Open Innovation
17-Dec-11
Product innovation and Process Innovation
Product innovation – the introduction of new types of goods and services for the external market and
Process innovation – enhancement of internal production processes for goods and services [Perri 6, 1993].
UNESCO definitions for Product innovation and Process Innovation
Product innovation: introduction of a good or service that is new or significantly improved with respect to its characteristics or intended uses. This includes significant improvements in technical specifications, components and materials, incorporated software, user friendliness or other functional characteristics.
Process innovation: implementation of a new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and/or software. The customer does not usually pay directly for process, but the process is required to deliver a product or service and to manage the relationship with the various stakeholders.
Process innovation is concerned with improving internal capabilities [Johne and Davies, 2000; Johne, 1999] and safeguarding and improving quality [Johne, 1999]
Effects of innovations in a company as per industryweek.com’s study in 2005
overall revenue growth (78%) customer satisfaction (76%) growth in revenue from new products or services (74%) increased productivity (71%), and earnings/profit margins (68%)‖
Healthcare innovation can be defined as the introduction of a new concept, idea, service, process, or product aimed at improving treatment, diagnosis, education, outreach, prevention and research, and with the long term goals of improving quality, safety, outcomes, efficiency and costs.
Limitations in innovations in healthcare
―while hospitals and other care providers have long been quick to adopt breakthrough technology in medical devices, procedures and treatments, far less attention has focused on innovations in networking and
Product innovation and Process Innovation
Product innovation – the introduction of new types of goods and services for the external market and
Process innovation – enhancement of internal production processes for goods and services [Perri 6, 1993].
UNESCO definitions for Product innovation and Process Innovation
Product innovation: introduction of a good or service that is new or significantly improved with respect to its characteristics or intended uses. This includes significant improvements in technical specifications, components and materials, incorporated software, user friendliness or other functional characteristics.
Process innovation: implementation of a new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and/or software. The customer does not usually pay directly for process, but the process is required to deliver a product or service and to manage the relationship with the various stakeholders.
Process innovation is concerned with improving internal capabilities [Johne and Davies, 2000; Johne, 1999] and safeguarding and improving quality [Johne, 1999]
Effects of innovations in a company as per industryweek.com’s study in 2005
overall revenue growth (78%) customer satisfaction (76%) growth in revenue from new products or services (74%) increased productivity (71%), and earnings/profit margins (68%)‖
Healthcare innovation can be defined as the introduction of a new concept, idea, service, process, or product aimed at improving treatment, diagnosis, education, outreach, prevention and research, and with the long term goals of improving quality, safety, outcomes, efficiency and costs.
Limitations in innovations in healthcare
―while hospitals and other care providers have long been quick to adopt breakthrough technology in medical devices, procedures and treatments, far less attention has focused on innovations in networking and
References: 1. Rural sociology (Rogers 1995) - - the spread of innovative individual practice in rural areas, such as farming methods; 2 3. Communication studies (Rogers and Kincaid 1981) - - new information and ideas spread by either mass media or interpersonal communication; 4 5. Development studies (Bourdenave 1976) -- expanding research to include technological, ideological and political aspects of the innovation and its dissemination; 6 8. Studies of the structural determinants of organizational innovativeness (Damanpour 1991, 1992, 1996) - innovation viewed as a process likely to make the entity more profitable; 9 12. Narrative organizational studies (Czarniawska 1998; Gabriel 2000; Buckler and Zein 1996; Bate 2004) - - innovative organization as the ability to generate, capture and circulate new ideas as "shared stories" within a "community of practice"; 13