ITPEC FE Morning April 2022 Question 69

Source exam: ITPEC FE Morning April 2022Topic: Management Strategy

ITPEC FE Morning April 2022 — Question 69 of 80

Process innovation means introducing new or significantly improved methods, procedures, or techniques in how a product is made or a service is delivered — not what is delivered.

(b) is correct: developing innovative manufacturing procedures that improve product quality is a textbook example of process innovation.

Why not others:
- (a) Describes product innovation — creating a new product using advanced technology, not changing the process.

- (c) Describes outsourcing — delegating production to a third party, which is a business decision, not an innovation in process.

- (d) Describes the establishment of a de facto standard — a market outcome, unrelated to the definition of process innovation.

Key rule: Process innovation = improving how things are made; product innovation = improving what is made.

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