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8/6/2019 Innovation New
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8/6/2019 Innovation New
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We know where most of the creativity, the innovation,
the stuff that drives productivity lies in the minds of those
closest to the workJack WelchJack Welch
You can't just ask customers what they want and thentry to give that to them. By the time you get it built,
they'll want something new.
Steve JobsSteve Jobs
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MEANING
Innovationisthe conversionofknowledgeintonew
productsandservices. Itisaone- offevent, buta
continuingresponseto changing circumstances.
Ithelpsto:- Enhancespeedofoperationsand customer
responsiveness
Reduce cost positionoffirmsrelativeto competitors.
Incorporate productfeatures
Increaseflexibilityofworkplace.
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Why Process Innovation?
Processinnovationsincrease bottom-lineprofitability,reduce costs,improveefficiency,
improve productivity,andincreaseemployee
job satisfaction. Theyalsodeliverenhancedproductorservicevalue to the customer.
Processinnovationsenablefirmstointroduce
changesinthevalue chainthat,inturn,affect
thedesignofwork,organisationalstructure
and processes.
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Processinnovationsmay beeitherhardware
dominantorsoftwaredominant.
Hardware-dominantprocessinnovations
infuseahigherleveloftechnologyintermsof
equipmentorotherphysical characteristics.
Software-dominantprocessinnovationsmayrequireafirmto createnotonlynewskills but
alsonewattitudesandmindsetsamongits
employees.
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FACTORS
New/improved/hybridtechnologiesmayfacilitatedevelopmentofnewandefficient
processes
Forimproving processefficiencyand
productivitythroughlowerprocessing costs,
lowerprocessingtime,lowerprocess
consumptionwastages,etc
Forimprovingeaseinmanufacturing
Forreducinghealthhazardsandimproving
safetyofworkers
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Steps in Process Innovation ProperPlanningastofocusofinnovations;decisions
relatingtomechanisation, computerisationand
automation;settingtargetsandgoals;deciding
timeframeofcommercialisation,etc
Creatingamultifunctionalteamoftechnical,
productionandmaintenancedepartment
Selectasmallteamofoperatorsandworkers,seeking
theirparticipationin processinnovationthrough
communication, counseling,trainingandrewards,etc. Pilotrunofthenew process
Observationsandimprovementsinthenew process
basedonfeedbackfrom pilottesting
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Focus Areas
Processinnovationsfocuson buildinganadaptivebusiness processmanagementsystem (BPMS).
Formanufacturing companies, processinnovation
includesuchthingsasintegratingnew production
methodsandtechnologiesthatleadtoimprovedefficiency,quality,ortime-to-market,andservices
thataresoldwiththose products.
For service companies, processinnovationsenable
themtointroduce "frontoffice" customerservice
improvementsandaddnewservices.
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SIGNIFICANCE OF PROCESS INNOVATIONS
1. Newtechnologies changethewayinwhichfirmsactualizethe primaryvalue chain
activities. Thus, processinnovations can be
employedtorestructuremajorfunctionssuchas
manufacturing,marketingorR&D.
2. Processinnovations,especiallyinInformation
technologies, can beusedto changethe conduct
ofsecondaryvalue chainactivities. Forexample,advancesintech. havegeneratedDo-
it-yourselfmarketingresearchthatthreatensthe
job ofresearchers.
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3. Processinnovationsalsoenablefirmsto
redefinetheirscope,i.e.,reconfigurethe
value constellation, byoutsourcingorin-
sourcingofvalue chainactivities. For
example,astechnologieshavematured,
automobilefirmshaverealisedthatoutsourcing componentmanufactureismore
cost-effectivethanmanufacturingthe
componentin-house.
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Tools for Process Innovation
Developing AssemblyChartsforstudyingconceptualframeworkofmaterialflow.
DevelopingProcessChartsforstudying
conceptualframeworkofprocessflow. ComputerAidedDesigning (CAD),Computer
Simulation.
Timestudyforcomparingtimetakenforvariousoperationsandtasks .
ValueEngineeringand Analysis
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BusinessProcessReengineering
Benchmarking
UsingChangemanagementstrategies
Financialappraisal
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Blockers For Process Innovation
A
roundthe edges syndrome
wheretheprocessesandassociated peoplearetreatedlike
sacredobjects: They cannot,ordonotwantto,discussefficiencyandeffectiveness,oraskthe
toughquestions. Executives keep lookingattheedgesofthe
problemandnotattheheartsolvingsymptomsratherthanthe cause. Formostofthese
organizations. innovationislimitedto bringinginnewtechnologyratherthanaddressingthefundamentalissues.
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Black box syndrome whereexecutivesseetheirprocessesasa black box. They
dont knowthedetails, butsomehowtheprocesses produceoutcomes. Theexecutiveshaveafeelingthatthese processesmaynot beasefficient,oraseffective,asthey could be(qualityandreworkarenotmeasured), butatleastthe processesworkandtheexecutivesareafraidto changeanything because change
mightdisruptthesefragile black boxprocesses,andfixinga problemistoughwhenyoudonotunderstandit.
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Royal Selangor Visit Centre, Malaysia
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Brief History
y Founded in 1885 by Yong Koon, Royal Selangor is the
worlds foremost name in quality pewter, this versatile alloy
of tin, copperand antimony. This is transformed into an
endless variety of home ware andgifts sold inmore than
twenty countries around the world.
y Royal Selangorcoincides with theremarkabledevelopment
of tinmining in the Malay peninsula in the 1800s. It is
based in Setapak, Kuala Lumpurwith a workforceofmore
than300 crafts persons.
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OUR EXPERIENCE
y Weexperienced a guided touratthe Royal Selangorvisit centre,where we were firstly takenthrough theexhibition centre.
y Then we were shown the factory
where we had an hands-onexperienceof chasing techniqueusing pewter.
y We where alsomade to taste acolddrink inglasses madeofpewter in which thedrinkremains
cold formore than 15 minutes.y At last, we where taken to the
showroom which displayed all theJewellery, crockery andothersouvenirs madeof pewter.
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CHASING
Anancientmetalworkingtechnique, chasingisthe process
ofdecoratingthesurfaceofthemetal byindentingand
raisingthedesignwiththeuseofpunchesandahammer.
Unlikeengravingand piercing,thereisnolossofmetalinchasingasitdoesnot cutintothemetal.
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Learning's forProcess Innovation
y The company focuses onmaking first its prospective customersunderstand pewteras a product and thenexperience its qualities by
touching and being a part of the production process.
y It offers pewterproducts through various priceranges and indifferent
qualities.
y
Enroll in the school of Hard Knocks andenjoy half an hourworkshop inpewtersmithing.
y It offers a free shuttle service from all leading hotels in Kuala Lumpur.
y It has a vast Beertank which can storemore than 500 liters in quantity and
is listed in gunnies bookof worldrecords.
y Also has a caf in a comfortable space surrounded by greenery.y The company has positioned its plant as a visit centre and is a majortourist
attraction.
y Example shows how the company is positioning its ancient Metal work
techniques to the tourists through its Visit centre andother innovative Ideas
to attract more people and hencerevenue forthe company.
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TOYOTA, THE FAMOUS Japanese carmakerhas been a masterof process
innovation.
The Toyota Production System (TPS) has attempted toeliminate waste,reduce
costs andrespond quickly to changing customerneeds.
Toyota specifies all jobs clearly in terms of content, sequence, timing and
occurrence.
Constant learning has been an integral part of the TPS.
Just In Time
Kanban
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Using Information Technology to
drive process innovation
Informational:IT can beused within a process to capture information about process
performance. This information can then be analyzed to improve the
process.
Analytical: In processes that involve analysis of information, IT canmake the
decision-making process moreefficient andeffective
Sequential: IT canenable changes in the sequenceof processes or transform a
process from sequential to parallel inorder toreduce process cycle-
time.This opportunity is at the coreof the concurrent engineeringphenomenon in product development.
Geographical:A key benefit of IT, has been the ability toovercomegeographical
barriers. Global companies are increasingly realizing the importance
of seamless and consistent process execution around the world. IT
is playing an important role in this regard.
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Organizational enablers
Organizational enablers of process innovation fall into two categories:
By grouping activities together, structure plays an important role in process innovation.Structure alsodetermines how activities are controlled and thereportingrelationships.
Oneof themost powerful structural changes that can facilitatenew, process-oriented
behaviors, involves theuseof cross-functional teams. Such teams facilitate functional
interfaces and parallel design activities. Work teams provideopportunities forsmall talk,
development of friendships andempathic reactions fromotheremployees.
Cultural factors play a key role while implementing process innovations. Ingeneral, for
an innovationdriven company, it is desirable to have a cultural shift in favourofgreater
empowerment and participation indecision-making andmoreopen, less hierarchical
communication.
Structure Culture
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