Product innovation refers to the development and introduction of a product or service that significantly improves upon existing offerings, often by a factor of 10x or more. While many products are developed to stand out in a crowded market, product innovation may aim to completely disrupt the market and replace existing products with something new. This type of innovation is rare and can be challenging to achieve, as it requires a significant level of creativity and innovation. The following are common types of product innovation.
Time
Reducing time consumption including things that improve productivity or represent a customer convenience. For example, software that reduces the time for an interior decorator to produce a floor plan.
Efficiency
Reducing the inputs required to achieve a goal. For example, it currently costs around $50,000 a pound to launch things into orbit. It is believed that this can be reduced considerably.
Cost
Reducing the cost of products and services. For example, the cost per watt of solar panel modules dropped from around $75 in 1974 to less than $0.50 by 2020.
Performance
The performance of products and services as measured by a figure of merit. For example, the speed of computers has roughly doubled every two years since 1975.
Quality
Leaps forward in the quality of products in areas such as availability, durability and reliability.
Experience
The product experience including intangible elements such as concepts, feelings, taste, sight, sound, touch and smell.
Risk
Reducing risks such as improving the safety or sustainability of products.
