When we think about innovation, most often we are trapped with the paradigm where new products are associated with new technology. The product to be commercialized on the market must have new features that attract customers. As a precondition for these features, new technology must be embedded, hence investments for R&D need to be allocated.
Along with such investments, the acquisition of new knowledge to build the capacity to deploy an innovative idea needs to be orchestrated. Consequently, the capital expenditure is spent not only for the hard but also soft side of R&D investments.
But to extend an innovation, a company does not need to initiate radical things. Combining the existing competency with what is needed from the customer side may sometimes bring a unique value proposition for a company.
Consider this case. TNT is often associated with a delivery of goods, most often documents and other sample merchandises. Ordinary packages including fragile ones are inclusive. However, during the SEA Games in Bangkok, samples of blood from athletes need to be tested in China. These samples must be packed in certain temperature to keep the sample valid for testing. Thus, TNT launched its 'Medpak Thermo' service where samples are kept cold by packing them in dry ice.
Medpak Thermo service may be new for TNT. The company needs to source the packing box filled with dry ice, maintain the temperature inside the box, learn new packaging methods for blood samples and ensure the delivered sample meets the criteria for blood testing.
New processes were learnt, but definitely these ones were not new since packing blood samples for laboratory testing has been practiced for decades. The learning curve takes some time, but once TNT gains capabilities to deliver such thing, the company can maintain its business sustainability with this new service.
