Within innovation, two types are often referred to. Incremental innovation refers to small changes in different components within the business. Radical innovation, on the other hand, is the invention or innovation of unseen products or services to the market. Be aware that innovation does not always mean the development of brand-new ideas but can be small changes to existing ideas or concepts which already exist within our communities. Don’t feel pressure to invent or develop something outside of the box – instead, consider developing an idea which fills gaps in service provision.

Ideas don't have to be about reinventing the wheel. Idea generation can be about identifying gaps in service provisions, designing products differently, or developing a different way to develop services. 

The 4 Ps of innovation is a useful diagram designed in 2005 by Tidd and Bessant. They wanted to show that innovation or the generation of new ideas can derive from different angles. This can be a useful reference to consider the development of your idea from different perspectives and will allow you to think more holistically about the current services which exist within society and how you can develop an idea to improve current offerings. The 4 Ps will provide you with an overview of different forms of innovation but will also allow you to consider different components of your social idea.

Paradigm: How do we frame what we do?

You can use innovation to challenge current models of business. Paradigm innovation refers to changes in the underlying mental model via a shift in the business model. Bausch and Lomb, for example, moved from ‘eye wear’ to ‘eye care’ as their business model, transitioning away from glasses, sunglasses and contact lenses, all of which were becoming commodity businesses.  Instead, they moved into newer hi-tech fields like laser surgery equipment and research in artificial eyesight. One example of paradigm innovation within a social enterprise context could be designing a digital environmentally friendly newspaper instead of a print version.

Product: What do you offer?

Production innovation refers to either the evolution and development of an existing idea or concept or bringing of a brand-new service or product to the market. This can be well illustrated by the development of how we play music — from records to tapes, to CDs, to streaming. Social product innovation may include solar panels, which are new to the market and have a direct positive environmental impact.

Process: How do you create that offering?

Process doesn’t only mean the process of your product or service — it incorporates the different steps in delivering a service or generating a product. For-profit companies may look to reduce costs in the supply chain or make the stream the production of a product. Social enterprises are more likely to assess the social impact behind the process of a product or a service, such as social firms that employ marginalised adults in making products or delivering services.

Position: Where do we target the offering?

Position refers to your target audience. Who are the customers of your products or services? Over recent years we’ve seen this within the banking sector. After the banking crisis, banks have pivoted from positioning themselves as businesses seeking wealthy customers to personalised adverts in efforts to try and regain confidence and credibility. We can also see the positionality directly between commercial and socially focused products. Fair Trade and Tesco value tea bags are the same product but with different audiences. Tesco value tea bags seek customers who base their buying decisions on price, whereas Fair Trade tea bags position themselves towards ethical buyers who consider the ethics behind the production.