1.3.8
Innovation
Innovation
Innovation
Businesses are under pressure to innovate. Innovation can be approached in two ways: product innovation and process innovation.


Innovation
Innovation
- Innovation is the development of a new idea which leads to the production of a new product or service which can be sold.
- For example, Dyson developed the world’s first bag-less vacuum because of its innovative approach to business.


Pressures for innovation
Pressures for innovation
- Social changes may increase the demand for innovative and advanced products to replace current products.
- Competition may increase a business’ focus on innovation as competitors seek to develop new products and services which will attract customers.


Product innovation
Product innovation
- Product innovation involves the development of new products which will be offered for sale to customers.
- For example, the development of new camera technology which improves the iPhone is an example of product innovation.


Process innovation
Process innovation
- Process innovation involves improving the process of manufacturing or offering a product or service for sale to customers to add value, decrease costs or improve efficiency.
- For example, the development of a new factory production line which improves the production of cars is process innovation.


Advantages of innovation
Advantages of innovation
- Innovation allows businesses to improve the products in its portfolio which can increase market share, sales revenue, and profit.
- Innovation allows a business to improve its processes which can increase efficiency and therefore competitiveness.
- Innovation allows businesses to develop a unique selling point which can improve competitiveness and customer loyalty.
1Exploring Business
1.1Features of Business Organisations
1.2Organisation of Businesses
1.3Business Environment
1.3.1External Influences
1.3.2Political & Legal Change
1.3.3Economic Environment
1.3.4Social & Technological Environment
1.3.5Lifestyle & Technological Environment
1.3.6Corporate Social Responsibility
1.3.7The Competitive Environment
1.3.8Innovation
1.3.9Risk & Uncertainty
1.3.10Porter's Five Forces
1.3.11SWOT Analysis
2Marketing Campaigns
2.1Marketing
3Business Finance
3.1Sources of Finance
3.2Financial Planning
3.3Financial Statements
4International Business
4.1Globalisation
4.2International Business
4.3International Economic Environment
4.4Factors Affecting International Business
5Principles of Management
5.1Management & Leadership
5.2Theories of Motivation
6Business Decision Making
6.1Business Principles & Practices
6.2Quality Management
6.3Human Resources
6.4Documents & Business Decisions
Jump to other topics
1Exploring Business
1.1Features of Business Organisations
1.2Organisation of Businesses
1.3Business Environment
1.3.1External Influences
1.3.2Political & Legal Change
1.3.3Economic Environment
1.3.4Social & Technological Environment
1.3.5Lifestyle & Technological Environment
1.3.6Corporate Social Responsibility
1.3.7The Competitive Environment
1.3.8Innovation
1.3.9Risk & Uncertainty
1.3.10Porter's Five Forces
1.3.11SWOT Analysis
2Marketing Campaigns
2.1Marketing
3Business Finance
3.1Sources of Finance
3.2Financial Planning
3.3Financial Statements
4International Business
4.1Globalisation
4.2International Business
4.3International Economic Environment
4.4Factors Affecting International Business
5Principles of Management
5.1Management & Leadership
5.2Theories of Motivation
6Business Decision Making
6.1Business Principles & Practices
6.2Quality Management
6.3Human Resources
6.4Documents & Business Decisions
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