Running head: INNOVATION CONCEPTS 1

Innovation Concepts

Name

Institution
INNOVATION CONCEPTS 2

PART 1:

Innovation Concepts

Mind Map

Product innovation
Importance of innovation management process
 What is available?

 Customer needs

 Gap

 Technology

 Ideas

 Testing new
products and
commercialization

(Grunert & Traill,

Position innovation
2012). Existing position
Market needs
Changes required
Implementation
(Tidd, 2013). 
INNOVATION CONCEPTS 3

Process Innovation

Process innovation takes place in five key steps namely define, measure, analyze,

improve, and control (Humanitarian Innovation Fund, 2017). The first step entails defining what

production or distribution processes exist. The second step measures the effectiveness of the used

process against the innovation concepts available. The third step analyzes the benefits of the

current process and compares them to those that would have been realized if new technology was

used. The improve step hatches the conceptualized ideas to realize the anticipated benefits. The

last step seeks to monitor the process to ensure it is in line with the outlined implementation

steps
INNOVATION CONCEPTS 4

Product Innovation

What is available in the market?

What do the customers need?

Is there a gap between what is needed and what is there?

What technology is available?

Are there new ideas?

Testing the concept

New product

Commercialization

Product innovation is founded on the theory of inventive problem solving which is

focused on logic and factual data. The company has to identify facts in the market and establish

gaps the new product will fill (Grunert & Traill, 2012). Through this theory, entrepreneurs are

able to predict the success of the new product, as they already have an image of what the market

needs.
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Position Innovation

What is the existing position of a product?

How would the market want the product to be?

What changes must made?

Implement the changes

Position innovation is influenced by the positioning theory which purports that for a

commodity to garner priority over that of the competitors, it must occupy the market edge.

Position theory is concerned with the use of words to influence customers (Artto, Martinsuo,

Dietrich, & Kujala, 2008). Therefore, entrepreneurs should make use of persuasive words for the

product to succeed.
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PART 2:
Annotated Bibliography

Author/s Academic Year Context/scope and relevance of the

journal/text book article/concepts discussed
Artto, K., International Journal 2008 The journal discusses the strategy types
Martinsuo, M., of Managing involved in project management. It outlines
Dietrich, P., & Projects in Business four types of innovation that are necessary
Kujala, J. for a company to compete favorably in the
markets. The authors conclude that a
projects’ autonomy and the complexity of
the project are two important aspects that
have an influence on the project strategy.
Based on the two concepts, the journal
derives four kinds of alternative positions,
which projects can focus on. They include
parent’s subsidiary and independent projects
that take place in a holder’s environment
that is not intricate and projects with feeble
and self-directed positions in a multifaceted
stakeholder setting.
Grunert, K. G., & Springer Science & 2012 The authors of the book argue that
Traill, B. Business Media innovation makes life interesting and
provides a means of survival. The book
focuses on products and process innovation
in the food industry. It outlines the major
steps in products and process innovation that
help an industry realize a competitive edge.
In addition, the authors identify market
orientation, customer acceptance, and
overall performance as the drivers of
innovation. If the consumers do not embrace
the new product, the author claims that the
INNOVATION CONCEPTS 7

innovation failed and it can be assumed that

it never happened. Furthermore, innovation
should trigger economic advancement in a
company. Hence, an organization can not be
said to be innovative if it is not expanding
its operations.
Hilman, H., & World Journal of 2015 The journal details the innovation strategies
Kaliappen, N. Entrepreneurship, that amplify business performance. In
(2015). Management and addition, the journal discusses how
Sustainable innovation can be used to realize sustainable
Development development. The results indicated that there
is a positive link between product
innovation, process innovation, and
performance. However, it was noted that
process innovation has a greater influence
on performance than product innovation. In
addition, it was noted that the size of an
organization has an influence on the
innovation efforts, which is reflected in
organizational performance.
Humanitarian Innovation concepts 2017 The website addresses the major concepts
Innovation Fund Website surrounding the four aspects of innovation
namely the product innovation, process
innovation, paradigm innovation, and
position innovation. The website concludes
that for a firm to realize business success, it
must be considerate of the four aspects of
innovation. Product innovation is linked to
the need of changing the products in the
market or providing new ones. Process
innovation is described as the act of
changing the way products/services are
INNOVATION CONCEPTS 8

produced or distributed. Position innovation

is concerned with reshaping the market
perception of a specific brand or service
while paradigm innovation shapes what an
organization is about.
Ilyinsky V., & St. Petersburg State 2016 The journal brings out the necessity to
Yastrebov, A. P. Polytechnical ensure correspondence between various
University Journal of innovation types and the basic values of the
Economics organization. It points out six innovation
types which include product innovation,
process innovation, position innovation,
paradigm innovation, incremental
innovation, and radical innovation. The
journal highlights that for a company to be
successful, it must balance between all these
aspects of innovation.
Linton, J. D., & Technological 2008 The book presents a presumption of
Walsh, S. T. Forecasting and modernism for process-based innovations.
Social Change The author highlights the need for any
organization to engage in processes that care
about the environment, as it is vital to
achieve sustainable development.
Löfsten, H. European Journal of 2014 The journal discusses product modernism
Innovation processes and the trade-off between
Management merchandise innovation presentation and
industry recital. It concludes that there is a
direct connection between merchandise
novelty and company performance.
Innovation triggers product performance,
which directly reflects on the business
performance. In addition, innovation should
be based on the needs of the consumers
INNOVATION CONCEPTS 9

because if the new product do not satisfy the

clients, purchase rates will be minimal,
which will be a loss to the company.
Overall, J. Academy of 2015 The importance of innovative culture is
Entrepreneurship emphasized by the author where it provides
Journal positive benefits for the organization,
especially when the company seeks to be
innovative. Factors such as employee
relationships, knowledge management, and
strong leadership will support creativity
within the firm, which can result in
improved performance and allowing the
firm to compete largely with other
competitors in the market.
Shakeel, S. J., Ali International Journal 2014 The authors assessed product modernism
Brah, S., Zahoor of Productivity and and buyer-supplier affiliation in Pakistani
Hassan, S., & Performance industries. The results indicate that product
Kannan, V. R. Management innovation improves the quality of the
relationship between the buyers and the
suppliers; the buyers feel that their needs are
met, which increases the suppliers profits.
Where there was no innovative actions, the
consumers felt that they were not cared for,
which reduced their purchase activities. In
the cases where the suppliers were
concerned of what the consumer wants,
innovation was high and so was the rate of
consumer satisfaction.
Tidd, J., & West Sussex, 2013 The book focuses on how innovation can be
Bessant, J. England: Wiley managed. It sums up that integrating
technology in the market and production
result to increased efficiency as the products
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produced are personalized to the needs of

the market. As a result, the authors claim
that innovation improves market
performance. In addition, the book
recognizes innovation as the driver for new
products and services, which are more
tailored to meet the consumer needs. The
authors term collaboration as the major
source of innovation networks. Additionally,
innovation seems to trigger new businesses,
ventures, and projects.

PART 3:
Summary

Introduction

Innovation is a necessary factor in promoting business performance. It analyses the needs

of consumers and ensures that the available goods and services are satisfactory (Artto et al.,

2008). In addition, innovation ensures that there is a working bond between the dealers and the

buyers; the suppliers seek to know what the market needs and produce what is satisfactory. As a

result, the consumers are provided with quality commodities which strengthen the bond with the

producers (Löfsten, 2014).

Product Innovation

Product innovation changes the things a company offers or their quality (Shakeel et al.,

2014). It undergoes five major steps which can be detailed in the form of questions. The first

question a producer must ask himself, “Is what is available in the market?” This question allows

the producer to research on what competitors are providing. The second question is, “What does

the consumer need?” The question requires the producer to interact with the consumers and listen
INNOVATION CONCEPTS 11

to their perceptions and what they really want to satisfy their needs. The third question is, “Is

there a gap between what is there and what is needed?” In this question, the producer analyses

the needs of the clients and compares them to what is available in the market. The difference

between the two is the identified gap. The fourth question is, “Is there available technology?”

(Tidd & Bessant, 2013). In this question, the producer seeks to find out whether there are

resources that would help him bridge the gap between what the customers need and what the

market provides. The last step is constructing the bridge where the producer develops the product

that appeals to the expressed consumer needs.

Process Innovation

Process innovation seeks to change the ways in which products and services are created

or delivered (Grunert & Traill, 2012). It entails five stages which are defining, measuring,

analyzing, improving, and controling. The five stages are an endless cycle. Defining entails

studying the existing production or delivery systems and how they affect the market perception.

Measuring analyses the strengths and weaknesses of the existing systems, while analyzing looks

at the implications of the identified strengths and failures. The entrepreneur then thinks of what

can be done to improve the existing systems. The major guiding question is, “How would

technology be of use in the manufacturing and delivery?” Finally, the businessperson must

outline control measures to ensure the identified changes will be implemented. Control also

entails monitoring progress towards realization of the anticipated goals (Linton & Walsh, 2008).

This final step leads to the first step and the cycle is continuous.

Position Innovation

Position modernism modifies the situation that commodities are enclosed and

communicated (Humanitarian Innovation Fund, 2017). It seeks to raise the product or service to
INNOVATION CONCEPTS 12

a higher point in order to survive the stiff competition in the market. Position innovation would

be attained through four major steps. The first step analyses the existing position of the product

in the market. If it is not satisfactory or if it needs to be improved further, the second stage is

considered. In the second step, the producer identifies the projected position for the product

which is guided by question like “Where would I want the product to be?” The third step is

identifying the changes or initiatives that must be made in order to place the product in the

aspired position. In this stage, the producer must determine the communication media outlets that

would create awareness of the product to the target group. The forth step entails implementation.

The producer steps out to ensure that the product gets to the aspired position.

Conclusion

Therefore, innovation takes place in all aspects of marketing starting from production, to

delivery, to positioning it in the market and improving the perception of the market towards a

product. Innovation seeks to improve the quality of a product, how it is produced and delivered

to its consumers, and how it is perceived by the customers. Successful entrepreneurs must

correspond between all the types of innovation to ensure customer satisfaction (Ilyinsky &

Yastrebov, 2016). Therefore, innovation is integral to realizing business success (Hilman &

Kaliappen, 2015). Entrepreneurs should manage innovation in various aspects to establish and

maintain a competitive edge in the market.

INNOVATION CONCEPTS 13

References

Artto, K., Martinsuo, M., Dietrich, P., & Kujala, J. (2008). Project strategy: Strategy types and

their contents in innovation projects. International Journal of Managing Projects in

Business, 1(1), 49-70.

Grunert, K. G., & Traill, B. (2012). Products and process innovation in the food industry.

Springer Science & Business Media.

Hilman, H., & Kaliappen, N. (2015). Innovation strategies and performance: Are they truly

linked? World Journal of Entrepreneurship, Management and Sustainable Development,

11(1), 48-63.

Humanitarian Innovation Fund. (2017). Types of innovation: The 4Ps. Retrieved from

www.elrha.org/hif/innovation-resource--hub/innovation-explained/types-humanitarian-

innovation/

Ilyinsky V., & Yastrebov, A. P. (2016). The correspondence between various innovation types

and the basic values of the organization. St. Petersburg State Polytechnical University

Journal.Economics, 3.

Linton, J. D., & Walsh, S. T. (2008). A theory of innovation for process-based innovations such

as nanotechnology. Technological Forecasting and Social Change, 75(5), 583-594.

Löfsten, H. (2014). Product innovation processes and the trade-off between product innovation

performance and business performance. European Journal of Innovation Management,

17(1), 61-84.

Overall, J. (2015). A conceptual framework of innovation and performance: The importance of

leadership, relationship quality, and knowledge management. Academy of

Entrepreneurship Journal, 21(2), 41-54.

INNOVATION CONCEPTS 14

Shakeel, S. J., Ali Brah, S., Zahoor Hassan, S., & Kannan, V.,R. (2014). An examination of

product innovation and buyer-supplier relationship in pakistani firms. International

Journal of Productivity and Performance Management, 63(8), 1031-1045.

Tidd, J., & Bessant, J. (2013). Managing innovation: Integrating technological, market and

organizational change (5th ed.). West Sussex, England: Wiley.