Linear Model of Business Innovation

Business Innovation - Complete Controller

Innovation is an idea or invention translated into a product or service that creates value for customers and can be replicated at an economical cost. Moreover, the idea should be novel, so the innovator can charge a premium for a specific period until, or unless, the innovation is copied by others. Below are several innovation theories: Check out America's Best Bookkeepers

Linear Model of Innovation

Innovation follows a linear model that is based on three different stages: invention, innovation, and diffusion. The model suggests that it follows three different steps whenever an innovation occurs, either in business or science. Firstly, the innovator invents something.  Next, those things transform into innovation where the inventor can take full advantage of the product and develop it for the final step.  Lastly, during diffusion, the innovation starts to be copied by others. Once it reaches the diffusion stage, the innovation cannot provide a long-term advantage to the innovator.  This creates a linear model with a definitive beginning and end.  

Process of Innovation

The theory, known as innovation, highlights how a company can innovate its offerings and services to grow its business and compete in the market. The process of innovation is related to business strategies that make a company competitive.  However, to fully understand and implement business strategies, it is crucial to understand the process of innovation.

The innovation process consists of six different stages, including see, understand, differentiate, lead, model, and grow. Check out America's Best Bookkeepers


In the first stage, it is the responsibility of the innovator to understand business needs and innovate its products and services accordingly. In addition, it should be clear to the company which areas are the most crucial and need innovation and change.  When areas needing innovation are not obvious or not provided, innovation cannot develop, and the company might be lead in the wrong direction by misdirecting resources.


It is the most crucial stage of the innovation process because, under this stage, the company determines the customers’ needs and then compares them with the existing products and services. If the company is successful in this stage, it can easily provide better solutions to its customers, increasing customer confidence and hopefully generating revenue.


After understanding customers’ needs, differentiating them is the second most difficult stage because a company needs to provide customers the best solution after differentiating itself from rivals.  This is not easy because there is a high risk of customer rejection, and the company must innovate according to customer requirements.


In this stage, the company must innovate things in its internal systems. Internal innovation is necessary for the company because internal process innovations mean offerings and services become easier and vice versa. Internal systems must grow with the company. Check out America's Best Bookkeepers


The business model is crucial for every company because if it is not aligned with its business strategy, the company cannot compete successfully. Business model innovation is important because products and services cannot be successfully innovated if the business model and strategy are not innovated.


It is the last stage of the innovation process because, in this stage, the company can analyze whether a specific innovation provided any advantage to the company or helped the business to grow. Furthermore, if the innovation process works effectively and efficiently, it will add value to the business. Similarly, in this last stage of the innovation process, the company can see whether the business is growing or not.

Understanding and implementing innovation is vital for business growth and development.  It works in conjunction with business strategies to ensure a business meets customer needs, remains competitive, and grows in a direction that makes the company profitable and sustainable.

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