Ārohia Innovation Trailblazer Grant

Product, process, service, business model

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




Updated: 19 May 2023