Process Innovation: Innovate the Innovation Process
The world is constantly changing, and with it, the definition of what it means to be innovative. It's difficult to stand out from the pack in a society that is constantly inundated with new technologies, new ideas, and new ways of doing things.
Most think of innovation as a breakthrough product innovation or service idea. Maybe a business model innovation. Most innovators overlook what some think of as mundane innovations, such as incremental and business process management. But it is this type of innovation that can have a much greater impact, in the long term, on society.
What Is Process Innovation?
Process innovation is the implementation of new or significantly improved processes in order to achieve tangible outcomes. A process is a set of coordinated activities that use resources to transform inputs into outputs. These processes are often referred to as business processes.
There are many different types of process innovations, but all share the same goal: to make a process more efficient, effective, or both. The two types are:
1) Operational Processes
The most common type of process innovation is operational process innovation, which seeks to improve the efficiency of a process by streamlining activities and eliminating waste in production or delivery.
- Structural: Improves the efficiency of a process by redesigning its structure. This may involve changing the order in which activities are carried out, or eliminating certain activities altogether.
- Functional: Improves the efficiency of a process by improving how its activities are carried out. This may involve developing new methods or technologies to effectively carry out activities.
2) Managerial Processes
Another type of process innovation is managerial process innovation, which seeks to improve the effectiveness of a process by improving coordination and decision-making.
- Strategic: Improves the effectiveness of a process by redesigning its structure. This may involve changing the order in which activities are carried out, or eliminating certain activities altogether.
- Tactical: Improves the effectiveness of a process by improving coordination and decision-making.
Why Is It Hard?
In order to be successful, businesses must constantly improve their processes. This can be difficult, however, as process innovation is not always easy. There are many factors that can make it hard for a business to innovate its processes.
1) Hard To Change Business Processes
Process innovation is hard because it involves change. Most people are resistant to change, especially if they feel like they are doing just fine with the way things are. In order to successfully implement a process innovation, you need to overcome this resistance and get people on board with the new way of doing things.
You also need to make sure that the change is implemented gradually so that people have time to adjust to the new way of doing things. It's also important to get feedback from people throughout the process so that you can make sure that the changes are actually making things better and not just causing more confusion.
2) Hard to Understand The Process
You also need to clearly understand the current process and what needs to be changed. This can be difficult to do if you are not intimately familiar with the process. And even if you are, it's hard to identify inefficiencies and bottlenecks that can be improved.
One way to better understand the process you want to innovate is to break it down into its individual components. This can help you see where and how the process can be improved. You can also diagram the process to see how the different activities are connected to one another.
You can also try carrying out the process in a different order to see if that makes it more efficient. And, if you're still having trouble understanding the process, you can always ask someone who is more familiar with it to help you out.
3) Hard to Secure Execution Support
Finally, you need to have a plan for how to implement the new process. This includes having the right resources in place and making sure that everyone involved knows what they need to do. Without a well-thought-out plan, it will be difficult to successfully implement a business process innovation.
Once you have a plan and the necessary buy-in, you can begin implementing your process innovation. Start by gradually rolling out the changes to avoid too much disruption. And be sure to get feedback from everyone involved so you can make sure the changes are actually making things better.
Examples of Process Innovations
Process innovation can take many forms, but some of the most common examples include developing new methods or technologies to carry out activities more effectively, redesigning the structure of a process, and improving coordination and decision-making.
1) Toyota's Just In Time Manufacturing System
One example of process innovation is Toyota's Just In Time manufacturing system. The system dates back to the early 1970s. At that time, Toyota was struggling with high levels of inventory and waste in its supply chain. To address these issues, the company began exploring new manufacturing methods, including JIT. JIT involves developing direct relationships with parts suppliers and then having just enough parts on hand to meet production needs, with no excess inventory. This helps to reduce waste and costs, while still ensuring that the production process can meet customer demand.
Taiichi Ohno, an engineer at the company initially developed Toyota's JIT system. Ohno drew inspiration from supermarket shelves, which are stocked with just enough items to meet customer demand, with no excess. He adapted this concept to Toyota's manufacturing business processes, and the JIT system was born to create simplified vehicle assembly.
Since its inception, Toyota's JIT system has been constantly refined and improved. Today, it is widely regarded as one of the most effective manufacturing business processes in the world. JIT has helped Toyota to create product innovation that makes it one of the most successful automakers in history and has influenced manufacturing processes around the globe.
2) Ford Assembly Line
Ford's assembly line is another example of process innovation that enabled a business model innovation. The Ford Assembly Line was created by Henry Ford and introduced in 1913. It is one of the most important inventions in modern history because it increased production efficiency and allowed for assembly-line mass production. The system also helped to reduce the cost of manufacturing cars, making them more affordable for consumers.
In order to meet the demand for his Model T cars, Ford needed to mass-produce them quickly and efficiently. He came up with the innovative idea of a moving assembly line, where each worker would be responsible for one specific task. The workers would then move down the line as the car progressed through various stages of vehicle assembly. This system increased efficiency and allowed for mass production. It also helped to reduce the cost of manufacturing cars, making them more affordable for consumers. Some would call this a product and process innovation in a highly competitive business environment.
3) The Lean Startup Process
One modern example of process innovation is the Lean Startup methodology. Developed by Steve Blank and Eric Ries, Lean Startup is a business process for rapidly prototyping and testing new business ideas. It helps startups to reduce waste and costs, while still ensuring that they are able to test and validate their innovative ideas.
Lean Startup has become one of the most popular methods for launching new businesses models. It has been used by startups all over the world, including some of the most successful companies in history, such as Airbnb and Uber, to create a unique product innovation for their customers.
What Are The Benefits of Process Innovation?
Process innovation can provide a number of benefits for businesses, including:
1) Reduced waste and costs
By developing new methods or technologies to carry out activities more effectively, businesses can reduce the amount of waste produced.
2) Improved efficiency
Process innovation allows organizations to carry out activities more effectively, which reduces the time required to complete those activities.
3) Increased production capacity
By redesigning the structure of a process or improving coordination and decision-making, businesses can improve the flow of work and reduce bottlenecks, resulting in a more efficient process that can handle a higher volume of work.
4) More affordable products or services
Process innovation can help create business model innovation to produce products or services at a lower cost, making them more affordable for consumers. Increasing efficiency can lead to lower costs, which can be passed on to consumers at lower prices.
5) Greater customer satisfaction
By constantly improving processes, businesses can ensure that their products or services meet the ever-changing needs of their customers. This can lead to increased customer satisfaction and loyalty.
Innovation Process as a Business Process
Businesses should always look for ways to improve their processes in order to increase efficiency and productivity. The innovation process is no exception. This process should be constantly refined and improved, in order to ensure that businesses can bring product innovation to the market in a timely and efficient manner.
There are a number of ways that businesses can innovate their innovation process, in order to make it more effective. One way is to increase the amount of collaboration between different departments within the organization. This will ensure that all stakeholders are involved in the process and that ideas can be freely exchanged. Another way to improve the innovation process is to create a culture of experimentation, where failure is an opportunity to learn and improve. This will encourage employees to take risks and experiment with new ideas, without fear of repercussions.
Finally, businesses should make use of data and analytics in order to track the progress of their innovation process. This will allow them to identify areas of improvement, and to make changes in real-time. By constantly monitoring and refinement of their innovation process, businesses can ensure that they are always at the forefront of market trends and able to create a product innovation that customers want.
This will give them a competitive advantage in their industry and allow them to better serve their customers.
Role of Innovation Agency
If you are serious about looking at process innovation, then look at working with an innovation agency. These agencies have a team of experts who are experienced in innovation and can offer guidance and advice. Many innovation agencies also offer other services, such as market research, design thinking, and project management.
The role of an innovation agency is to help businesses to navigate the process of innovation, from ideation to implementation. They can offer guidance on how to generate new ideas, how to assess the feasibility of those ideas, and how to execute and deliver the innovation. Innovation agencies can also help businesses to overcome some of the common challenges that they face, such as a lack of resources or expertise.
Innovation agencies typically work with businesses of all sizes, from small startups to large corporations. They can help businesses to develop new products or services, to enter new markets, or to improve their existing offerings.
Next Steps
If you’re serious about using process innovation to supercharge your innovation efforts, consider using an innovation agency like Techtrend. We can help reduce risk while increasing success. Contact Techtrend at hello@techtrend.com. We would be happy to discuss your specific needs and see how we can help.
