The 8P Innovation & Differentiation Model

Abstract

Since Schumpeter (1934), managers have been aware that innovation is a critical factor if they wish to be both more efficient and successful in the market. It is known that managers and entrepreneurs need intuitive and models that are easy to apply in order to save time and be effective in their decisions. This paper focuses on the organisational need of a management tool that helps decision-makers with the innovation process. We are reviewing the innovation literature in order to sustain the proposal of a new model that fills that need: the 8P Innovation & Differentiation model – Product, Price, Place, Promotion, People, Partners, Processes and Purposes. This model systematizes and facilitates the work of managers and entrepreneurs who can reason more easily on new paths to differentiate their market offers, as well as innovate in either an incremental or a disruptive way. The model provides insights in all main aspects that can improve entrepreneurs’ strategical decisions about the business model.