Noise reduction

Image processing to reduce the noise produced by small sensors or high ISOs.

Noise is caused by random variations in the light captured by each photosite (pixel) on the sensor. Some cameras have sensors which apply 'on-chip' noise reduction, where electronic circuitry adjusts the signal values captured by the sensor's photosites. This is probably the best sort.

Otherwise, noise reduction is applied by the camera to the raw image data as it's processed to produce the photo. This reduces noise, but can result in smudging and loss of detail.

The same applies to noise reduction processes applied using software on a computer, though with more processing power available and more time to find the best settings, this may produce better results.

In any event, noise reduction is something you'd rather wasn't necessary at all. Using a small sensor and applying noise reduction is not as good as using a larger sensor which doesn't need it.

Intelligent Resolution | Or just clever noise reduction?

This is a processing technology used in newer Panasonic Lumix cameras which takes a more sophisticated approach to sharpening and noise reduction by separating the image into three types of area: outlines, detailed texture areas and soft gradations. Outlines are sharpened, detailed texture areas are moderately accentuated and soft gradation areas (like skies, for example), are smoothed rather than sharpened.
By separating these different types of detail and processing them differently, Panasonic hopes to achieve good detail without increasing image noise. Conversely, 'Intelligent Resolution' should provide lower noise at high ISOs without compromising on detail, particularly textured detail, which is usually the first casualty.

This is one of Panasonic's own illustrations of the results this technology achieves, but this is an demonstration of the potential benefits, not a real-world test. It's not yet clear whether Intelligent Resolution offers a better noise/definition compromise than other processing systems, but it's encouraging that manufacturers realise the issue needs addressing.

On the other hand, critics would point out that if Panasonic used APS-C sized sensors rather than the smaller Micro Four Thirds format, the issue might not arise in the first place.