process innovation is one of the most actively implement innovation strategies currently being used by companies and organizations. Introduction of this important process innovation is presented in this article. Formerly known as process redesign, process innovation is defined by the OECD Oslo Manual, which
process innovation is the implementation of a new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and / or software.
“… The implementation of a new or significantly improved production … method” involves the development of new ways to produce products with a newly developed engine, new methods such as 3D CAD models for product development or the use of new technology like 3D rapid prototyping as part of the process or to develop new products.
As Davenport describes, process innovation is not about incremental improvements of 5-10%, but the improvement of 50-100%. By combining process part of innovation, companies and organizations are able to unleash enormous potential. Much of Japanese business success that culminated in 1980 and 1990 has been attributed to the application of process innovation.
Delivery methods are associated with the physical movement of product from the factory floor to the end user, such as a process manufacturer. This includes system is implemented in improving the delivery of the product to the customer and end-users, such as inventory control systems, IT systems and equipment related to the project.
Current developments in process research innovation focus
- Focused Internal Collaboration – Creating transparency and accountability provided through the latest generation knowledge management (Service Oriented Architecture) platforms and dashboard technology to business agility. This involves the use of an internal database and IT systems.
- Applied Customer innovation – Greater responsibility will be to give customers the management of purchasing and consumption experiences. A circle of “holistic innovation” will identify process steps as value-added or non value adding, with requisite innovations made possible. Process steps that do not add value will be shortened or completely eliminated. For example, using polling and surveys of online methods are increasingly used to obtain customer data to drive innovation.
- Deeper Process and Data Mapping – Enterprise systems, processes, data and places listed from the granular level and mapped to another for maximum transparency and continuity. Without further insight into the lower levels of mission critical business landscape foundation, business process innovation will be constrained. Examples of this include the implementation of systems that collect and organize product development data. For example, if the customer identifies a product improvement, information automatically cycled back to the product metrics data.
- Better Process Metrics -. KPIs and KPMs will better define and track, in order to better reflect the essential nature of the business process
- Further Automation Workflow – Process steps are further electronically enabled and automated. Especially important is that the process in which data are stranded in a non-electronic form, such as water or gas meters and relies on manual data collection. The end goal should be to carry out as many business processes as possible online.
Process innovation can be applied to a number of industries and practices, from architecture to production. It is also very useful in the case of multidisciplinary activities like large-scale projects or when multiple vendors are used in a business model.
tough economic environment now warned the world will inevitably lead to a lot of consolidation and contraction in many industries. Keep in mind the current recessionary challenges, it is a given that most large companies will change, at least in the short term, and how they conduct various parts of the day to day dealings. The catalyst for organizations to “go green” is another reason that business entities will see many of the current process core business, optimizing and tweaking them for maximum cost and efficiency, while making them more sustainable and environmentally friendly.
Strengthening the innovation process will be absolutely necessary for the survival of many companies in this economically uncertain time, but it creates also a great opportunity for the company to better position itself against the competition with innovations in service delivery, operational transparency, organizational structure and better consumption of resources. Moreover, reorganizations employees and the merging of geographic offices and data centers can create a huge void responsibility and accountability for several mission-critical business processes.
Process innovation involves companies and organizations open up scrutiny and dramatic organization to improve overall results. At a time of great difficulty, as we all now face, the need for innovation is paramount. It is worth evaluation and potentially revolutionary changes in organizations to not only survive, but thrive in such cases.