Innovation process

Innovation process
See also
Process of innovation Opportunity analysis Market maturity New product development Product development strategy Innovation Innovation management Value innovation Methods of restructuring Corporate innovation

Innovation process is complex phenomenon of dissemination of new ideas, technical and practical application, accompanied by specific economic and social effects. Innovation process includes all phases of technological change, invention (idea), innovation and diffusion (dissemination).

Product innovation process

The innovation process – can be linked to the life cycle of the product, which is made up of following stages: introduction, growth, maturity, decline, withdrawal. Product life cycle, especially in the first phase (introduction of a new product on the market) includes final results of innovation process performed in company. Prior to the introduction of a new product on the market, company has to design and develop it in process of innovation. It consists of:

The testing phase, where you need to be searching for new services, ideas, products and information
The development phase in which you are improving existing services, ideas, products and information
Designing which means translating requirements into understandable descriptions, that are later used in the manufacturing processes
The final step is implementation which describes the introduction of services and products in the market

Product Life Cycle

Product Life Cycle can be described as the progression of a product throughout its life cycle. There are four stages of a product. They include, Introduction to the market, Growth, Maturity, and finally, Decline.

The Introduction Stages describes the moment when a company reveals their product to the audience. In the beginning, sales are relatively low because the product doesn't have much recognition. Costs to launch the product can be very high-research and development, market analysis, consumer testing is a must to introduce a product.
The next stage - growth, usually is identified by strong progress in sales and profits. By the promotion plan, customers are encouraged to purchase the product. As the company gain benefit from the economies of scale in production, the profit margins along with the amount of profit will rise. At this moment most companies invest money in marketing, promotional activities to take as big as possible advantage from the growth stage.
This stage of the cycle a product is stable and the goal for the producer is to control the market share they developed. Only a few buyers are new, most of them are repeat buyers. In this stage competition is much stronger, understandably, that effect in aggressive marketing. Businesses must invest carefully in any promotional and pricing programs they undertake. Companies should also consider development of their product to gain a competitive advantage.
The last is Decline Stage at this moment customers go toward, look for other products and sales decrease. Competition is growing in strength, weaker businesses are leaving the market. Rest of competitors are trying to make their products more interesting or gain some profit by moving to cheaper markets or switching production methods to less-expensive. Successful actions benefit in growing sales, otherwise, sales stabilize or start to decrease