Primarily innovation and comprises of-
1. Process innovation.
2. Product innovation.
Process innovation deals with internal operations such as- efficiency improvement, productivity increase, data management etc.
Product (or services) innovation deals with creating new products or services, to bring- in new revenue streams, develop products (or services) that add value to current initiatives, make customer experience more satisfying etc.
It has been found that typically 75% of industry based innovations belong to process innovation, while only 25% share is attributed to product innovation.
However, ‘Innovation’ is not an initiative. It’s a business process. The ‘Innovation’ process begins with market selection. It includes customer mapping, steps to uncover customer needs, analyze unmet needs, design or select a growth strategy and generate product (or service) concepts. Approved concepts then enter the 'Development' phase- a separate process.
If the ‘Innovation’ process were executed effectively, only winning products would enter the ‘Development’ process consequently, innovation success rates would rise substantially. This is especially because when ideas are generated around specific unmet customer needs, the chances of devising a solution of great customer value increases dramatically.
More so, knowing where to focus creatively changes the dynamics of idea generation. If you’re an organization that doesn’t wish to thrive on chaos, rather grow strategically, then Continuous Innovation is the way to go !
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