Product Innovation Vs Process Innovation

Jun 10 Posted By Ateeq Rehman | 0 comment

 There are two kinds of innovations, product related innovation and process related innovation. Today I am going to explain what are the fundamental differences between both of them with the help of real life examples and how new innovators and entrepreneurs can better understand what type of innovation they actually require.


June 29, 2007 was the date when first ever iPhone was launched and it was technology beyond anyone’s imagination. The first iPhone was a marvel of new innovation and the product was so beyond its time that other competitors couldn’t even keep up with the technology and biggest cellphone maker of that tine NOKIA had to sell its operations to Microsoft because it was unable to keep up with the technological innovation the Apple has brought. At that time the new innovation was product related and every company in cellphone business had to adapt and evolve to new trends set by Apple. It took quite a while for other competitors to catchup with the technology of Apple and son after that process of incremental improvements started and haven’t stopped yet. This all was related to product innovation and Apple has clearly defined itself as a market leader in product innovation.

After that initial radical product of iPhone the Apple has to continuously evolve itself as to sustain itself as a market leader and to achieve that not only product innovation was necessary but process innovation came into play. Soon after initial product launch the apple has launched various services like app store and cloud storage to keep its edge over others but soon Google launched its mobile operating system known as Android where no new product innovation was happening but the innovation was totally based on service side and streamlined the process which shaped the mobile industry we know now a days. The main concept behind Android was that it is an open source platform where any one can modify their devices to their hearts content a feature which was missing from apple to this date and soon after that android started process innovation trend where no value adding process are eliminated with the passage of time and new value adding process are introduced into the system. Granted the product innovation and incremental innovation played a vital role in the whole process but the whole focus was towards the process innovation. Soon after that Apple catches up to the Android process innovation and introduces its own process innovation.
To this date apple products with much lower hardware on paper out preform the best and the best devices running android because of process integration done within the operating system by Apple so much so that devices running at half of the power can compete with devices running full power by the competitors.
We at IICIE pay close attention to product innovation as well as process innovation. During the incubation period of all new startups a complete evaluation of their ideas are conducted to better prepare them for the commercialization oriented results.