Feature innovation is a relatively new term applied to innovation. It is not a new concept however. Feature innovation is when a business offers a product that they have had for a while, but there is a new “feature” attached to it. A credit card would be a good example of feature innovation. Credit card companies have created products with limited solutions to a consumer problem. These are the balance transfer deals with 0 percent. It is a feature innovation because it does not last very long.
Another way of looking at feature innovation is to look at the “new feature” that has been added to a product. Consider satellite radio a feature innovation. When the radios were first put in cars it was a new feature.