Final answer:
Transduction involves the transfer of DNA from one bacterium to another via a bacteriophage during the lytic cycle, which is different from transformation (direct uptake of DNA from the environment) and conjugation (direct DNA transfer between cells).
Step-by-step explanation:
When considering the combination of a lytic lifestyle and insertion, the process being referred to is most likely transduction. In transduction, a bacteriophage (a virus that infects bacteria) carries DNA from one bacterium to another. This can happen during the lytic cycle, in which the virus hijacks the host's cell machinery to replicate its own genomic material. As the new viruses are assembled, occasionally a piece of the bacterial host's DNA is mistakenly included in a virus particle. When this virus goes on to infect another cell, it injects the previous host's DNA along with its own, which can then be incorporated into the new host's genome.
Transduction contrasts with transformation, where a cell takes up DNA directly from the environment, and conjugation, where DNA is transferred from one cell to another through direct contact, often via a pilus.