Some companies focus on product innovation for competitive advantage, others on operational innovations. For breakthrough advances, both approaches might be wrong.

According to a new report by Diamond Management & Consultants Inc., companies that bet solely on one innovation strategy miss opportunities to create superior growth into the future. The company calls organizations that combine operational and product innovation to change their economic and service models “structural innovators,” and says they’ll be in the best position to achieve sustainable growth.

Diamond released its research in a new white paper called “Structural Innovation for the 21st Century.” It identifies the primary capabilities of product and operational innovators, as follows:

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