Using market vision to steer innovation

A fundamental purpose of innovation is to improve business performance. Three main types of innovation can be called upon for this purpose: market innovation, product innovation, and process innovation. It is argued that market innovation—which involves improving the mix of customers and how these are served—provides the raison d'etre for all other forms of innovation. Innovation which is pursued for its own sake is often a passport to failure. This paper shows how market vision can steer innovation in ways which exploit the full potential of a business.