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Module 3 - Objective 6 - The 4 P's of Innovation Lecture Notes

The document outlines the 4 P's of innovation: Product, Process, Position, and Paradigm. Product innovation enhances the value of goods or services, while process innovation improves production efficiency. Position innovation redefines perceptions of existing products, and paradigm innovation reshapes the fundamental models of organizations or sectors.

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Antonia Pierre
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15 views1 page

Module 3 - Objective 6 - The 4 P's of Innovation Lecture Notes

The document outlines the 4 P's of innovation: Product, Process, Position, and Paradigm. Product innovation enhances the value of goods or services, while process innovation improves production efficiency. Position innovation redefines perceptions of existing products, and paradigm innovation reshapes the fundamental models of organizations or sectors.

Uploaded by

Antonia Pierre
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Entrepreneurship Unit 1

MODULE 3 – Objective 6
Lecture Notes – The 4 P’s of Innovation

1. PRODUCT INNOVATION
Perhaps the by and large understood type of innovation is that which introduces or improves the
value of a product or service. The Split AC is an example of a product innovation, which has also
benefited from a range of incremental innovations since its original invention. There may also be
innovative products which help to achieve organizational goals. For example, the Life Straw is a
portable water filter developed by Vestergaard-Frandsen which enables individuals to drink
clean water from almost any source. Product innovation leads to product development
approaches.

2. PROCESS INNOVATION
Innovations also focus on processes through which products are produced or delivered to
customers. By improving the process into innovative process organizations mostly enhance their
efficiency and effectiveness. Examples of process innovations that have had a positive effect on
organizational performance are automated packing, Adoption of CNC etc.

3. POSITION INNOVATION
The third focus of innovation is re-positioning the perception of an existing product/services or
process in a specific context. Position-based innovations refer to changes in how a specific
product or process is perceived representatively and how they are used to achieve the
organizational goals. For example, Levi-Strauss jeans are a well know global product line,
formerly developed as manual workers’ clothing materials, but then re-branded as a fashion item.

4. PARADIGM INNOVATION
The final ‘P’ of 4P innovation model relates to innovation that defines or redefines the dominant
paradigms of an organization or entire sector. Paradigm-based innovations relate to the mental
models which shape what an organization or business is about. Henry Ford provides a pithy
quote, when talking about the development of the Model T motor car: ‘If I asked people what
they wanted, they would have asked for a five-legged horse’.

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