The Two Nested Innovation Processes of 4G

For radical innovation to be successful both the business model and the technology must be simultaneously created. The “Two Nested Innovation Processes” figure shows how this works at a high level. The outer loop is an innovation process with larger scope that develops new capabilities in a group of suppliers, revised business models and industry structures including value chain as parts of a new dominant design. Within this outer loop is a second iterative ‘spiral’ process that operates inside as an inner loop to facilitate collaborative learning between a group of suppliers, including their development and delivery partners and their customers, to focus on developing a new dominant design.