Innovation

Question 1

What is innovation?

Answer 1

Innovation is about putting a new idea or approach into action. It is developing features of products that already exist.

Question 2

What is the difference between invention and innovation?

Answer 2

Invention is the formulation of new ideas for products or processes.

whereas

Innovation is the practical application of new inventions into marketable products or services.

Question 3

What are the two types of innovation?

Answer 3

Product innovation and process innovation.

Question 4

What is product innovation?

Answer 4

Launching new or improved products or services onto the market.

Question 5

What is process innovation?

Answer 5

Finding better or more efficient ways of producing existing products or delivering existing services.

Question 6

What are the benefits of product innovation?

Answer 6

• higher prices and profitability
• added value
• customer loyalty
• enhanced reputation
• public relations
• increased market share

Question 7

What are the benefits of process innovation?

Answer 7

• reduced costs
• improved quality
• more responsive customer service
• greater flexibility
• higher profits