Innovation Types: 4Ps of Innovations with Examples

Innovation Types: 4Ps of Innovations with Examples – There are many ways that innovation types are defined. In this article, we will discuss the 4Ps of Innovations with Examples. So, these types are called 4ps because all these four types start with the letter “P”.

First of all, we need to know What innovation is. what does innovation mean?

What is Innovation

Innovation is a creative process which introduces a new solution to the world by enhancing entrepreneurship. Innovation is per term or a combined term of entrepreneurship or an entrepreneur. Because it is the spark process of entrepreneurship or an entrepreneur, it is a changing process that ends with some world-changing creation. It makes a solution to the problem. In this article, we will talk about some popular Definitions of innovation and the importance of innovation.

To find more definitions for innovation – Click here

What are the 4Ps of Innovations

4ps of innovations include,

1. product innovation
2. process innovation
3. position innovation
4. paradigm innovation 

Let’s discuss those innovation types one by one.

Product Innovation

Product is the most generally thought of innovation type, in fact when most people talk about innovation they are rational product-based. Product innovations include changes in the product or services the start-up or organization has to compromise. Product innovation can contain a change in the design of a current product or changing the complete product or service.

Product innovation doesn’t continually involve the construction of a completely new product that challenges a completely new issue. For instance, the initial computer that was launched was established for a non-existent market aiming at the audience who previously did not have access to such technology.

Post the initial computer, the generations of computers we have been seeing and consuming are only added changes and improvements in technologies and designs. For example, computers were made more lightweight and extra time-efficient posts and laptops were announced to make them more convenient.

Therefore, innovation may occur when you advance a current product or you add a new feature to a current product. Innovation is not restricted to products, it also contains services, processes, or business models.

product Innovation Examples

Latest OTT platforms like Amazon Prime, Netflix, Hotstar etc are crucial examples of such innovations. Also, Airbnb, Uber and Ola fall into this type of innovation.

Read – Corporate Entrepreneurship

Process Innovation

Process innovation emphasises renovation in operational processes and is often internal to a company. It can greatly affect the efficiency and profitability of a business and there are several tools and outlines to help stimulate this type of innovation.  For instance, the Flow Process Chart. But it’s a good instance of the Process Innovation life cycle: the first companies to use this method were department stores in the early twentieth century.

There has been a shift in the innovation environment due to factors like liberalization and deregulation of rivalry, the globalization of markets, increasing demand from customers and growth in technology. This led to an alteration in the process of manufacturing within organizations.

Process innovation refers to innovations serving companies in aligning their processes in a customer-oriented manner to safeguard their business is fruitful in the long term. Processes contain the following four elements: process deliverables, process flow, process management, and technologies.

The production process is reformed based on market and tech-related changes in the market.
The benefits of a process-oriented organization are that firms can adapt more quickly to changes in the business environment. The change in the process might be problematic but has high earnings once introduced.

Process Innovation Examples

One of the best examples of Process innovation is AliExpress along with others applied a disruptive innovation to the process of online selling – dropshipping. The manufacturer sends the product to the purchaser. Also, Spotify and other music-streaming services and Ford Motors belt systems are examples of Process innovations.

Learn more about the Entrepreneurial Process – Click here

Position Innovation

Positioning Innovation is about repositioning, captivating a product or service and offering it in a novel market, or with a novel slant. A recent worthy example would be AirBNB, originally positioned around conferences before moving into the general holiday and traveller industry.

Position innovation is how all other types of innovation are made possible. The initial stage in doing something novel is creating space for yourself to do it, and that’s what position innovation does.

Positioning Innovation is principally about repositioning. Another such example is AirBNB which first started related to conferences and later moved to the general holiday and traveller business.

Position-centred innovations also relate to conversion in how a specific process or product is perceived or used.

Position Innovation Examples

Online home rental marketplace Airbnb, Low-cost Tata Nano cars and Low-cost airline openings are some examples of Positioning Innovations.

Learn more about Technopreneurship – Click here

Paradigm Innovation

Paradigm Innovation is the shifting of a fundamental conceptual model via a change, a common example this Henry Ford and the motorcar. The most common misconception about innovation is that it’s similar to invention. But society has always required new things, and so there’s a continuous requirement for the innovation mix: to make current things improved.

Paradigm innovation isn’t just the most mutual method of innovation; it’s also the most significant. You can argue that all key economic development comes from paradigm innovations. These are innovations like electric cars, which don’t simply improve existing products but change primarily what’s potential within that innovation space.

The aim of paradigm innovation is so vital is not just that it allows economic growth, but that it makes new wealth. Businesses are continuously shifting paradigms particularly when they find other subdivisions more profit-bearing.

Paradigm Innovation statuses to the shift in the vital theoretical model via a change in the business status quo. An important example in the case of paradigm innovation is the initiation of the iPhone and smartphone progress. Before these came up the way consumers absorbed the data in a very dissimilar way, be it in newspaper advertisements, TV advertisements, websites, magazines, etc. As smartphone technology grew, most people switched to consuming data via their phones.

Brands faced a move in the paradigm of digital consumption as they shifted businesses to offer to the newly developed market.

Paradigm Innovation Examples

Smartphone growth and Google advertising are some examples of Paradigm Innovation.

4Ps of Innovations Summary Chart

Conclusion

We discuss 4p’s of innovations. Product innovations include changes in the product or services the start-up or organization has to compromise. Process innovation emphasises renovation in operational processes and is often internal to a company. Positioning Innovation is about repositioning, captivating a product or service and offering it in a novel market, or with a novel slant. Paradigm Innovation is the shifting of a fundamental conceptual model via a change.

So, what are your thoughts about this article? Plz, write down in the comment section below to improve our article.

FAQs on 4ps of Innovation

What are the 4 P’s of Innovation?

The 4 P’s of Innovation is a framework that fosters enterprises to think creatively. Especially to identify growth opportunities. It guides the investigation of different routes of innovation. It allows businesses to examine every aspect for potential enhancements. Also, make impactful changes in the market.

What do the 4 P’s include?

The 4 P’s are:

• Paradigm innovation: Challenges status quo and explores new operations.
• Process innovation: Improves business methods and workflows.
• Position innovation: Changes product or service perception, targeting new audiences.
• Product innovation: Creates new products or significantly improves existing ones.

These elements drive growth and adapt to evolving customer needs.

Who created the 4 P’s model?

The professors Joe Tidd and John Bessant created the 4 P’s model. In innovation management, it is a fundamental concept. It provides businesses with tools and frameworks to foster creativity. Also, change is considered a foundational concept in understanding innovation’s potential impact.

Why were the 4 P’s created?

The 4 P’s were invented to give companies an organised and systematic procedure to innovation. It enables them to identify and implement it effectively in a rapidly changing business landscape. This comprehensive framework covers every aspect of a business. Especially from products to processes, and market position. Also, the operating paradigm ensures competitiveness and adaptability.

Why are the 4 P’s important?

Here are the reasons why the 4 P’s important for business.

• Provides a holistic approach to innovation.
• Requires versatility and innovation across multiple areas.
• Enables finding new growth opportunities.
• Unlocks new markets and improves efficiency.
• Creates products or services that resonate with customers.
• Provides a blueprint for sustainable business success.