There are several types of innovation methods, including disruptive innovation and incremental innovation. Disruptive innovation involves the development of new technology or process that competes with a current product or service. These innovations are usually inferior to the existing product or service, and they have limited market appeal. Often, they also require a long development time. However, they are a great way to distinguish a company from its competition and increase revenue.
While product innovation is commonly thought of as the sum of all innovation methods, it is important to understand that it is just one form. For example, developing a dual-cyclone vacuum cleaner took fifteen years and involved developing 5,000 prototypes. Another example is the creation of a new glass material that is now used in a wide variety of technology products. In the case of a consumer product, innovation in materials can be an excellent way to differentiate a business from its competition.
Moreover, process innovation is not likely to yield direct sales increase, but it can reduce production costs, which ultimately translate into profits. Furthermore, process innovation is often the least risky approach. It can lead to better workflow and supply chain efficiency and maybe the most effective option. Among the types of innovation methods, process innovation is the most difficult to measure, which makes it a less popular choice. The benefits, however, are often seen internally.
Looking for a business coach to help?
This Scorecard has been designed to show entrepreneurs, startups and small businesses their blind spots and provide instant, actionable steps on how to improve