There are three general categories of innovation: product, process, and business model. By narrowing your focus on a specific type of. Product innovation refers to a change in the product. It is also a product innovation. The second type of innovations that dominates innovation effort of firms is process innovation. It involves improvement in the process of producing a product. This paper studies the relationship between product- and process-innovation. After A positive impact of product-innovation on process-innovation. can be.
|Published:||19 June 2015|
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It can be in two different forms.
First, an improvement in the performance of a product. For example, an increase in digital camera resolution. Second, new features in a product.
The 3 Types of Innovation: Product, Process, & Business Model
For example, the new iPhone 7 has dual cameras which did not exist in the previous iPhones. It is also a product innovation.
The second type of innovations that dominates innovation effort of firms is process innovation. It involves improvement in the process of producing a product.
It includes changes across all the value chain activities. It includes improved inbound logistics, better media planning, or improved manufacturing process.
For example, using instant demand data to plan production run is a process improvement. It can lead to lower inventory and lower stock outs.
While the product innovations are often visible to the customers, process changes are not There are some significant differences between the two. While the product innovations are often visible to the customers, process changes are not.
- The 3 Types of Innovation: Product, Process, & Business Model - Differential
- Process Innovation
Product innovations target product improvement while process innovation targets cost improvements. Early in the technology lifecycle, companies face high market and technological uncertainty.
Technology and consumer needs are less understood.
Product vs Process Innovation
Firms experiment with product features, design, and performance. At the same time, consumers are not clear on what they need, want and like.
In early stages, product innovation is the best way to reduce technological and market uncertainty. As a result, product innovation dominates in the early stages.
But later on, as technological and market uncertainty reduces, firms focus on efficiency.
Product vs process innovation. Which is more important?
At that time, process innovation becomes more important. The role of dominant design in innovation choices Is there a clear point when firms begin to change their innovation focus from product to process? Fortunately, research provides a clear answer product and process innovation.