Loading…
Loading…
GCSE Business · key term
Introducing a new idea, product or way of doing things, or improving an existing one.
Used by AQA, Edexcel and OCR
Paper 1, Paper 2
Revise: Entrepreneurship and the Changing Business EnvironmentInnovation does not have to mean inventing something entirely new. An entrepreneur might improve the way customers order an existing product, making the service more convenient and giving customers a reason to choose it over rivals.
Specification 1.1.1, 2.1.1 · Paper 1, Paper 2
Introducing a new idea or an improvement to an existing product, service or way of doing something.
Revise: Dynamic Nature of BusinessThe change might improve how it works, make it more convenient or make it suitable for different consumers. This is a form of innovation; it does not require inventing a whole new category of product.
The introduction of a new or significantly improved product or way of doing something.
Paper 1
Putting a new idea into practical commercial use, including introducing a new product or improving an existing one.
Revise: Product DevelopmentDesign, invention and innovation describe related, but different, parts of developing products.
Distinguish invention from innovation: creating something new is not the same as putting an idea into commercial use.
Do not assume innovation guarantees higher profit. Its success depends on customer demand and whether the extra revenue justifies the costs.
Create a free account to read GCSE Business revision notes for your exam board and track your progress.