Innovation

Two main types of innovation:

• Product innovation:

  • Launching new or improved products (or services) onto the market

• Process innovation:

  • Finding better or more efficient ways of producing existing products or delivering existing services

Product Innovation- Benefits:

• Greater perceived added value

• Higher prices

• Build early customer loyalty

• Enhanced reputation as an innovative business

• Increased market share

Process Innovation- Benefits:

• Reduced costs

• Improved quality

• More responsive customer service

• Greater flexibility of operations

Key Benefits of Effective Innovation:

• Improved productivity and reduced costs

• Helps build a brand

• Establishes an advantage over competitors

• Builds a strong organisational culture which should attract more talent

• Higher sales and profits