In our previous article on maximizing company growth through innovation, we highlighted the importance of why a company should innovate and how it can boost the growth and development of any organization.
It is also important to state the three (3) different ways in which a company can innovate in order to improve its processes and remain relevant.
Product Innovation
In the different types of innovation, product innovation is the most talked about. It simply refers to the changes in a product. Product innovation also comes in various forms which involves the development of a new product, changes in the design of an existing product or improvement of features in a product.
Companies who expand and have competitive advantages amongst other businesses in their industry utilize product innovation by differentiating their product to make it more unique.
Process Innovation
According to Eustat definition, process innovation consists of the implementation of a new or considerably improved production technology, or new or considerably improved service supply or product delivery methods in an establishment. The result must be significant with respect to the level of production volume, the quality of the products (goods or services) or the costs of production and distribution.
Process innovation comes in the form of new technology, skills, tools, and equipment. The combination of these processes helps provide quality service for a product. It is an important stage of innovation which helps in the increment of production levels and reduction in costs.
Hence, the innovation process in an organization should focus on (1) The delivery process where tools and techniques can help improve delivery systems. (2) In production where technology and equipment are essential in the enhancement of the manufacturing process.
An example of a company that has strived in process innovation is ZARA which has top notch manufacturing, production, and distribution processes.
Business Model Innovation
A business model innovation focuses on the overall transformation of an organization. It is simply the development of concepts that supports the organization’s mission. It also describes a new way of creating value for customers without having to create a new product or service but redefining existing ones.
One of the major reasons why business model innovation is so important is because of the strong impact it has on profit margins. Any organization aiming at achieving success through business model innovation must focus on:
- Creating unique values for customers
- Securing the resources needed to deliver the value proposition
- Identifying the important processes required to deliver the value proposition
To sum up, the very first step to innovation is understanding the three different types and applying them to your company. Thus, If you have an idea you want to turn into a digital product, check out this innovative company to learn more.
