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How to innovate beyond the physical

Writer's picture: Miikka LeinonenMiikka Leinonen

In our day-to-day business, we often think of our offering in terms of products and services. But is that really all we should be focusing on? Are we limiting our potential as innovators?


Intangible flow abowe your product

Beyond the physical product and digital services, there's an expansive, elastic world of intangible opportunities that shapes value, perception, and ultimately, the experience of your customers. These are the elements that cannot be packaged in a box, but are just as critical—if not more—to your success.


I created a canvas to visualize this concept: at the bottom is the physical product—the solid, concrete foundation. But above that lies a vast, interconnected network of elements that transform the product into something much more. These elements are dynamic, fast-evolving, and self-learning—they are the intangibles that define the true potential of your offering. Consider connection, adaptability, brand perception, customer experience, and even the emotional impact of your product or service. Perhaps that is where the real innovation potential lies.


Too often, businesses overlook these intangibles because they are harder to quantify and therefore harder to plan for. Yet, they profoundly impact the product, the service, and its value. For example, you might design a phone, but what you're really creating is a platform, an experience, a lifestyle, a tool for personal expression. The phone is elastic—its value stretches far beyond the physical materials used to create it.


What does this mean for your innovation strategy? It means innovation shouldn't be limited to the product or service itself—it should expand to encompass the intangible elements surrounding it. How can you innovate the customer experience, the connections your product facilitates, or the brand narrative that forms around it? In a world increasingly driven by intangible forces—emotions, brand trust, shared values—those who master innovating these abstract yet powerful elements will be ahead of the curve.


Take a moment to consider: are you designing a product or a service, or are you creating a much broader experience? Should we innovate in these elements that we often leave unseen? By shifting the perspective from a purely physical product to something that includes these crucial intangibles, we unlock a broader array of innovation opportunities and ways to differentiate ourselves in the market.



Offering Canvas - Miikka Leinonen

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