Product innovation is bringing change and development to an existing product to increase its utility. The product innovation process includes the development or improvement of products in a way that tries to solve problems for consumers, customers, companies, or society at large.
The increasing resolution of the smartphone’s camera is an example of innovation. The first electric vehicles with new batteries launched in the market can also be an example of innovation.
Why Is Product Innovation Important?
Innovation of new products that meet the needs of their consumers or create new demand for them builds a competitive advantage. Product Innovation allows companies to grow and receive higher profits. According to a McKinsey survey, 25% of the total revenue profits of a company come from the launch of new products.
Product Innovation Process Include The Following Factors
- Idea generation for new product
Suppose you want to launch a successful product; you need to make it a little exceptional and competitive compared to other products. The market is already flooded with thousands of gadgets. New product development includes a launch of a completely new product or changes in an existing product to match the standards of the market.
It helps to calculate the feasibility of the product being launched. Advocacy and screening will give a better idea of the benefits and problems of the products associated with the same. Investing in training and developing employees will give better outcomes. Also, transparent evaluation and feedback of the product will help the company to understand problems and deliver better solutions.
Experimentation includes generating new ideas based on feedback generated by screening and advocacy. It consists of the testing and sustainability of ideas for an industry for a specific period. For example, Amazon first tested its grocery services in a few parts of the U.S.A before opening its delivery options in Los Angeles, New York City, and San Diego.
Innovation brought by united teams towards a specific goal seems more intimidating than in solo. In fact, innovative work requires intelligence as well as a diverse talent capable of performing different kinds of tasks to provide an effective product to the market.
Excellent strategy and planning are required to make a truly innovative product. Plans should be well drafted and should include different scenarios that possess risks. A brief analysis of the market regarding demography and competition will be beneficial for a successful launch of the product. It is better if you avoid sticking to only one phase of the strategy; all parts of the plans require attention.
- Choosing the right people
People with various capabilities are best for the workforce and successful product innovation. Successful companies are aware that investing in training and developing their employees' skills benefit them. Employees should be mindful of what customers need in the final product. If you produce a product that is not valued and can’t be used by anyone, it will all be in vain.
Digitalization and product innovation allow you to stay in business and gain an advantage in a highly competitive market. It also enables your growth and long-term success. Product innovation isn’t a piece of cake, but by opting for innovation courses in India, you can easily seek knowledge. MIT ID Innovation offers such courses to help you with a better understanding of technology. Enroll with us and develop your skills.