Product Innovation and Its Process

Innovation is a wide-ranging concept with key emphasis on modernization. As per Inventta.net, innovation is the utilization of latest ideas. It translates into success for companies in terms of raised revenues and tapping new markets and lastly raised profit ratios.
Innovation is further broken down into several categories. For example, process/ product innovations are known as technological innovations. Further innovations are related to new business models, new markets, new processes, and latest organizational methods.
At times, people mix innovation with innovation processes since constant development is a vital ingredient in both. For an innovation to be implemented, certain factors are affected such as:
* The pricing of the product
* The market share of the product
* The company’s revenue
Constant development and improvements alter present market returns, but don’t work in the long term. However, they keep the products competitive in comparison to their rivals.
Types of Innovation
There are several kinds of innovations. Some certain kinds of innovation are mentioned below:
1. Product innovation
The product undergoes certain changes in its overall outlook and extent of its use. For instance, automatic car transmissions are a step up to manual transmission cars
2. Process innovation
It is related to the changes needed in the products/ service sector. It may not have an effect on the product itself but it may affect the manufacturing process. The key aim is to drive down the costs and step up the productivity. For instance, applying six sigma quality measure to an existing plant
Structuring Product Innovation Process
In case of industrial companies, a new product design isn’t an isolated process. Product design is part of a bigger process known as product development. Product development involves developing a new product whilst outlining the plans for production, distribution, and mass selling.
Therefore, business development is the bigger portion of business. Product development in essence is a component of product innovation process. Product innovation takes in consideration all the processes required for adoption before launching a new product in the market. Hence, innovation entails development and distribution of a product by the company.
Relationship of Product Innovation with Process
Innovation is much needed for retaining the competitive edge and survival of a company. Companies need to adapt to the dynamic business environments today. It ends up in multiple innovative products, processes, and services designed by the companies. For most companies, their engine of growth is new products added in their portfolio. The competitive position of a company is seen by its willingness and ability to adapt and include new products in its portfolio.
Companies need to have fast cycles launching and developing new products for ramping up their full-scale production, highly necessary for capitalizing on market share. Since the product cycles are getting shorter with the passage of time, the factor of commercial production increases even more in order to capitalize on the market and gain return on investment. Innovations are the fulcrum of business strategy in industrial operations.
For most companies, product innovation systems as well as process innovation are imperative. There is an intricate relationship between products developed and processes implemented, especially in the bio-chemical industry.
Formulating innovation strategies management takes in consideration the product-process relationships. Altering the product development system has considerable effect on the company’s manufacturing process. Implementing changes in the existing product require weighing in the pros and cons, and also by considering the unique needs of each industry it is implemented in.

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