ROLE AND BENEFITS OF INNOVATION IN IMPROVING PRODUCTS ,PROCESSES AND SERVICES Flashcards
Discussing the Benefits of innovation in the syllabus (Financial gain, Increased market share and Expansion of Global market presence)
Define innovation
The process of creating new ideas ,products and services that result in significant positive change or improvement
what is innovation all about ?
Innovation is about creating something new**, or improving on existing systems, products and processes. **
sources of ideas for innovation
1) Customer preferences
2) Customer, staff or supplier feedback
3) Competitor analysis
4) Sales
5) Market research
6) Product and quality data
why innovate ?
Competitive Advantage!
It is important to link it to Competitive advantage when doing questions on this
innovation can lead to:
- ** Increased Revenue and Profit **
- Business Survival or even business growth
- Increased exports
Increased employment in markets
- Greater efficiency (lower expenses)
- Improved skills and capabilities of businesses
- New ways of working (e.g. virtual work groups)
** Better management of environmental impact **
THIS THE ROLE OF INNOVATION WHEN improving PRODUCTS ,PROCESSES AND SERVICES
The role of innovation in improving… **Products **
-
Enhancing functionality:
new features or capabilities to meet evolving customer needs and preferences. - **Improving quality: **
refinement of product design, materials, and manufacturing processes to enhance durability, reliability, and performance. - Increasing efficiency:
development of more efficient production methods, reducing costs and enhancing value for customers.
- Increasing efficiency:
- Enhancing user experience: improving usability, ease of use, and user interface design to create more intuitive and enjoyable products.
The role of innovation in improving…PROCESSES
Streamlining operations: development of more efficient workflows and procedures, reducing redundancies and improving productivity.
Enhancing automation: facilitates the automation of repetitive tasks and processes, freeing up resources for higher-value activities and reducing the potential for errors.
Enhancing agility:
adapt quickly to changing market conditions, customer preferences, and technological advancements, enabling them to stay ahead of the competition.
Optimising resource allocation: identify opportunities to optimize resource allocation, such as capital, time, and talent, leading to cost savings and improved efficiency.
The role of innovation in improving… Services
Enhancing customer experience: development of new service features or improvements that meet customer needs and preferences more effectively.
**Increasing efficiency: **
streamlining of service delivery processes, reducing wait times, and enhancing overall efficiency.
The benefits of innovation for business,Including :
- Financial gain
- Expansion of global market presence
- Increased market share
What stops Businesses Innovating ?
1.Corporate culture that rejects change can also stifle investment in innovation.
2.innovation costs money**
Benefits for innovation in Financial Gain:
More sales:
Innovation may lead to increased income or a new income source through the capture of more market share or increase in sales volume
it may also prolong a product’s life cycle by delaying the onset of the decline stage. By adding features or improving quality and performance, customer demand can be maintained or increased.
**Cost Efficiencies: **
Process innovation may reduce waste and costs which also result in sustained profit. Innovation may involve a less expensive manufacturing process or substituting materials for higher quality options which decreases defects and product losses
no terminology needed just know how to explain these
Define Financial Gain
The increase in revenue or profit obtained by a company as a result of its operations,investments, or strategic decisions.
examples include :sales profits,return on investment and cost effiency
More sales(Financial Gain)
Innovation may lead to increased** income or a new income source through the capture of more market share or increase in sales volume**.
overall message (Financial Gain)
innovation may offer businesses** opportunities to increase their financial results through increased revenue and enhanced cost efficiency**
Cost efficiences (Finacial Gain)
Process innovation may reduce waste and costs which also result in sustained profit. Innovation may involve a** less expensive manufacturing process or substituting** materials for higher quality options which decreases defects and product losses.
