TEKNOLOJİ VE YENİLİK YÖNETİMİ

Product versus process innovation

Radical versus incremental innovation

Competence-enhancing versuscompetence-destroying innovation

Architectural versus component (modular)innovation

New processes may lead to the introductionof new products/services,

New products/services may lead to theintroduction of new processes,

A product innovation for one companymay simultaneously be a process innovation for another.

• An innovation is considered as competence-enhancing when it builds up on an existing technology using the organisation’s existing knowledge base and competencies.
• An innovation is considered as competence-destroying when it replaces a technology, and therefore renders the organisation’s competencies obsolete.
• Competence-destroying innovations render an organisation’s existing knowledge base and competencies obsolete.

Major Product Improvements:

Jet --> turbofan

LSI --> VSLI semiconductors

Mechanical --> electric typewriters

Nonreturnable --> returnable bottles

Product Substitution:

Vacuum tubes transistors
Steam diesel locomotives
Piston jet engines
Records compact disks
Punched paper automatic control machine tooling

Discrete integrated circuits

Open closed steel auto bodies

continuous (linear improvement of value acquired by the customer)

based on old technology

dominant design unchanged

does not lead to a paradigm shift

implies a low level of uncertainty

improvement of existing characteristics

existing organization and qualifications are sufficient

the result of a rational response or necessity

driven by market pull (important in the advanced stage of technology)

Organizations that focus on productinnovation should concentrate on new product development or improvement of the existing technologies while organizations launching new organizational methods or techniques as process innovation should focus on knowledge and management culture. In other words, when product innovation may include new product offerings or improvements to existing products as an outcome, process innovation involves creating or improving a method, technique, and developments in the processes or systems.

Process innovation is known as new factors(systems, equipment, techniques, and human resources) introduced in an organization to increase product quality, improve methods of production, or reduce production costs