E1 Innovation and Enterprise
Innovation refers to the process of developing new products or making improvements to existing products
Enterprise is the act of exploring new ideas for business and product development and taking risks to attempt to bring an idea to market.
Innovation
Product Innovation refers to the creation of new products and adaptations to existing products. Benefits include establishing and maintaining a USP, the ability to charge higher prices. brand reputation, first mover advantage and attracting talent in the recruitment process. However innovation costs money, takes a lot of time, can waste resources and there is an uncertainty in whether there will be a good outcome or how the customers will respond.
Process innovation refers to the creation of new techniques and machinery in there production process or making improvements to existing. This could be from the introduction of robots on a production line to changing the layout of a factory. Benefits include adding value to products, increased productivity, increased efficiency, reduced costs and reduced environmental damage. However there could be high investment and maintenance costs and machinery creates waste when it becomes obsolete.