Process versus Product Innovation

Companies are increasingly engage in innovative activities. However, not all innovations are the same. Process innovation deals with innovating the way we do things in an organization. For example, it is about innovating the way we buy, sell, manufacture, manage, and communicate, etc. in a company. On the other hand, product innovation deals with innovating the things that we offer to our customers such as the new products and services that we offer to them. In terms of their acceptance, process innovation needs to be accepted internally, the success of product innovation depends on several external factors such as competition and customer reactions. And, because compared to the internal factors the external factors more uncertain and risky, compared to process innovation, product innovation is more uncertain, risky, challenging, and rewarding…and of course, more interesting and exciting (Ozer, 1999; Ozer &Cebeci, 2010; Ozer & Vogel, 2015; Ozer & Zhang, 2015). This study highlights the differences between these two types of innovation.