Product Innovation vs

Process Innovation

Presented by :- ANSHUL RAWAT

 Product Innovation
A Product / Good is any tangible offering that might satisfy the needs or
aspirations of the consumer.
Product innovation refers to a change in the product. 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. For example, the new iPhone 8 has dual cameras
which did not exist in the previous iPhones. It is also a product innovation.
 Process Innovation
• A Process is combination of facilities, skills and technologies that are used to
produce products or provide services.
• Process Innovation 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.
GRAPH
• The figure shows the increasing volume of new products in the section where a
dominant design has yet to emerge. As shown in the figure a large amount of
product innovation occurs until the dominant design is established. This phase
is called the fluid phase.
• After design is establishment, the focus shifts to improving the efficiency of
manufacturing and production of the product. This results in rise of process
innovation and is called the transitional phase.
• Finally the product enters the specific pattern in its lifecycle, where
incremental product and process innovation occurs. Specializing the product
further with regard to customer needs or demands. This phase is highly
dangerous since technology lock-in often occurs, resulting in low firm agility,
and ultimately no way of adapting to new demands or technological evolution.