The product of innovation in the form of new products and the process of introducing new technologies, equipment, and materials are the most employed in practice. Economical – the use of previously unused systems and forms of remuneration and methods of managing production costs; marketing – the development of new markets and ways of promotion; social – the use of previously unused methods of labor motivation; and environmental – the use of new technologies – the implementation of new technologies.
Reactive innovations emerge as a reaction to competitors’ actions and, like strategic ones, aim to increase a product’s or service’s competitiveness. Strategic innovations are generally promising in nature and are designed to ensure the competitiveness of an enterprise or organization; reactive innovations emerge as a reaction to competitors’ actions and, like strategic ones, aim to increase the competitiveness of a product or service. The categorization of breakthroughs described above is helpful for statistical accounting and positioning products in a competitive market, assessing your viability, developing a growth plan, and justifying management improvements.
In industry, it is customary to distinguish between two types of technological innovation – product and process:
It covers the introduction of technologically new or improved products:
A technologically new product (radical product innovation) is one whose technological characteristics like functional features, design, and additional operations. As well as the composition of the materials and components used) or intended use are fundamentally new or differ significantly from those of previously manufactured products with similar characteristics and uses. These breakthroughs can be based on entirely new technology or a combination of current technologies in their new application (including research and development results). Microprocessors and video cassette recorders are two examples of radical (fundamentally new) technologies. A type two innovation was the first portable cassette player, which integrated the critical concepts of tape recorders and micro ear loudspeakers.
A technologically improved product is a product, the quality or cost characteristics of which have been noticeably enhanced using more efficient components and materials, a partial change in one or several technical subsystems (for complex products).
This form of innovation is based on the employment of new manufacturing equipment, new methods of arranging the manufacturing process, a combination of these, and the use of research and development results. It entails the creation and execution of technologically advanced or significantly improved manufacturing procedures and product transfer methods. Typically, such innovations are intended to improve production efficiency or transfer products already in use in the company. Still, you can also use them to create and supply technologically new or improved items that cannot be produced or provided using traditional manufacturing techniques.
When a service’s qualities or usage methods are fundamentally new or considerably (substantively) improved in terms of technology, it is termed a technical innovation in the service sector. Technological innovation also refers to the employment of significantly enhanced methods for producing or transmitting services. The latter refers to equipment or production organization changes associated with the production or transfer of new or significantly improved services that cannot be produced or transferred using existing methods or with an increase in the efficiency of existing services manufacturing or exchange.
Organizational and managerial changes, including the transition to advanced management methods, the introduction of significantly changed organizational structures, and the implementation of new or very changed directions in the economic strategy of the enterprise. You may use new knowledge or technology in product innovations. They could also be founded on novel applications, current knowledge, and technology combinations. Both a good and services are referred to as “products.” Product innovation refers to introducing new goods and services and significant changes in the functional or consumer features of previously existing goods and services. We should consider innovation as a range of tools for solving specific issues, just like any other field. For the duration of the company’s existence, we do not rely on a single marketing approach or a single source of revenue. In the same way, we need to create a portfolio of innovative strategies for specific tasks.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.