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INNOVATION (FACTORS IMPACTING SUCCESS (TIMING (economic condition
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INNOVATION
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TYPES OF INNOVATION
PROCESS INNOVATION
changing and improving how a business operates, manufactures, distributes and markets its products and services
- offers efficiency
- cost advantages
- reduce production cycle
eg manufacturing, marketing, agriculture, financial industry
SERVICE INNOVATION
new and improved service.
- service design, new service development
eg distant learning, cashless payment, online payment
PRODUCT INNOVATION
the development of a new/improved product in a market.
- improvement in functional characteristics and technical abilities
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EXAMPLES
- the Sony Walkman (to recover declining sales in cassette tape)
refers to changing and improving the features, materials or functions of a product or service
BENEFITS OF INNOVATION
FINANCIAL GAIN
- increase in income or new income source through the creation of a new market or capture of more market share
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INCREASED MARKET SHARE
- results in a new product or service that capture high market share/creates a new market
- may create fads
- respond to customer demand
- meet market trend
- gain customer loyalty = increase consumer awareness of brands and sales
- enhance public image
the process of creating something new and improving existing systems, products and processes