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Product Innovation

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What is Innovation? (link to MOSTI)

Malaysia is currently transforming towards new phase of development of becoming a developed nation by year 2020. Given the changing domestic and global economic landscape, initiatives to enhance national competitiveness and resilience will be given priority. One major thrust of the country’s New Economic Model (NEM) is to move the economy up the value chain, and inherent to this is the need to develop more innovation driven enterprises. In order to inspire innovation, something more than the generation of a creative thought or insight is required: the insight must be put into action to make a genuine and lasting difference, resulting for example in new or altered business processes within the organization, or changes in the products and services provided.

Innovation typically involves creativity, but is not identical to it: innovation involves acting on the creative ideas to make some specific and tangible difference in the domain in which the innovation occurs.

Product Innovation
This involves a good or service that is new or significantly improved. This includes significant improvements in technical specifications, components and materials, incorporated software, user friendliness or other functional characteristics. In other terms, a product innovation can be a new or significantly improved process, changes in design of established products, or use of new materials or components in the manufacture of established products

Process Innovation
Process innovation involves a new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and/or software; this can for example be a new or significantly improved pedagogy of business.

Marketing Innovation
Marketing innovation involves a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing. It could also be a new way of pricing the product or service or a new admission strategy.

Organisational Innovation
Organisational innovation involves introducing a new organisational method in the firm’s business practices, workplace organisation or external relations.  This can for example be a new way organization of work between organisational changes in the administrative area.

 

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