Chief Product Team 
What is Product Innovation within a business? How does a business benefit from Product Innovation? To know more about these, just keep on reading the article until the end.
What Is Product Innovation Within a Business?
Product innovation refers to those new products that are developed by a company and introduced to the market.
Product innovation generally refers to new products or services that have been developed in some way. This may be an improvement of existing products or a new concept. The word “innovation” comes from the Latin word innovation, which means “to renew” or “to remake.” In essence, new products refer to those that have been renewed or remade, whether in a minor or significant way.
Products can be improved in different ways. They can be modified in terms of size, shape, color, smell, taste, packaging, and so on. One very common example is when companies modify their existing products by making them smaller or bigger. This is often done by many foods and beverage companies so that they can cater to different consumer needs and preferences. For example, companies in the drinks industry often provide smaller sizes of their drinks so that consumers can easily bring them along on long road trips or when they are traveling overseas.
They also provide bigger sizes so that customers who are living at home can have them available at home as well. You will often see these bigger sizes at convenience stores and supermarkets. It is also not uncommon for you to see smaller-sized food items appearing on supermarket shelves today like smaller-sized fruits such as bananas and apples. These are just a few examples of how a company can modify its existing products. But, there are many more ways by which this can be done!
Top 3 Benefits of Product Innovation Within a Business
1. Innovation Can Lead to Increased Sales
When a company develops and markets a new product, this leads to increased sales of the new product. For example, when a company develops a new type of beverage. So, leads to an increase in sales of the new beverage as compared to the existing ones. Similarly, when a company develops and markets a new smartphone, this increases sales of the smartphone as compared to existing smartphones that are currently available in the market. Hence, product innovation can lead to increased sales of a company’s products or services.
2. Innovation Can Lead to Increased Profits
Product innovation can also lead to increased profits for companies. Because they can sell more products or services than they did before they developed and marketed their new products or services. For example, if you compare the profit figures for a company that produces one type of drink versus the profit figures for another company that produces two types of drinks, you will notice that the latter has higher profit figures than the former does. This is because more people buy their drink as compared with their competitor’s drink. So, this means that their sales revenue is higher as well! Hence, we can conclude that product innovation can lead to increased profits for companies as well!
3. Innovation Can Lead to Increased Market Share
Product innovation can also lead to increased market share for companies. Because it allows them to expand into different market segments. Thus, reach out to more customers than they did before they developed and marketed their new products or services. Take Apple Inc., for example – it has expanded its business into different markets such as smartphones and tablets since it launched its first iPhone back in 2007. It is now competing strongly against companies like Samsung and HTC who have been around for much longer than Apple Inc., but Apple Inc. has been able to gain significant market share from these companies nonetheless! Hence, we can conclude that product innovation can also lead to increased market share for companies!
