What is Architectural Innovation?

An Introduction to Architectural Innovation

Architectural innovation is also known as adjacent innovation, and it is one of the four main types of innovation. It is characterized as delivering a significant improvement on an existing product. This is often achieved by altering the underlying fundamental structures or designs of the original product. 

One of the key features of this innovation type is that not all components of the innovation have to be new or revolutionary. Instead, architectural innovation leverages existing technologies and concepts to create a superior product that combines these components in a new way, thereby impressing existing customers and also creating traction in new markets. 

Architectural innovation changes structures, while incremental innovation for example, results in small updates to existing products. Architectural innovation is often less noticeable as many of the ideas relate to non-user-facing elements.

When executed well, this type of innovation can;

• Improve the performance of existing products,
• Introduce new functions or capabilities,
• Reduce the costs for businesses and end users alike,

Architectural innovation prompts innovators to think differently about existing products and consider using them in new ways to achieve different outcomes. 

Why is Architectural Innovation Important?

Architectural innovation is beneficial for many reasons. For starters, this approach to innovation enables organizations to stay ahead, by building upon their existing products as well as existing technologies on the market.

Other reasons for implementing an architectural innovation strategy include;

• No new technology means a faster route to market, saving resources and allowing you to see rewards quickly.
• While underlying features change, the decisions are heavily data-driven, which supports customer-centric approaches.
• It significantly enhances the business standing by helping to modernize products and services to align them with the current market needs and trends

Examples of Architectural Innovation

While architectural innovation uses existing things in new ways, it can in the process also create something new. Noteworthy examples include:

1. The Apple iPhone

The Apple iPhone is a good exampled of using available hardware and software  in a new way, to enhance an existing product. This led to the creation of new markets and attracted new customers, since it provided a novel way for users to interact with existing technology.

2. Toyota Prius

Toyota introduced the Prius in 1997, as its first mass-produced hybrid vehicle. The automotive giant combined the traditional combustion engine with an electric motor to significantly improve fuel efficiency and reduce emissions.

3. Multicore Processors

Multicore processors refer to the use of multiple individual single-core processing units also known as "cores", within one Computer Processing Unit (CPU). Each core can operate and process data on its own, which improves overall performance, while simultaneously maintaining or decreasing overall power consumption. These multiple cores are all located on a single chip. This serves as a prime illustration of architectural innovation, as it offers a new way in which to utilize existing technology to rearrange the distribution and utilization of processing power in computers.

Facilitate Architectural Innovation with KICKBOX

For architectural innovation to be successful, organizations must enable innovators to take stock of all existing technologies and processes, to find ways in which these can potentially be improved. Crucially, they must also be allowed to work on their ideas without the fear of failure.

Innovation management tools like rready's flagship KICKBOX program, encourage idea generation, allowing creative freedom to unlock concepts for significant product or process innovations.