This type of innovation results in minimizing production costs, improving processes, and eliminating barriers in the production process. As we mentioned earlier, this type of innovation is not visible to the final user but only at the company level. Process Innovation is about innovating at the level of capabilities, skills or technologies used for the production and delivery of a service or a product. On a business level, product innovation happens when the company is trying to reach new market segments, or trying to fain competitive advantage. Product Innovation is the result of technological advancement or changes among the consumers, based on social, cultural, or economic shifts. The improvement of an already existing product – new Apple phones, which come out every year or so.
The development of a new innovative product which has to solve an old customer need in a new way: book readers (such as Kindle) or action cameras (such as GoPro).There are two cases of Product Innovation – the creation of new products or the improvement of existing products. Product innovation is the most common type of innovation. The main difference between these two types of innovation is that product innovation is visible to the final user, while process innovation is not. This innovation approach is about the “object” of innovation – the product, the final results, and its features o r the process through which the product is being developed. Product Innovation and Process Innovation Based on the outcomes of innovation – Social Innovationġ.Doblin’s 10 types of innovation – based on the configuration of the business, the offering and the customers’ experience – Profit Model Innovation, Network Innovation, Structure Innovation, Process Innovation, Product Performance Innovation, Product System Innovation, Service Innovation, Channel Innovation, Brand Innovation, Customer Innovation.The Innovation Map – Routine Innovation, Radical Innovation, Disruptive Innovation, Architectural Innovation.Based on how the market evolves – Technological Innovation and Business Model Innovation.Based on the object of innovation – Product Innovation and Process Innovation.There are various approaches to innovation based on several factors:
What are the most important approaches to innovation ? You can also understand the innovation process through the innovation funnel. Launch – If the ideas go past the testing phase, they are being launched on the market.Are they a good fit for the market? Are they solving real users’ needs? Testing – Here, ideas are being refined and tested from the market, and users’ point of view.Also, try to find out what resources you need to develop the selected ideas. Criteria – This is the step where ideas are being selected and you have to make sure that they can bring real value to your company.Try to have your sources of ideas (people, materials) from varied backgrounds so you can get a broader understanding of your problem. Ideas – This is where ideation happens so try to gather as many ideas as possible.The innovation process usually looks like this: There isn’t one fixed innovation process, because it can be adapted from case to case. It starts with identifying a problem and creating a solution that addresses a customer need.
The innovation process is the sum of all the activities needed to commercially apply the innovative idea.