Product Innovation And Process Innovation

Background

This chapter discourses innovation and venture creation in entrepreneurship. The chapter describes skills and innovations in venture creation through which a typical entrepreneur can start and grow his business from the acquired skill and available resources. The allocation of resources by an entrepreneur marked with necessary capabilities is a matter of entrepreneurial vision, which mainly depends on the creativity of the entrepreneur. The first step to venturing into any enterprise is to have a vision. Vision is the ability to think about, or plan the future with great imagination and intelligence. Vision answers the question “What do I want to Create”? Vision is aspirational. Vision is essential to building something new and

These include product innovations, process innovations, marketing innovations and organisational innovations. Product innovations and process innovations are closely related to the concept of technological product innovation and technological process

This includes significant improvements in technical specifications, components and materials, incorporated software, user friendliness or other functional characteristics. Product innovations can utilise new knowledge or technologies, or can be based on new uses or combinations of existing knowledge or technologies. The term “product” is used to cover both goods and services. Product innovations include both the introduction of new goods and services and significant improvements in the functional or user characteristics of existing goods and services. New products are goods and services that differ significantly in their characteristics or intended uses from products previously produced by the firm. The first microprocessors and digital cameras were examples of new products using new technologies. The first portable MP3 player, which combined existing software standards with miniaturised hard-drive technology, was a new product combining existing technologies. The development of a new use for a product with only minor changes to its technical specifications is a product innovation. An example is the introduction of a new detergent using an existing chemical composition that was previously used as an intermediary for coating production only. Significant improvements to existing products can occur through changes in