I have been talking to several people in the software products space and everybody feels that at a certain stage the product needs to be innovated in order for it to keep in pace with the competition. But when I asked them about what exactly do they mean by innovation there was no single answer. So my two cents worth on Software Product Innovation.

What is Product Innovation?

It is adding something new which would be beneficial to both the customer and the vendor. Product innovation for the software vendor is mostly process innovation for the customer.

How does Product Innovation take place?

Product Innovation lies in the hands of a team and not an individual. Brainstorming sessions are an integral part of Product Innovation. It usually starts with Idea generation, Research, Experimentation and Prototyping. Usually vendors look for ways of solving customer problems which results in an idea being generated.