5.5 Process innovation

	Processes are planned in response to new facilities, mew products, new technologies, new markets, or new customer expectations.
	Processes should be analyzed for improvement on a continuous basis.
	When continual improvement efforts have been exhausted and performance expectations still cannot be reached with an existing process, it is time to completely redesign or innovate the process.
	Process innovation projects are typically chartered in response to a breakthrough goal for rapid, dramatic improvement in process performance.
	PERFORMANCE IMPROVEMENT OF 50 TO 100% within 12 months is common.
	In order to achieve spectacular results, an innovation team is encouraged to start with a clean sheet of paper and rethink all aspects of a process, from its purpose to its outputs, structure, tasks, and technology.
	Figure 5.9 shows the relationship between continuous improvement, breakthrough improvement, and process innovation.

5.5 Process innovation

	Process innovation is most successful in organizations that can view their system as a set of processes providing value to the customer, instead of functional areas vying for limited resources.
	Figure 5.10 shows this change from a process orientation.
	In an environment of rapid change, the ability to learn faster, reconfigure processes faster, and execute processes faster is a competitive advantage.

Figure 5.10: From function to process.

5.5 Process innovation

Steps in process innovation

	Figure 5.11 outlines the innovation process.
	Let's review the process step-by-step.
	The initial step establishes the goals for process performance.
	Data from the existing process are used as a baseline to which benchmarking data on best industry practices, customer requirements data, and strategic directives are compared.
	Analyzing the gap between and desired performance helps to determine whether the process needs to be redesigned.
	If redesign is necessary, a project team is chartered and provided with the preliminary analysis and resulting goals and specifications for process performance.
	Although the goals for a process may be specific, the specifications are not (or else the creativity of the group is hampered).
	It is important that the project team be convinced that total redesign of the process is absolutely necessary to achieve the performance objectives.

5.5 Process innovation

	A useful tool in beginning the redesign of a process is a high-level process map.
	Pared to its simplest form, a high-level map contains only the essential building blocks of a process.
	As shown in Figure 5.12, it is prepared by focusing on the performance goal-stated in customer terms-and working backward through the desired output, subprocesses, and initial input requirements.
	Design principles, such as performing subprocesses in parallel whenever possible, help to structure the map efficiently.
	Table 5.3 lists several additional principles recommended for process innovation.
	Innovation ideas can challenge the conventional ordering of subprocesses, or the need for a subprocess.
	Table 5.4 presents various techniques to prompt innovative thinking.

5.5 Process innovation

Figure 5.12: A high-level process map

	After the general concept of redesign is agreed on, a detailed map is prepared for each subprocess or block in the high-level map.
	Blocks are added only if an activity can contribute to the output goal.
	The existence of each block or activity is challenged: Does it add value for the customer? Does it have to be done? Could it be done more quickly, more easily, or sooner? Could someone else do it better?

5.5 Process innovation

	A detailed map guides decisions on allocation of resources and work methods.
	To guarantee that the detailed map will produce the desired results, key performance are determined and set in place.
	The model is also validated through simulation, interviewing and partial testing.
	When the team is satisfied that the performance objectives can be reached with the new design, a pilot study is conducted.

Table 5.3: Principles for redesigning processes.

5.5 Process innovation

	Process innovation is not like other projects, which can be carefully planned flawlessly executed.
	Innovation is by definition something new and untested.
	Milestones, costs, and benefits are guesses at best.
	A pilot study allows the team to try, see if it works, modify it, and try again.
	After a successful pilot study, full-scale implementation can begin.
	Since process innovation involves radical change, the transition period between introducing the changed process and the incorporation of the new process into day-to-day operations can be difficult.
	The redesigned process may involve changing the way executives manage, the way employees think about their work, or how workers interact.
	The transition needs to be managed with a special concern for the "people" aspects of change.
	The innovation process is complete when the transition has been weathered and the new process consistently reaches its objective.
	The concept of process innovation emerged in response to rapid changed in technology that rendered existing processes obsolete.