Callaghan Innovation

Type of innovation: Product

What’s a product?

What’s product innovation?

A product can be a tangible, physical good or a digital item, such as software or an app

Product innovation:

• addresses product functionality and performance, product systems and product design

• involves introducing an entirely new product, or making significant changes to a product offered in the marketplace (e.g. creating new features or new functions)

Type of innovation: Process

What’s a process?

What’s process innovation?

A process comprises the activities and operations that produce a business’s product and service offering.

Process innovation:

• involves developing and implementing  new or improved processes that enable organisations to operate more efficiently, reduce costs or enhance the quality of their products or services

• can involve technological-based innovation (e.g. developing a new production method or incorporating new equipment) or non-technological based innovation (e.g.introducing a new sales, marketing or pricing method)

• can involve a complete end-to-end process innovation, or may be focused on key steps or individual processes within a larger process

• can involve reconfiguring existing processes and equipment in new ways, finding new uses for existing processes and creating new value from these configurations

Type of innovation: Service

What’s a service?

What’s service innovation?

A service comprises the type of support and experience provided to customers at any point where they interact with a business e.g. to learn about, try, buy, receive, use, share, return and cancel products and services. 

A service can be the business’s core offering or an additional support to core product offering.

Service innovation:

• refers to introducing a completely new or improved service that a business provides

• can encompass new forms of customer support, maintenance plans, education and service policies

• may make a product easier to try, use and enjoy

• can help avoid and fix problems in the customer journey

• may elevate customer experiences so that customers stay loyal

Type of innovation: Business model

What’s a business model?

What’s business model innovation?

A business model describes how a company creates, sells, and delivers value to its customers.

Business model innovation:

• refers to introducing new or improved ways to create, deliver and capture value

• may involve changing the way products or services are sold, delivered, or priced

• can include developing new revenue streams through partnerships or other means