ITPEC FE Morning April 2022 Question 69
Which of the following is the appropriate description of process innovation?
Explanation
Innovative manufacturing procedures that improve product quality — process innovation changes how a product is made.
Innovation is classified by what changes. Product innovation creates a new or better product; process innovation creates a new or better way of making or delivering it, raising quality, cutting cost or shortening lead time.
Answer (b)
Why not others:
- •(a) — a new product based on original, advanced technology is product innovation
- •(c) — having another company that owns a semiconductor manufacturing process do the manufacturing is outsourcing (the fabless and foundry split), a sourcing decision rather than a new process
- •(d) — spreading widely after winning the competition and becoming a de facto standard is the outcome of a standards contest, not a kind of innovation
Key rule: Product innovation changes what is made; process innovation changes how it is made.
Technological Strategy Management · AI-written, may contain errors
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