count of the number of books that I’ve read about innovation strategy, but I will recommend five books that I found to be the most insightful:
- Ten Types of Innovation: The Discipline of Building Breakthroughs
- Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers
- This is Service Design Thinking: Basics, Tools, Cases
- Gamestorming: A Playbook for Innovators, Rulebreakers, and Changemakers
- Service Design: From Insight to Implementation
Also, note that most of these are part of a series of books that are worth reading as well. Furthermore, there are many books on innovation, and I highly recommend reading HBR’s 10 Must Reads on Innovation as a starting point.
There are plenty of strategy and marketing books that I could recommend as well, however, conscious of not stretching the framework’s scope too much, we will be sticking to innovation techniques and lessons from entrepreneurship. Furthermore, there are a plethora of journals as well that often come to interesting conclusions.
Real Cases and Inspiring Websites
I highly recommend reading the following websites. These websites either explain conclusions from scientific journals, as well showcase innovative real-life cases:
- Coglode.com
- Springwise.com
- Trendwatching.com
- GWI.com
- Trends.co
The big three and the big four consulting firms tend to write about the latest trends as well and are also worth checking.
These Are The Primary Fundaments of The Twenty-Twenty Innovation Method
How To Use the Twenty-Twenty Innovation Method
The idea is simple. You come up with new ideas starting from a problem or opportunity. These fall into one of the twenty innovation entities that we will discuss.
By modifying these categories, you come up with new ideas. This is basically turning categories upside down, breaking them up, combining them, molding them, stretching them, etc.
Or simply: Entity x Modifyer = Innovation Outcome
Also, a lot of categories and modifiers will overlap. We want to cover all possible scenarios, therefore, there will be plenty of similar techniques, which we consider as a positive part of the framework.
The Twenty Innovation Entities
Industry
The first one I always start off with is industry. It’s a broad category and, although it’s always evolving, and changing, it’s one the hardest in innovation to discuss.
You can follow a course about this category on Udemy: https://www.udemy.com/course/draft/5334674/?referralCode=93166A2986D256F00806
Future courses will be added btw.
One example is slicing an industry. In other words, starting with a niche, and expanding into different parts of the industry later on. Think of movie production companies that start off with a specific genre to gain industry equity and later expand into other genres.
Market
A lot can be done with Markets and, more specifically, segments. We can reverse a segment based on characteristics of that market, e.g. wealth, and target the upper class (if you haven’t already).
Berg water is fairly expensive since they source it from an ice-aged environment. Most of it is branding, but what they’re actually doing is selling expensive water to a wealthy segment.
Companies
Depending on the size and structure of a company, there can be room for innovation. When looking at the modifier stretching, then a company would take on certain features and products from other companies, to expand their portfolio or experience.
This can happen vertically, where they would take over a company in the supply chain, for example, a delivery company. Or horizontally, where a business would take over a similar company, in order to increase the revenue streams.
Promotion
Promotion and advertising are rarely seen as part of innovation. However, the promotion has an effect on the market, and how a product or service or experience is being positioned.
A famous example is Audi launching a new car that could only be purchased by invitation. A smart way to show exclusivity and target their market segment is through auditing.
Locations
Location refers to where you can view and potentially buy a product. Similar to delivery, except this is purely about the “where”. Delivery focuses more on the “how”.
Secret bars use the reverse modifier as they want people to discover the place and only allow customers when they say the right password.
Channels
Refers to channels that would bring awareness, interest, sales, and so on. There are plenty of ways to find new and innovative channels.
Think about breaking a world record to raise awareness for certain health conditions, something that professional surfer Blake Johnston did. Creating a new channel is adding in terms of modification.
It should be noted that promotions and channels are similar, but not the same. A channel is a way of communicating a message and more. Promotions use channels and each channel, such as TV, has vehicles, which are subchannels, for example, a TV series on HBO.
Modalities
Interactions, voice, visuals, … . These are modalities. Combining modalities is referred to as multimodal design.
Using voice-enabled billboards in supermarkets in China is a new way of combining voice user interfaces with customer engagement.
Format
Offerings come in the form of a specific format. A movie is a motion picture that lasts around two hours, whereas series tend to last around 30 minutes per episode.
Nowadays, many series, for example, Animal Kingdom, Breaking Bad, Narcos, and many others stretch their episodes to an hour. They’re coming close to a series of short movies.
System
Think about the business model, the suppliers, the partners, the technology, the supply chain, and everything needed to produce a product.
Systems can be optimized by re-organizing the business model and looking at what parts of the business model can be replaced. This is the case of Ryan Air, where they focused on smaller airports, rather than international airports. A replacement.
Partners
Businesses, small or big, work and do need partners. It’s part of the supply chain.
Startups getting an investment from a credible VC will give them the credibility they need to expand. Supermarkets partner with NGOs to show that they care about the environment. The modifier they use is association.
Engagement
Put the customer at the center, collect feedback, and produce loyalty programs. Make the user involved in your service.
Threadless lets users create artwork that the company uses on accessories. They let the user involve in their production and sales process.
Delivery
How a product, service, or offering gets delivered to the client can make an enormous difference. This can be packaging, door-to-door delivery, assembly, and so on.
Apple spends a lot of effort on the packaging of a product and makes it easy to unpack and install the device. When buying an Apple device they augment the packaging and simplify the unpackaging.
Technology
Looking at and studying new technologies often sparks new ideas. However, new technologies are often being implemented into new products, whereas older technologies still have lots of value to offer.
An old PC tower was repurposed by its owner who turned it into a coffee machine.
Offering
Product or service, both are the core of innovative thinking. While we discuss 20 categories, most people will try to find a gap in the market by thinking about a new product or service.
Loo La La provided luxury portable toilets, the opposite of what we are used to, the reversed components and differentiated themselves
Marketing
Marketing and positioning are key when innovating. Agencies rely on their positioning in the market, their branding, their positioning, and USPs. They have a lot of direct competitors, and since they offer similar services, their branding and having USPs sets them apart.
With Envoi Studios, there is a strong focus on sonic branding, in addition to traditional branding. Which is the differentiator.
Experience
Offering a pleasant experience to the customer can make a big difference. Instead of dry service, customer service or the offering can go the extra mile and offer an experience that awes these customers.
Tomorrowland offers branded flights to the festivals, luxurious tents, and pretty much everything you would want from a festival. They use a reverse and differentiating modifier.
Price
Price is generally not considered an innovation entity. However, different price models have proven this to be incorrect. From paying a single price to subscription models, freemium models, co-earning, and many more.
By providing photos to iStock, the user earns a part of the profit, using involvement.
Cost
Similarly, cost models have gone through many innovations. From single payments to installments to removing components, etc.
Supermarkets simplified the cost by using stock music.
Community
Customer engagement includes loyalty and advocacy. Making customers fond of your brand to the point they will advertise for you.
Auditing customers in order that you form a segment of customers will make them feel part of your brand. Toptal requires experts to go through an application process, and successful candidates feel part of a community that they worked hard for. Both user involvement and association are used as modifiers.
Funnel
Going from awareness to disposal is a very broad innovation entity.
Apple gives discounts when returning older models to reuse the components, give them away, or refurbish them. Which is an example of repurposing.
Twenty Modifiers
Shifting
Entities evolve (vertical shift), move completely (full horizontal shift), and move partially (partial horizontal shift) into a different category.
Replacing
Removing an element and replacing it with another element to create a better experience.
Outcompeting
Incrementally competing.
Disrupting
Completely going in a different viable direction that changes the industry.
Reversing
Doing the opposite of what a market, company, industry, etc. is used to.
Combining
Combining two categories.
Slicing
Taking on a niche market as a starting point.
Differentiating
Looking a the competitor’s components and taking a different approach wherever possible.
Repurposing
Using a device or technology or category and using it for something else.
Simplifying
Making an entity easier to use.
Contracting
Reducing components.
Stretching
Overtaking elements of other categories.
Grinding
Pushing through against all odds.
Adding
Providing an innovation entity with new elements.
Fragmenting
Breaking up a category to find underserved parts.
Associating
Connecting with other categories to increase value.
Involving
Involving users, companies, networks, and so on to create a superior offering.
Augmenting
Creating a better offering by producing a better experience.
Auditing
Access controlling.
Removing
Removing components that don’t add value or reduce cost.
Online Course and Book
A full online course will be launched this year as well as a textbook explaining in much more detail how to use the Twenty-Twenty Innovation Method.
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