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Product Innovation: Product Innovation And Strategic Logic

D. Rainey
Published 2005 · Engineering

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Innovation involves changes and improvements to technologies, products, processes, and services that result in positive contributions for customers and other constituents of business organizations. An innovation is a creative new solution to the prevailing conditions and trends, and fulfills the expressed and latent needs and wants of customers and stakeholders. Innovation management involves the means, mechanisms, and methods for leading change through developing new technologies, products, and processes. It includes changes in business models and organizational structure. Innovation management is imperative for improving product portfolios, enhancing and developing new products, and achieving customer and stakeholder satisfaction in the fast-paced world of globalization, technological change, and pressures from the business environment. Innovation is pivotal for sustaining the prosperity of most organizations. If cash flow is the life-blood of a business enterprise, then innovation is the prescription for reinvigorating the organization to compete more successfully in a demanding world. Product innovation concentrates on improving the strategic position and product-delivery capabilities of the organization through creativity and leadership. Product innovation includes several essential aspects. Examining the needs for new products, processes, and services. Determining the proper direction and fit for new products. Establishing the appropriate game plan of the entire management system for developing and commercializing new products. Selecting new-product opportunities for investment. Enhancing the organizational capabilities to create successful new products. Creating the new product and executing the new-product development (NPD) program. Product innovation is a dynamic construct requiring managerial and organizational leadership and skills; it is a far-reaching term.
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