Three types of innovation are considered relevant nowadays. They are related to the product, the process, or the management or the organization in general. An example of product innovation is a fitness tracker introduced to the market by Fitbit in 2009. Process innovation can be illustrated by implementing a supply system “just-in-time” by Toyota that drastically reduced logistics expenses. Finally, management innovation, which can also be referred to as business model innovation, can be described by mobile taxi apps that conquered the market soon after their appearance.
Product innovation, as the plainest type of innovation, is the most widespread among others. It implies introducing a completely new, or based on the previous ones but changed drastically, product or service. In other words, product innovation is strongly connected with inventions, technology, scientific research, and the development of previously introduced goods. Product innovation triggers the improvement in the quality of goods and accelerates goods and services fitting the mass consumer.