Product and Process Innovation Comparison

This assignment examines the concepts of product and process innovation, outlining their distinct characteristics and impacts on businesses. It delves into how each model drives value creation and addresses customer needs. The analysis emphasizes the importance of understanding both product and process innovation for achieving sustainable business growth.

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TECHNOLOGY AND CHANGE
Name:
Instructor:
Course
Course
Institution:
City and State:
Date:

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Contents
Section 1 – The interview............................................................................................................................2
Introduction.............................................................................................................................................2
Why bob Tisdall?....................................................................................................................................2
Insights....................................................................................................................................................3
Things to do differently after interview...................................................................................................4
Advice to the entrepreneur.......................................................................................................................4
Section 2 – reflection and planning.............................................................................................................4
Reflection................................................................................................................................................4
Planning...................................................................................................................................................7
Specific................................................................................................................................................7
Measurable..........................................................................................................................................8
Aligned................................................................................................................................................9
Realistic...............................................................................................................................................9
Time-bound.........................................................................................................................................9
Section 3....................................................................................................................................................10
Innovation models.................................................................................................................................10
Technology sector.................................................................................................................................11
Product innovation.................................................................................................................................11
Process innovation.................................................................................................................................12

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Section 1 – The interview
Introduction
The interview which is the subject of this paper was conducted with Bob Tisdall, one of
the two owners of Dialog Information Technology, and the Executive director since 1987.
Tisdall is one of the most respected voices in Australian technology circles, a reputation
confirmed by his award of life membership to the Australian Computer Society, ACS. The
interview covered several fields, including entrepreneurship, the pace of technological advances
in business today, challenges and opportunities, and the importance of innovation.
Why bob Tisdall?
The reasons for selecting Tisdall for the interview were several. For starters, he was
available, though the interview had been pursued for more than three months before it was
finally granted. Tisdall is, as indicated above, one of the most influential figures in Australian
technology discourse. Therefore, it would have been natural for him to have been selected,
seeing that, as a person who has been involved In the business for the better part of 40 years, he
has an encyclopedic knowledge of the market and the challenges or opportunities present today
and in the future.
Tisdall is an owner at Dialog, one of the largest technology companies in Melbourne and
Australia. In this position, it is able to offer a broad range of services to various clients in and
around Australia. Tisdall, as the Executive director, is intimately involved in the day to day
running of the business. His position and approach to operations at Dialog gives him a unique
perspective on the industry, something which the interview sought to exploit.

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Insights
The interview was an eye-opening experience and eek into the world of managing
innovation, and a business which needs to change regularly to survive and maintain its market
share. Tisdall quoted prominent voices in the industry in remarking that while it was thought
only technology companies need to innovate, it was now a quality which most businesses had
had to adopt. The mantra was “innovate or die.” Failure to sufficiently innovate would lead to the
quick demise of a company. This is because companies with better products would soon come
into the market. Existing products would stop meeting the needs of modern businesses, thereby
being discarded.
Innovation was however not an easy thing for any business to deliver on. It required an
enabling environment, including an organizational culture which fostered, rather than inhibited,
independent thought and creativity. The director alluded to the necessary ingredients for
innovation - Competence, strategy, and management. The people in the institution needed to
have the necessary skills and knowledge to innovate. It was also important to have a strategy
which drove innovation. Such an approach places emphasis on creative new ways of doing
things, rather than continually implementing existing ideas and products. Thirdly, the
management of creativity and innovation was crucial in fostering creativity. Creativity needs to
be rewarded. Unorthodox ideas should not just be brushed aside, but be interrogated to find out
whether they are applicable in the business environment.
Things to do differently after interview
Following the discussion, I have come up with a set of things which will be done
differently to attain excellence. For instance, the change should be treated as a welcome
eventuality in business. Business management should be geared towards dealing with change,

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rather than avoiding it and the uncertainty it typically brings along. I will strive to create a
culture of innovation in my career, so that people understand the importance of innovation, and
embrace it.
Advice to the entrepreneur
It may be difficult to offer Tisdall anything new which he may not have heard now, but
the advice to give would be that he should tap into the enthusiasm and skills which the young
people present. His organization should look to tap more into diversity – in age, culture and even
gender, so as to build an even stronger organization.
Date of Interview:
Length 50 minutes
Format: in person
Section 2 – reflection and planning
Reflection
In assessing my capabilities in innovation, I came up with the necessary traits that are
required in innovation, as well as how these features and resources are then applied to achieve
sustainable innovation required to building a competitive advantage. One of the most important
is competence. Competence in this case, and as characterized by Tisdall, refers to the ability of a
business or individual to bring together the necessary skills and knowledge required for
innovation. To innovate, or make something better, there is a need first to understand not just
how it is made, but how it works, and the needs it satisfies within the organization and for the
customers. Having this knowledge then requires the individual to have the skills necessary to
study it and pinpoint areas where, if done or made differently, would make it better.

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In my opinion, I have the competence required to be a good innovator. In my line of
study and expected future career, I believe my academic background and other exposure has
given me the necessary aptitude to understand how the industry works, and how specific parts of
the whole can be tweaked to make the whole work better. At the same time, understanding how
the industry works, and the needs it satisfies in the market makes it possible to regularly come up
with newer products which can better meet demand and needs of the market, while creating a
new competitive advantage for the organization.
To be better competent, it is necessary to improve continually. Tisdall refers to this as the
Kaizen principle. The principle is Japanese in origin, meaning that the individual or organization
constantly strives to be better. In this line, I intend to continually develop my knowledge of the
relevant things needed for innovation, so that I can improve existing innovations, making sure
that market needs are met better, and beating off any competition to the organization.
The strategy is the second ingredient in innovation. It refers to the plans that an individual
or an organization has put in place so that it can better achieve its goals. The strategy is a long-
term endeavor, which requires concentration and resources to complete. The right strategy is
made up of tactics which add value to the eventual realization of the plan, rather than acting as
sideshows or distractions. As with competence, it is necessary to understand the product or
service, as well as the industry in an intimate way, so that it can be easier to innovate. The
strategy needs to be dedicated to innovation so that it can then provide for how these resources
can be gained, as well as how they can be better utilized to achieve the stated goals.
I need to improve my strategic discipline and ability to be a good innovator. I need to
reassess my strategy regarding being an innovator not just in the business or professional life, but
personally as well. This approach will enable me to adopt the right attitude – what can be made

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better, all the time. This attitude is necessary since it prevents organizations from being caught
off guard b their competitors or the market. They are always thinking of how things can be done
better. However, they are approaching this from the point of view of the market and competitors,
leading to a strategy firmly focused on innovation.
A strategy which can result in innovation needs to overturn the status quo and the
orthodox way of doing things. Though it may sometimes be difficult to make a difference as they
have always been done drastically, it is necessary to do so, so that newer and better methods are
found. With the attitude that nothing is indispensable, the mind will become more open to ideas
for creativity which is necessary for building an organization on innovation.
Management in respect to innovation refers to how the competence, the skills and the
strategy formulated to achieve innovation are run. Management refers to the optimal utilization
of the resources available to so that they can deliver the best possible resources in the present
circumstances. In managing for innovation, it is necessary to apply knowledge and skills to the
right roles. As stated earlier, the individual will be better suited to innovate when they are
dealing with what they understand. It is for management to ensure that this is the case. In the
settings of an organization, it is necessary to make sure that the right people have the right jobs,
where they can work better. Resources should be applied well, and existing ones improved to
enable the organization meet its innovation goals.
One of the challenges that management needs to look into is harnessing underappreciated
talents and resources. In my case, there are resources which I have not been able to put to good
use. These resources could be better utilized to bring about better products or performance. T the
same time, some resources may have been applied to the wrong uses. By directing them to the
right utilization, better performance is possible.

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Planning
Having conducted the personal innovation capability audit, the next phase is laying out a
plan which can be used to address the shortcomings better, while augmenting the strengths found
in the audit. One of the most glaring weaknesses related to the adoption of a strategy to guide
innovation, and a proper management approach which will enable optimal utilization of
resources. In formulating the plan, the SMART framework will be followed so that the
objectives can be specific, measurable, aligned, and realistic and time-bound.
Specific
The proposed strategy will aim to enhance the level of knowledge in the relevant field.
This will include the attainment of a professional qualification in IT, as well as Accounting. The
courses will e completed in one and a half years’ time. Having acquired these, I will also
complete my degree, so that I can have sufficient theoretical background in the field I expect to
make my career in.
I also plan to acquire practical skills in the field. Towards this, I will undertake an
internship programme for a period of six months in an organization which is aligned with my
stated objectives of improving innovation. The internship programme will give me reliable and
practical experience during which I can be able to apply my education and professional
qualifications in a real environment. More importantly, I will be able to acquire knowledge and
practical use my skills in trying to bring about innovation. The internship will be completed by
nine months after my graduation, at which time I will have become more competent in what I
intend to do.
I will draw up a strategy formulation draft, which will assist me to come up with a
realistic approach to enhancing my experience and creativity. The strategy formulation will focus

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specifically on attitude change, gaining more experience and knowledge in how organizations
work, how they treat innovation, and how innovation to make innovation the norm, rather than
the exception.
Measurable
I intend to have acquired experience and knowledge in the fields of information
technology, marketing, and finance; by the time my plan is complete. The acquired experience
will be measured using an end of internship appraisal which I expect to hand to my supervisor.
The growth enjoyed during the internship will be measured by the ability to handle complex
tasks, and apply my academic knowledge to practical settings. The measurement of skills and
knowledge will also be measured by the grades obtained both in the university degree and in
completing the other professional courses. Due to the enthusiasm and passion I have applied to
them, I expect to pass these well and to acquire the knowledge necessary to help me in future
career growth.
The measurement of management capability will be measured by how well I can handle
my resources and direct them to innovation. The attitudes adopted both forms the internship and
education, as well as in my personal growth will also be assessed over time through a reference
to the content of these development projects.
Aligned
The goals I have planned for the period are closely aligned with each other, and with the
overall purpose of becoming better in my innovation capacity. The capabilities being developed
all complement each other. Competence through education will be complemented through
internship and a change in attitude. At the same time, the shift in strategy will be strengthened by
a commitment to the sustained improvement of my capabilities, as seen through enrollment in

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school and looking for n internship opportunity. The result of a well-aligned plan will be more
efficient implementation, as well as the ability to improve on previous performance continually.
There will be a focus on one goal – improved innovation, rather than several goals which end up
distracting each other and diluting performance.
Realistic
The goals set are achievable in a reasonable time, and by a reasonable person. I have not
set goals which are too lofty to be attained, or too low to be of any consequence. The goals set
are also done in close reference to the existing competencies. Being already enrolled at the
university, it will be practical to complete the course, and take up professional ones to increase
knowledge. At the same time, it is realistic to expect to secure an internship position within three
months, due to the current market trends and opportunities for students in the city.
Time-bound
The goals will be time-bound. From the current date, they will be completed over a
period of 2 years. This time will be sufficient to complete all the elements in the plan. However,
there will be no room for error. I will specifically focus on finishing whatever I am doing now,
and what else can be achieved using the available time resources.
Section 3
Innovation models
There are several types of innovation. These models help explain the various ways
through which businesses can better address innovation in their business. Innovation may be
focused on a number of issues. These include the process, the supply chain, the mode of
producing, or specific components of a product or service that are changed to make it better,
cheaper to produce or more appealing to particular customers (Slater, Mohr and Sengupta, 2013).

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Product innovation refers to an innovation model in which the organization targets
continuous improvement of what it already produces. Product innovation may be incremental,
whereby a manufacturer for instance over time improves the quality of their product. It may also
be user-led, whereby the organization looks to the market for new ideas, which it then
incorporates into the production. It may also include the addition of new features into the
product.
Process innovation refers to innovation which is focused on the process used to produce
the product or services. Process innovation involves combining the facilities, skills, and
technologies used to deliver the finished product, and improving them to affect the quality of the
process and the product. Changes in equipment, the design of machinery, techniques and the
skills used to produce are all components of process innovation (Norman and Verganti, 2014).
Business model innovation is not concerned with the product, as the primary target of
improvement. It rather focuses on how the product is brought into the market. For instance, a
company may acquire a new one so that it has access to the acquired company’s resources and
market. A business model change attempts to realign resource use, market approach, and the
nature of products. It is wider, as it affects the structure and culture of the organization
(Huenteler et al., 2016).
Technology sector
The technology sector perhaps best embodies the importance of innovation. In the last 50
years, the industry has been overrun by changes which have caused a revolution in the way
people communicate and conduct business. Moore’s law was one of the first statements used to
capture what lay ahead for the industry, remarking on how fast the space occupied by transistors

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was reducing. The product innovation and process innovation models of innovation will be
discussed regarding their relevance to the sector.
Product innovation
Over time, companies have had to change the type of products which they market. These
product changes are the result of many hours of innovation spent by the companies. In other
sectors, there will be landmark innovations which come and change the way things are done, for
instance how people use a phone has dramatically changed from being only a tool of sending a
verbal communication to being a virtual computer. However, most of the product innovation that
companies in the technology sector are involved did not concern changing the way things are
done. They are better versions of the present, but they are produced to maintain the edge or to
survive simply. Product innovation for the sector, therefore, represents not only a way of
growing but a basic necessity for survival (Huenteler et al., 2016).
While technological implements and services have come a long way since the first
mobile phones were first launched, much of the innovation has not been achieved through the
use of innovations to how better the products work – the technical aspects. Rather, they have
been innovated through the consumer. By focusing on the customer, the technology industry is
better placed to understand what will meet or exceed their expectations. The underlying
technological advance is not the most important aspect of the innovation. After all, even some
technological advances could fail to capture the eye of the consumer, leading to their failure
(Norman and Verganti, 2014).
Companies have to consider whether their innovation prowess will be used to generate
more revenues. Or better margins. For instance, Apple, one of the biggest phone and mobile
phone operating systems developer is renowned for its attention to design and uniqueness. The

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company spends huge amounts of money producing premium products. These products are then
able to sell at premium rates in the market, bringing in significant margins to the company, even
with fewer volumes being sold. On the other hand, Samsung produces for the mass market. As
such, its innovation is mainly geared towards moving large volumes of devices, as a way of
increasing its revenue. As a result of the different approaches, the innovation required differs, as
does the particular product innovation. Samsung may focus more on the process through which it
produces the phones, while Apple concentrates on the product innovation (Slater, Mohr and
Sengupta, 2013).
Over time, the product innovation that has for ears gripped the technology industry is
moving away from the nature of the products per se. Rather, it is the services which the product
comes with that matter. To meet this need, technology companies have to invest in better
customer interaction mechanisms, innovative ways of understanding customers and what they
need to form their devices, as well as handling customer complaints. This means that while
product innovation still remains an essential part of the business, focus towards other innovation
models – especially business model innovation continues to grow (Huenteler et al., 2016).
Process innovation
Process innovation refers to an emphasis on the processes through which the process is
produced so that they can be improved and better meet customer demands. Process innovation is
in many ways similar to product demand. The product is the focus of the innovation drive. Both
innovation models can be worked with the consumer in mind, rather than a blind focus on the
improvement of the process or product. However, whereas product innovation focuses on the
components of the product which can be made better, process innovation is about improving the

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process – the design of the machinery, and their servicing, how materials are procured, how the
finished good reaches the market, among other parts of the process (Lager, 2016).
Process innovation is better achieved when there is a dominant design. This means that
attempts to improve the process will be done with a general idea of a product in mind, rather than
a changing field of products specifications. For these reasons, process innovation and radical
product innovation may usually not align. Process innovation is concerned more not about the
betterment of the product itself, but about how the process can be made better, saving on costs,
or making the product of a higher quality. For instance, process innovation recommendations
may entail allowing employees a longer tea break, so that they can fully be energized and work
faster while doing a job of higher quality (Trantopoulos et al., 2017).
Product innovation is concerned with improving quality, expand product portfolio, and in
the process the product market. This is unlike process innovation. While these are still the end
goals of the innovation process, process innovation is more concerned about the increased
flexibility of production, reduction of labor cost and other overheads, reduction of material costs,
including their handling, and other cost drivers. This may mean in some instances that for a
company to be entirely successful at tapping the potential of its innovations, it needs to combine
product innovation with process innovation. Only then will it produce products which the market
wants, but also at the right price and quality (Trantopoulos et al., 2017).

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References
Huenteler, J. et al. 2016. Technology life-cycles in the energy sector — technological
characteristics and the role of deployment for innovation. Technological Forecasting and Social
Change, 104, 102-121.
Lager, T. 2016. Managing Innovation & Technology in the Process Industries: Current Practices
and Future Perspectives. Procedia Engineering, 138, 459-471.
Norman, D., Verganti, R. 2014. Incremental and Radical Innovation: Design Research vs.
Technology and Meaning Change. Design Issues, 30,(1), 78-96.
Slater, S., Mohr, J., Sengupta, S. 2013. Radical Product Innovation Capability: Literature
Review, Synthesis, and Illustrative Research Propositions. The Journal of Product Innovation
Management, 31(3), 552-566.
Trantopoulos, K. et al. 2017. external knowledge and information technology: implications for
process innovation performance. MIS Quarterly, 41(1), 1-8.