Explain the stages of product & process innovations on a life cycle chart. How does process innovation effect the product innovation? ANSWER:
A process innovation is the implementation of a new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and or software.” There are many examples of process innovation since industry started to develop and the purchase and use of products became a way of life.
Examples of process innovations include Ford’s first use of the production line by bringing product to the person during fabrication. The lithography method used to fabricate microchips was a process innovation that has touched the lives of most people on the planet. The Pilkington glass method is yet another process innovation as are the methods used to manufacture small disk drives currently used in some of the popular MP3 players.
Groupon has taken two simple desires: the consumer’s want of a good deal and the vendor’s need to get new customers, joined them in a clever way, and became a big business commanding a huge valuation. Most people look for bargains and Groupon’s value proposition makes sense. There are arguments on whether Groupon’s innovation will turn out to be sustainable, but one can not argue that Groupon has pioneered and scaled the “offer space” like few others. Because of Groupon, how merchants attract business and how people buy has changed.
It is defined as the development of new products, changes in design of established products, or use of new materials or components in the manufacture of established products.Thus product innovation can be divided into two categories of innovation: development of new products, and improvement of existing products.
* New product development :It describes the complete process of bringing a new product or service to market. There are two parallel paths involved in the process: one involves the idea generation, product design and detail engineering; the other involves market research and marketing analysis. * Improvement of existing products: This includes, but is not limited to, improvements in functional characteristics, technical abilities, or ease of use. Product innovation often takes place when a product's sales are in decline. This is an obvious and commonly used method to extend the life of a product.
Some examples of product innovations:
Nintendo Wii has integrated an innovative controller technology into a prevalent gaming platform and changed the way we enjoy console games at home. There have been hardware extensions to video games (GuitarHero guitars, racing wheels, and Twister boards), but the idea that we will make a hand-held device that translates kinetics into visual screen feedback, and its simple implementation are new. The original “Pong” was a tennis match. Tennis on the Wii is radically different from any video game I have ever played. The Wii had changed what we mean by playing a video game.
Product Life Cycle
Product Life Cycle is the common theory in the business which provides the position of a business in the market. There are five stages which include development, introduction, growth, maturity and decline.
* development stage
In the development stage, the companies plan to start some business and make a business plan. For example, for the first time when Nike would have decided to start its brand.
* Introductory Stage:
Motive: Creating awareness
Branding begins and quality levels are established. If possible, patents and trademarks are obtained for the intellectual property. Distribution is limited, costs are high, and volume is low.Promotion is based on creating awareness and making a place in the market.
* Growth Stage:
Motive: Penetration, Positioning and loyalty.
Prices are steady to declining, as every participant in the industry is...