Tens of thousands of additional consumer goods are introduced all over the world every year. But how many of these goods thrive in the super market? According to Clayton Christensen, Harvard business School Professor, 95% of these new products have crashed.

This result illustrates how competitive and challenging today’s economy is, and how ambitious one must be to thrive. However, being proactive is not the only key to success in this case; product innovation, instead, is possibly a more relevant keyword for those that want their brand to be among the effective 5%.

If your idea or approach is creative, you have a far better chance to succeed and prosper. This article discusses the concept of product innovation, how we can see and define innovation, and how we can evaluate it. But what is the creativity of the product? And how can this be done smartly? Let’s find out about it.

Definition of Product Innovation

First and probably most important, the interpretation: product innovation is a new approach to address the problem faced by a large number of customers. There may be no products available that address this problem at all, or there may be other goods already on the shelves that address it in a different manner.

You must be able to respond “yes” to all three of the following points in order to evaluate your idea or product to be innovative:

  • Is the product important to a large number of customers (whether you’re looking at the mass market or the niche market)? This refers in particular to items that discuss problems that have not been discussed before.
  • Is this item superior to its competitors? If so, what is the advancement, technology, usability, etc.?
  • Is it clear that the product is creative or unique? Is it easy to demonstrate to customers why this product is needed or better than its peers and competitors? Although the answer might not always be an easy “yes,” this point is very important to the marketing experts who can support you with the product release.

Why is Product Innovation Important?

Product innovation is crucial because it can help you build new venues in an increasingly competitive market. By finding opportunities and putting yourself in a new space, you can attract an audience and meet customer desires in a way that is new and fresh.

Product innovation has also come a long way and there is product innovation management software for Aussie businesses nowadays.

It is also important to keep in mind that product innovation does not necessarily require the development of a completely new product that solves a completely new problem. To be sure, when the first iPhone was introduced, it created a previously non-existent market and fulfilling needs that customers did not even know existed. Same with Kindle: Not only did the first version succeed (introduced in 2007, sold out in less than 6 hours), but Amazon was able to re-invent it with new versions, including the touch-screen.