Innovation

• What are the 2 types of innovation?

  • Product innovation
  • Process innovation
• What is product innovation?

  Launching new or improved products on to the market
• What is process innovation?

  Finding better or more efficient ways of producing existing products, or delivering existing services
• What is a first mover advantage?

  A competitive edge that a company gains by being the first to introduce a product or service to a market
• If a business has a first mover advantage by using product innovation, what benefits can this lead to?

  • Higher prices
  • Build early customer loyalty
  • Enhanced reputation as an innovative business
  • Increased market share
• What are the benefits of process innovation?

  • Reduced costs
  • Improved quality
  • Greater flexibility of operations
• What are the key benefits of effective innovation?

  • Improved productivity and reduced costs
  • Helps build a brand
  • Esablishes an advantage over competitors