Innovation

Product vs. Process Innovation

The primary differences between these two innovations are, as their name suggest, ones that use new or existing technology to either improve, create and/or differentiate an existing product or used to improve a process. Additionally, both have vastly different schedules with regard to the time it takes to develop the innovations to the highest degree possible. Whereas products have high levels of innovation in the introduction stage of their lifespan, process innovations do not reach their highest levels until shakeout and maturity phase.

Markets-and-Technology Framework.

The basic framework for innovation can be thought of through the diagram below.

















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<p dir="ltr" style="line-height:1.295;margin-top:0pt;margin-bottom:8pt;"><span style="font-size:14.666666666666666px;font-family:Calibri;color:#000000;font-weight:400;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre-wrap;">1. <span id="E77" is="qowt-word-run" qowt-eid="E77" style="font-weight:normal;display:inline;white-space:pre-wrap;color:rgb(0,0,0);font-family:Calibri,Carlito,sans-serif;font-size:14.6667px;line-height:18.9933px;">Architectural <span id="E78" is="qowt-word-run" qowt-eid="E78" style="font-weight:normal;display:inline;white-space:pre-wrap;color:rgb(0,0,0);font-family:Calibri,Carlito,sans-serif;font-size:14.6667px;line-height:18.9933px;">I <span id="E79" is="qowt-word-run" qowt-eid="E79" style="font-weight:normal;display:inline;white-space:pre-wrap;color:rgb(0,0,0);font-family:Calibri,Carlito,sans-serif;font-size:14.6667px;line-height:18.9933px;">nnovation: <span id="E80" is="qowt-word-run" qowt-eid="E80" style="font-weight:normal;display:inline;white-space:pre-wrap;color:rgb(0,0,0);font-family:Calibri,Carlito,sans-serif;font-size:14.6667px;line-height:18.9933px;">A new product in which known components, based on existing technologies, are reconfigured in a novel way to attack new markets.

<p dir="ltr" style="line-height:1.295;margin-top:0pt;margin-bottom:8pt;"> Ex: Netflix 

<p dir="ltr" style="line-height:1.295;margin-top:0pt;margin-bottom:8pt;"><span style="color:rgb(0,0,0);font-family:Calibri,Carlito,sans-serif;font-size:14.6667px;font-weight:normal;line-height:18.9933px;white-space:pre-wrap;">2. Disruptive Innovation: An innovation that leverages new technologies to attack existing markets from the bottom up.

<p dir="ltr" style="line-height:1.295;margin-top:0pt;margin-bottom:8pt;">Ex: Wikipedia

<p dir="ltr" style="line-height:1.295;margin-top:0pt;margin-bottom:8pt;"><span style="color:rgb(0,0,0);font-family:Calibri,Carlito,sans-serif;font-size:14.6667px;font-weight:normal;line-height:18.9933px;white-space:pre-wrap;">3. Radical Innovation: An innovation that draws on novel methods or materials, is derived either from an entirely different knowledge base or from a recombination of the existing knowledge bases with a new stream of knowledge.

<p dir="ltr" style="line-height:1.295;margin-top:0pt;margin-bottom:8pt;">Ex: Coinbase

<p dir="ltr" style="line-height:1.295;margin-top:0pt;margin-bottom:8pt;"><span style="color:rgb(0,0,0);font-family:Calibri,Carlito,sans-serif;font-size:14.6667px;font-weight:normal;line-height:18.9933px;white-space:pre-wrap;">4. Incremental Innovation: An innovation that squarely builds on an established knowledge base and steadily improves an existing product or service.

<p dir="ltr" style="line-height:1.295;margin-top:0pt;margin-bottom:8pt;">Ex: Apple

Ecosystem