PRODUCT INNOVATION VERSUS PRODUCT IMPROVEMENT

I think Innovation is the WILLINGNESS to try new things and not follow prescribed patterns. More of a mindset then practice. Thus for a Business it is must to innovate new products ,new ideas. The main benefit of Innovation for the Organization is not competitive advantage, but it is Survival. It is a successful conversion of new concepts and knowledge into new products, services, or processes that deliver new customer value in the marketplace.

What is a Product Innovation?

Innovative products are those that replace or build on current offerings, they provide new features or other advantages that allow users to operate more efficiently and/or less expensively. Classic examples include the electric light bulb, the iPod, and GPS navigation systems. These products introduced radically new options for customers that quickly became widely demanded in markets around the globe while generating handsome profits for their producers.

Like When Sony introduced the first Walkman in the late 1970s, they changed the listening music habits of millions of people worldwide and became the industry leader making hundreds of millions of dollars in the process. That was Product Innovation  .

Product innovations include both new products and new uses for existing products.

·         New Product:

These are goods and services that differ in their characteristics or intended uses from products previously produced by the firm.

An example is the first microprocessors and digital cameras are examples of new products using new technologies.

·         New Uses for products:

Under these there are minor changes in the technical specification of a product.

 An example is the introduction of a new detergent using an existing chemical composition that was previously used as an intermediary for coating production only.

What is Product Improvement?

There is a famous saying “Continuous improvement is better than delayed perfection”.  So Companies many times prefer to do improvement in their existing product in order to compete with the competitors. Thus Product Improvement is an adjustment made to an existing product, usually made for greater appeal or functionality. An improvement may include a change to a product’s shape, adding a feature or improving its performance.

For example, the Apple iPhone was revolutionary when it came out, but it’s success was limited to a handful of early adopters. To push the smart phone into the hands of regular people Apple needed to improve their product and make it outstanding. So they improved its performance and speed. Yes, they added features but the iPhone is relatively the same as it was when it was initially released. This isn’t a innovation. This is Product Improvement.

Improvement versus Innovation:

Innovation by definition adds value, and it is probable that a successful innovative solution will be the one that improves the process and/or its output. But innovation and improvement are often referred to in tandem, as “the continuous improvement and innovation team.”

When Sony introduced the first Walkman in the late 1970s, they changed the listening music habits of millions of people worldwide and became the industry leader making hundreds of millions of dollars in the process. That was Product Innovation. But when competitors raced to match with its product by adding features or modifying the product its Product Improvement.

“Not all improvements are innovations, most innovations are improvements, and there are some innovations that are not improvements.”