The innovative approach of all businesses is the key to success. As I mentioned before in my blog, there are many diverse definitions of what innovation is or is not. The literature and authors are still not inconsistent about this area of knowledge. As an effect of this divagations, many criteria of possible division emerged.
In literature of this subject, we can find multiple typologies of innovations. The simplest dual divison distinguish 2 types of innovations – product innovation and service innovation.
Types of innovative approaches by subject criteria
The most common differentation known in literature is the distinction between product and service innovations. This division arose due to the tangible and intangible traits of innovations.
- Product innovations – change of physical, chemical or biological structure of existing products and services OR creation of completely new products. Usually considered in technological terms. Provides product’s upgrades or launch of new offers.
- Service innovation – the effect of implementing changes in providing services. Identifies by its intagibility, involvement of a human factor. wysokim wpływem czynników zewnętrznych i ludzkich oraz wynikającą z tego różnorodnością procesu świadczenia usługi. Service innovation may concern:
- New concept of service
- Introduction of a new technology
- New field of collaboration with customer
- New services-providing system
The basic difference between these two kinds of innovative approach is their tangible and intagible character, which prolongates the product lifecycle and protection. Product innovations can be easily protected by patents. In case of service innovations such protection is limited to some extent, however, they tent to be difficult to observed by a comptetition.
