Selected Terms and Concepts for Innovation – Similarities and Differences

A schematic overview with explanations and examples illustrating the differences between several similar and distinct concepts. Each item includes: definition, typical activity/role, and a concrete example.This provides a framework for distinguishing the concepts—many of them overlap, but each has its own “focus.”
For each role/activity, you may ask: What do we do? Who does it? Why do we do it? How do we do it?
The examples offer ideas for how this may appear in practice.

 

Key Concepts (with Definitions, Typical Activities/Roles, and Examples)

Business Model
Definition: How an organisation creates, delivers, and captures value – essentially “how we make money.” (Gartner)
Typical activity/role: Designing elements such as customer segments, value propositions, channels, revenue streams, cost structure
Example: A café serves the local community and offers a coworking area → income from coffee and coworking subscriptions

Business Development
Definition: The process of identifying, attracting, and growing business opportunities – new markets, partnerships, products. (Kiflo)
Typical activity/role: Market research, partnership building, assessment of new segments
Example: An IT company explores green technology markets and enters into partnership with a solar panel supplier

Business Developer
Definition: The person/role driving business development – finds opportunities, builds relationships, initiates growth. (BIZDEV: THE ASSOCIATION)
Typical activity/role: Analysis, networking, proposals for strategic initiatives
Example: An employee in a media company working to create new revenue streams from podcasts and events

Business Opportunity
Definition: A specific situation or idea where a business can create value – an “entry point” for growth or new revenue
Typical activity/role: Identifying market gaps, analysing customer needs, assessing profitability
Example: Discovering that elderly residents desire digital day activities → developing a service for this

Translating Customer Needs
Definition: Understanding the customer’s underlying needs and then transforming them into requirements, solutions, or products/services
Typical activity/role: Customer interviews, needs mapping, requirements specification
Example: A company designing a mobile app – interviews users to find they want “flexible planning” and then creates a “movable blocks” feature

Market Activities
Definition: Activities directed at the market: marketing, segmentation, channel selection, positioning, communication
Typical activity/role: Campaigns, content production, target group analysis
Example: A company launches a new product line and runs a digital campaign and influencer collaboration to reach young people

Bid Management
Definition: The process of developing and managing offers (product/service) to customers: requirements, calculation, negotiation, delivery preparation
Typical activity/role: Preparing offer documents, risk assessment, project plan for delivery
Example: A contractor prepares a bid for a municipality: care facility – includes cost estimate, schedule, risk assessment

Execution Capability
Definition: The ability to actually deliver what is planned – from idea to action and result, quality and time
Typical activity/role: Project management, resource allocation, change management, measurement of results
Example: A technology company plans a new module and launches it on the scheduled date with desired quality and budget

Innovative Thinking
Definition: The ability to think anew, challenge established assumptions, create new solutions or approaches
Typical activity/role: Brainstorming, idea development, prototyping, experimentation
Example: A company uses VR technology for training instead of traditional classroom teaching

Portfolio
Definition: Comprehensive overview of a company’s products, services, projects, or business areas – and decisions about prioritisation
Typical activity/role: Assessing what should be continued, discontinued, invested in; balancing risk and resource use
Example: A company has 10 products, considers focusing more on the 3 with highest growth, phasing out those with low margins

Business Area
Definition: A defined area within the business – specific market, product/service line, or customer segment
Typical activity/role: Defining responsibility, goals, strategy for the area
Example: A company has business areas “corporate services,” “private customers,” and “international” – each with its own goals

Sales Strategy
Definition: Overall plan for how to sell products/services – channel selection, customer segments, pricing, competitive advantage
Typical activity/role: Choosing direct vs distributor, inbound vs outbound, upselling, bundling
Example: A technology company decides to sell subscriptions via partners and offers upgrades after 12 months

Corporate Strategy
Definition: Holistic strategy for the company: vision, goals, which markets, core competencies, how to position itself
Typical activity/role: Long-term planning, resource allocation, organisational structure, culture
Example: A company aims to become “leading provider of green solutions in the Nordic region by 2030” – defines which markets and technologies to focus on

Business Needs
Definition: The internal needs a business has to function and develop: resources, processes, competence, systems
Typical activity/role: Identifying gaps, defining improvement projects, investments
Example: A company realises it lacks a digital sales platform and sets up a project to acquire and implement CRM

Product Development / Product Developer
Definition: Development of new or improved products – product developer is the role driving this development
Typical activity/role: Market research, requirements gathering, design, prototyping, testing, launch
Example: A product developer in an electronics company develops a new wireless speaker with long battery life and smart integration

Service Developer
Definition: Development and improvement of services – often intangible offerings, with customer experience in focus
Typical activity/role: Design of service processes, customer journey, pilots, scaling
Example: A bank develops a new digital service for “financial coaching” as a subscription module for customers

Engineering
Definition: Technical/engineering work: design, development, construction, and implementation of technical solutions – component in product/service development
Typical activity/role: Architecture selection, system design, testing, implementation, quality assurance
Example: An engineering team in a machinery company designs new production line equipment with automation

Analytical
Definition: The ability/role to use data, analysis, modelling, and insight to make decisions or identify patterns
Typical activity/role: Data analysis, reporting, KPI measurement, scenario planning
Example: An analyst in retail conducts customer segment analysis and finds that 20% of customers account for 60% of sales

Project Management
Definition: Planning, execution, and completion of projects – ensuring project goals are met within time, budget, and quality
Typical activity/role: Project plan, risk management, progress, stakeholders, deliverables
Example: An IT project manager implements an ERP system in the company, manages the team, schedule, and budget

Realising Innovation
Definition: Moving from idea to actually implemented solution that creates value – not just thinking anew, but making it work and commercialising it
Typical activity/role: Pilot, scaling, business modelling, market launch
Example: A company develops drone delivery for rural areas – pilots, licensing, market introduction

Innovation Strategy

Innovation Strategy
Definition: Overall plan for how the organisation will work with innovation: priorities, resources, timelines, types of innovation. (Innovations4)
Typical activity/role: Defining innovation ambition, evaluation criteria, organising idea portfolio, measuring effect
Example: A group develops a strategy: “20% of revenue in 2030 shall come from products/services that do not exist today”

Strategic Marketing
Definition: Marketing work closely linked to strategy – positioning, brand building, segment selection, long-term goals rather than campaign measures
Typical activity/role: Marketing plan, brand strategy, customer journey, differentiation
Example: A premium technology brand decides to communicate “Nordic design and sustainability” as its core position over the next 5 years

Countercurrent / Concurrent

Definition:

• Countercurrent: Moving “against the current,” i.e., going in a direction that opposes the established, usual, or dominant. (NAOB)
• Concurrent: Moving “with the current,” i.e., following established patterns, directions, or practices. (ordbøkene.no)

Typical activity/role:

• Countercurrent role: Challenging the status quo, developing new paradigms, being a radical innovator.
• Concurrent role: Following best practice, optimising existing solutions, ensuring stable operations.

Example:

• Countercurrent: An innovation leader who deliberately chooses to create a new business model that breaks with industry standards.
• Concurrent: An organisation that further develops its existing product line, improves margins, and follows industry trends.

Commercial

Definition: Something intended for trade and can be sold in a market. (Store norske leksikon)
Typical activity/role: Developing products or services with market payment, business model for revenue, market introduction, sales, and scaling.
Example: A research institution takes a research result and builds a commercialisation plan to launch a product/service that will generate revenue.

Innovator or Not?

A schematic framework for how an organisation can structure roles, techniques, models, and organisational measures so that it either becomes innovative internally – or acts as an advisor/premise setter in public discussions. Divided into four main dimensions – with subpoints – for better overview:

Roles & Responsibilities

Role: Innovation Leader / Chief Innovation Officer
Responsibility: Overall responsibility for innovation strategy, connection to top management
Example activity: Define innovation ambition, establish targets, report to the board

Role: Innovation Ambassador / Champion
Responsibility: Anchors innovation culture in various parts of the organisation
Example activity: Lowers the threshold for idea submission, organises workshops, follows up projects (itonics-innovation.com)

Role: Business Developer / Intrapreneur
Responsibility: Identifies new business opportunities, experiments internally
Example activity: Develops pilot project for a new service, assesses business model

Role: Cross-functional Team
Responsibility: Group with various competencies driving innovation
Example activity: Team with marketing, technology, UX, and finance working together on a new solution (8base.com)

Role: Advisor / Premise Setter (Public)
Responsibility: Functions externally: provides advice, participates in policy discussions, connects private/public sector
Example activity: Prepares report for authorities on how business can stimulate innovation

Role: Innovation Portfolio Manager
Responsibility: Monitors innovation portfolio: which initiatives are invested in, which are stopped
Example activity: Sets up an overview of all innovation projects, prioritises resources

Techniques & Models for Idea Generation, Development, and Implementation

Technique/Model: Design Thinking
Explanation: User-centred problem solving: empathy, idea, prototype, test (teamazing)
When used: When there is a need to understand customer needs and create new services

Technique/Model: SCAMPER
Explanation: Technique for generating new ideas by substituting, combining, adapting, modifying, using differently, etc. (teamazing)
When used: When wishing to further develop existing products/services

Technique/Model: Chain-linked Model for Innovation
Explanation: Model showing that innovation occurs through complex links between research, product development, marketing, etc. (Wikipedia)
When used: For companies with research and development activities that must connect internally and externally

Technique/Model: Technology-Organization-Environment Framework (TOE)
Explanation: Model explaining how technological context + organisation + environment affect innovation adoption (Wikipedia)
When used: When the organisation is considering new technology or wants to understand why innovations succeed/fail

Technique/Model: Innovation Portfolio Management (Idea → Prototype → Business Model → Launch)
Explanation: See – Idea → concept → prototype → implementation (Medium)
When used: To structure innovation processes and ensure commercial realisation

Organisational Measures / Structure & Culture

Measure / Structural Step: Establish dedicated innovation team or SBU (strategic business unit)
Purpose: Provides clear responsibility and resources for innovation (McKinsey & Company)
Example: A company establishes an “Innovation & New Business” unit with budget and goals

Measure / Structural Step: Cross-functional and network-based organisational forms
Purpose: Promotes collaboration across silos – increases creativity and adaptability (8base.com)
Example: A project team with marketing, UX, technology, finance together – and connected to external partners

Measure / Structural Step: Culture for experimentation and “fail-fast”
Purpose: Creates room for risk-taking and learning – important for innovation (Business Initiative)
Example: Includes test and pilot phase, temporary budget frameworks, celebration of learning

Measure / Structural Step: Open innovation channels / external partnerships
Purpose: Utilises external knowledge, ideas, and resources (WONDERWERK)
Example: Collaboration with universities, startups, customers to get input for new solutions

Measure / Structural Step: Management anchoring and strategy
Purpose: Innovation must be linked to overall strategy and have support from top management (McKinsey & Company)
Example: The board sets a goal that “30% of revenue in 5 years comes from new business areas”

Measure / Structural Step: Measurement and management (KPIs, portfolio measurement)
Purpose: To follow up on innovation efforts, prioritise, and adjust
Example: Number of pilot projects, time to market, ROI on new offerings

Commercialisation & Market Role (Internally or as Advisor)

Commercial Approach: “Internal Innovator” Role
What it involves: The organisation develops its own new business opportunities and launches them
Example: An industrial company builds a new digital service that grows to 15% of revenue

Commercial Approach: “Advisor/Premise Setter” Role
What it involves: The organisation offers expertise, processes, or frameworks to others (companies or public sector)
Example: A consultancy develops innovation strategy and methodology sold to municipalities and businesses

Commercial Approach: Public Participation / Policy Influence
What it involves: Advising authorities on innovation frameworks, regulation, or public-private cooperation
Example: An organisation participates in a public committee that sets frameworks for innovation support

Commercial Approach: Scaling and Business Modelling
What it involves: When the prototype works – how will it make money, who is the customer, which channels?
Example: New service gets a subscription model, international distribution, and SaaS model

Commercial Approach: Portfolio and Risk Management
What it involves: Managing several initiatives in parallel – some large, some small; spreading risk
Example: The organisation has 10 innovation initiatives, 70% incremental, 30% radical