What Is an Example of Innovation? 5 Real-World Cases That Changed the Game

Innovation

Jul 24

Innovation isn’t always “ground-breaking.” Sometimes, it can be as simple as solving an old problem in a completely new way. At its core, innovation is the act of improving or rethinking something to make it better, whether it’s a product, a process, or a mindset.

However, while companies talk about innovation constantly, few execute it well. According to BCG’s 2024 Global Innovation Survey, 79% of executives chose innovation as a top-three priority — yet only 30% believed their organizations were effective at it. That gap is where most companies stumble.

In this article, we’ll bridge that gap by showing real-world examples of innovation that actually worked.

Understanding Innovation in Action

Innovation is about solving real problems creatively, efficiently, and often in ways that challenge the status quo. Sometimes it’s disruptive, sometimes subtle, but it always drives progress.

More importantly, innovation isn’t limited to apps or hardware. A new business model, a smarter internal process, or a culture shift that unlocks better performance — all of these count. In fact, 15% of the most successful innovations in recent years had nothing to do with technology at all.

Generally, innovation falls into four categories:

Product Innovation: Creating something new or improving what already exists.
Process Innovation: Changing how something is done to increase speed, quality, or cost-efficiency.
Business Model Innovation: Rethinking how value is delivered or monetized.
Cultural/Organizational Innovation: Shifting internal dynamics to unlock people’s full potential.

5 Powerful Examples of Innovation

Here are five examples of innovation from powerful companies.

Apple iPhone

Apple’s iPhone, launched in 2007, revolutionized communication, to say the least. It combined a phone, a portable internet device, and a high-quality camera into one sleek touchscreen device. There was no longer a need for physical keyboards and styluses common in earlier smartphones.

Coupled with advances in sensors, processing power, and lithium-ion batteries, the new product quickly gained mass adoption in its very own category. Plus, the iPhone’s user-centered design and intuitive interface set new standards for ease of use. Initial sales hit 1.4 million units in 2007, with over 2.3 billion iPhones sold globally by 2024.

Its impact reshaped the industry: Nokia’s market share declined, while Samsung and others adopted touchscreen technology. Moreover, the smartphone market grew exponentially, reaching over 80% penetration by 2017.

Tesla

Tesla exemplifies innovation not just with its electric vehicles but also via its disruptive business model and energy ecosystem. Beyond producing over 1.3 million EVs in 2024, Tesla also pioneered direct-to-consumer sales. It bypasses traditional dealerships to control customer experience and reduce costs.

Tesla’s over-the-air software continuously updates vehicle performance and adds features post-sale — a very rare practice in the automotive industry. For instance, updates have improved battery range and added autonomous driving capabilities without physical recalls.

The company’s Supercharger network, now with over 70,000 connectors worldwide, also addresses range anxiety. Plus, it supports mass EV adoption by making long-distance travel fast and convenient.

Airbnb

Airbnb changed the hospitality industry by turning underused real estate, such as spare rooms and entire homes, into a global accommodation network. Founded in 2008, it allowed millions of homeowners to monetize their unused space, creating a new peer-to-peer lodging market that challenged traditional hotels. By 2024, Airbnb had over 1.5 billion check-ins worldwide.

However, the company’s innovation didn’t take a hit in the face of controversy. In recent years, concerns about housing shortages, neighborhood disruption, and illegal listings surfaced in major cities. In fact, up to 72% of listings were found illegal between 2010 and 2014.

This led to a change in laws. For instance, Amsterdam introduced limits on rental days and guest numbers, while New York enforced strict safety and permit requirements. Instead of retreating, Airbnb responded by working with governments, collecting tourist taxes, and implementing registration systems to maintain compliance.

Netflix

Netflix’s evolution is the perfect example of process, product, and business model innovation reshaping an industry. Founded in 1997, it disrupted traditional video rental stores by offering a subscription model with no late fees. It quickly reached 600,000 subscribers by its 2002 IPO.

The major innovation came in 2007 when Netflix launched its own streaming service. This allowed on-demand digital viewing and shifted the company’s revenue focus from DVDs to streaming by 2010, when it had over 20 million subscribers.

Netflix’s global expansion began in 2010, and by 2024, it had more than 280 million subscribers across 190+ countries, with a market cap exceeding $235 billion. Its bold move into original content production, starting with House of Cards in 2013, also made binge-watching popular and challenged traditional studios.

Satya Nadella at Microsoft

Satya Nadella’s leadership at Microsoft since 2014 proves that innovation goes beyond products to organizational change. Nadella shifted Microsoft’s long-standing “know-it-all” culture (plagued by internal competition and siloed work) into a “learn-it-all” growth mindset.

He encouraged risk-taking, fast failure, and customer obsession across 130,000+ employees. Under Nadella, Microsoft’s market value increased nearly tenfold by 2023, with a 27% annual growth rate.

How to Drive Innovation in Your Own Work or Team

There are a few clear patterns in every example.

First, innovation starts with a deep understanding. These companies didn’t just guess what customers needed, but instead listened, observed, and solved real pain points. According to a McKinsey & Company study, companies that effectively use customer insights to inform their innovation strategies are 85% more likely to achieve above-average revenue growth.

Second, the most successful innovators disrupted their own models before someone else could. Netflix abandoned DVDs. Airbnb admitted its regulatory landscape wasn’t compliant. These choices weren’t safe, but they were necessary.

Third, innovation often comes from rethinking what already exists. Airbnb didn’t invent the concept of hospitality — it reimagined how people use space. Tesla didn’t create cars, just redesigned what they could stand for. You don’t need a brand-new idea, maybe just a better angle on an old one.

And finally, execution is everything. Many companies have great ideas, but only a few turn them into consistent outcomes. In fact, up to 75% of organizations fail to successfully execute their strategic plans.

Conclusion

Innovation isn’t always about doing stuff differently, just better. The best examples come from solving real problems, as pioneers at Apple, Netflix, and Tesla have done.

Now that you’ve read these examples, you can also make bold and practical changes built on action. Whether you change a product, a process, or how people think, the goal is to just make progress that sticks.

For more insights on innovation and how to build buy-in across your organization, check out Sheri Jacobs’ talks on innovation and change leadership.

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Sheri Jacobs

Innovative CEO, bestselling author, and award-winning wildlife photographer, Sheri Jacobs empowers individuals and organizations to assess capacity, take risks, and solve complex challenges. Explore her unique insights and expertise.

https://sherijacobs.com