Process Innovation: Improve the way of doing things and increase Productivity

4 Min Read
Process Innovation: Improve the way of doing things and increase Productivity

The business environment is always changing, which is why companies have to reinvent themselves regularly. Innovation is one way that enterprises get an edge over their competition. It ensures that you have something new and of value to offer consumers. 

However, innovation comes in several forms, with each playing a different role in a company’s operations. Process innovation is one of the elements you can implement to generate visible change in how an enterprise runs. 

This innovation type can cover various aspects of a company, from technology to equipment to systems. Before anything else, though, you should learn all the critical success factors of PI and what it means for your organisation.

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What is Process Innovation?

Process innovation is about designing and implementation new and significantly improved business processes. Whether in the production process or delivery process its focus is on improving the process, productivity and reducing waste.

An improved process on how a company carries out certain processes. PI involves the use of new methods or tools to help enterprises satisfy consumer needs. Innovating processes requires a combination of skills, facilities and technologies to boost efficiency. When done right, it leads to cost and time savings without compromising the quality of products or services. 

Process innovations strive to increase performance. They occur internally and, therefore, are invisible to the customer. However, the outcomes are tangible and reflect how well an enterprise executed the innovation strategy.

Process Innovation: Improve the way of doing things and increase Productivity
Process Innovation: Improve the way of doing things and increase Productivity

What is process innovation example?

For example, a company can change the software used in the supply chain and delivery system. You can use PI to deliver new goods or improve on existing ones. Organisations can innovate processes in various areas, such as information systems, manufacturing and customer service. 

The main objective is to make sure that any alterations’ align with existing systems.

Process Innovation Example: Henry Ford’s Assembly Line

Henry Ford assembly line is the most common example of how to innovate processes. He used PI to develop the first moving assembly line. 

The main function of the assembly line was to make easily interchangeable automobile components that simplified the assembly process. It’s how the assembly line approach to fabrication came to be. 

In his innovation, Ford created a logical flow in the process by timing it. The moving assembly line used a chain mechanism to bring the work to the employees rather than have them moving around the car. 

Ford’s innovation saw vehicle assembly become less complicated, with the duration reducing from 12 hours to 90 minutes. The reduced production costs were reflected in the Model T in 1908, which came at a decreased price. This price increased the number of customers.

What is the importance of process innovation?

Business owners, managers and other stakeholders should know how innovating processes add value to justify the necessary investments.

Quality: Improved quality is one of the apparent benefits of PI. Changing various aspects of a company’s processes optimises product development. You can look at the areas that have been failing and come up with new approaches to remedy them. It’s how new processes lead to product innovation.

Customer Satisfaction: Better quality products and services boost customer satisfaction. Although the consumer is not privy to the innovations, the results can be felt. PI allows a company to create solutions that meet and perhaps exceed customer expectations. The more satisfied that consumers are, the more loyal they become.

Increase Productivity: Businesses can increase productivity through process innovations, which is why it can be a valuable investment. Improving methodologies and other systems can reduce the time it takes to complete tasks. So, workers can accomplish more in the same period or dedicate their saved time to other duties.

Process Modification and Process Reengineering

Enterprises should be aware that not every change qualifies as innovation. For a process modification or business process reengineering to count as innovative, it must produce a significant impact on KPIs.

Process innovation is a fundamental element of any successful enterprise. It allows companies to improve how they operate various systems, thus, increasing value. Although PI doesn’t get as much attention as other innovation types, it’s just as essential. Therefore, enterprises should craft concrete PI strategies that correspond with a company’s bottom line.

Process Innovation with Checkify

Checkify is a business process management software (BPMS) that allows you to document processes and create checklists for everyone to follow. Make sure the process runs perfectly every time. Reduce errors, increase productivity and continually improve business processes.

Track processes and tasks knowing exactly where everyone is within a process. Collaboration and allocation of checklists and tasks to the best people for the jobs.

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