Chief Product Team 
What is the definition of product innovation, and what strategies should you know about it?
Continue reading to know more about the topic.
Product Innovation Definition
Product innovation is the process of improving or changing a product to increase its usability or accessibility. It is important for companies to focus on this process because it can provide their products with a competitive advantage over their competitors.
It also goes without saying that it can help them to stand out from the rest of their competitors.
The most common ways to do product innovation are by adding new features, redesigning, and creating new designs for their products, or changing their packaging.
However, it is important to note that the term product innovation is not just limited to the physical aspects of products. It may also refer to improving a service or modifying business models.
The term itself is broad enough that it can be applied to a wide range of areas. These include technology, arts, and business.
Product Innovation Strategies
Product innovation strategies can be categorized into two main categories: disruptive innovation and sustaining innovation.
Disruptive Innovation
Disruptive innovation focuses on coming up with entirely new products that will be different from their existing products.
They also set out to create new markets by introducing their products. Especially to people who have never used or even heard of the product before.
Disruptive innovations often lead to changes, thus disrupting an existing market in the long run. Examples of disruptive innovations are e-readers and smartphones that changed the way people read books and communicate with one another respectively.
Sustaining Innovation
Sustaining innovations are those that aim at improving existing products rather than coming up with completely new ones. The best example of this type of innovation is computer processors that get faster with each generation of chips they come out with.
But, they are still similar to each other in terms of what they do. They maintain their purpose while improving the quality and performance of their previous versions.
Innovation Strategy Example
How different companies implement product innovation strategies depends on what they want to achieve with these strategies in the first place.
Some companies use it as a way to maintain market share. Still, others use it as a way for them to expand their market share by reaching out to more customers in different markets where they have yet to be reached before.
But, regardless of what their goal is, product innovation is important for companies to come up with.
It is because it will help them to stay competitive in the market, and even gain a competitive advantage over their competitors.
The Bottom Line
Product innovation is important for companies to implement. It is because it will help them to stay competitive in the market, and even gain a competitive advantage over their competitors.
How about you? What is your opinion about product innovation? Share it with us by leaving a comment below.
