FOCUS on PROCESS
INNOVATION
Presented by
Pavan kumar chiluka
-involves the implementation of a
new or significantly improved
production or delivery method
Types of innovation
• Incremental innovation projects, due to low
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levels of uncertainties, are usually follow the
orderly process:
A potential marketable improvement to an
existing product/service/process is quickly
placed within a clearly defined, time-tested
process designed to prove or disprove its value
to the company
The process has organizational sponsorship,
funding, and the assignment of a development
team
Development and commercialization are directed
along a formal phase gate process
• Radical innovation projects, due to high
levels of uncertainties, cannot be described by
this orderly process
General characteristics of the radical innovation life
cycle:
• long-term, highly uncertain and unpredictable
• sporadic - starts and stops, dead ends and
revivals
• nonlinear - detours, recycling back through
activities in response to discontinuities and
setbacks
• stochastic - waxing and waning of interest and
funding, key players come and go, priorities
change
Characteristics of innovative
projects
• Innovation projects tend to start with loosely defined,
sometimes even ambiguous objectives that become
clearer as the project proceeds. The processes used are
more experimental and exploratory and seldom follow
strict linear guidelines.
• Teams need to be more diverse and have a higher level
of trust as they explore new territory where failure is a
possibility.
• With failure as a built-in possibility, innovation teams are
more actively involved with risk management and need
to learn to fail fast and fail smart in order to move on to
more attractive options.
• Also, innovation projects generally need to be sold to
project sponsors and funding committees, a
responsibility usually not required from normal project
teams
PRODUCT Vs PROCESS
• Product innovation is a key factor for
successful market entry
• Process innovation helps securing a firm’s
market position given the characteristics
of its product supply
but both compliment each other for success
of the company
Indicators of process innovation
• Ask the question: why do we process this way?,
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if the answer is: because we have always done it
like this, then it is clear indication of need for
innovation
Think from the customer perspective
Look for the innovative ideas across the industry
and try possibilities
Check where the pain and frustration in a
business process which provide initiatives
Blockers of process innovation
• Many ideas originate from work floor, but these
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people are rarely asked about and if they do,
they are often discarded at middle level
Around the edges syndrome- executives keep
looking at the edges of the problem and not at
the heart
Black box syndrome- executives see their
processes as black box, they don’t know the
details, but somehow processes produce results
Process innovations in dairy
• assembly-line production of burfi, dahi, kheer,
shrikhand, gulabjamun, rasagollas, mishti doi
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and the like, by adapting the Western tools and
technology
The manufacture of khoa, using roller dryers
and other scraped surface heat exchangers
In Italy, Mozzarella cheese balls are being
packed in whey in consumer packs. This can be
tried to market rasagollas and gulabjamuns
Foreseeable Advantages of Process
Innovation
• meet the challenges of a changing world,
and to exploit the opportunities presented
by those changes
• Substantially improves effectiveness,
quality, flexibility and productivity
• Companies that innovate both product and
process consistently emerge at the top in
terms of profitability
• "Economic success comes not from
doing what others do well, but from
doing what others cannot do, or
cannot do as well." – John Kay
• http://www.innovationtools.com/Weblog/i
nnovationblog-detail.asp?ArticleID=303
• http://www.1000ventures.com/business_g
uide/innovation_radical_vs_incr.html
• http://www.emeraldinsight.com/Insight/Vi
ewContentServlet?Filename=Published/Em
eraldFullTextArticle/Articles/2300060506.ht
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