Ø  Product innovation;

This involves production of new goods and services that are substantially improved. This might include improvements in product characteristics, technical abilities or the ease of use and any other dimensions. E.g. addition of a radio, camera and internet on a mobile phone;

Ø  Process innovation;

This involves introduction of a new method of production or a new way of handling a commodity commercially. For example communication from post office to telephone, fax and email;

Ø  Business/strategy innovation;

This type of innovation stresses the growth need for today’s organizations to proactively address the challenges of the future by undertaking radical innovation that will transform their environment and the market place.

Ø  Incremental innovation;

This involves continuous improvement of the products, services and processes. Here you keep on making small changes or improvements at time so as to always be a head of others in the market.

Ø  Radical innovation;

This leads to change but it does not lead to a new industry. It leads to the establishment of a new dominant design and high degree of change in human behavior. E.g. Computers changed the way of communication and data storage and management.

Ø  Fundamental innovation;

This depends mainly on a new scientific knowledge. It normally opens up completely new industries. However for it to succeed it must have a strong scientific base e.g. research and development;

DRIVERS OF INNOVATION

·       Technological changes

·       Competition

·       Market changes

·       Research and development

·       Changes in tastes and preferences

·       Globalization

·       Shorter product life cycles

·       Financial pressure i.e. to reduce cost and improve efficiency

·       Value migrations; as products lose value, the need is to retain it through product improvements;

·       Strict regulations e.g. ISO, RNBS, etc

·       Community and industry changing needs

·       Education

·       Personality

·       Creativity

·       Enabling environment;