It's Time To Get Serious About Process Innovation
It's time to get serious about process innovation.
While today's hyper-competitive world demands innovation in nearly every aspect of the business, process innovation offers some compelling advantages over product innovation and accordingly makes it a great place to start developing your innovation capability.
First and foremost, the probability of success is much greater because the only person or organization that has to buy into your innovation is you. With customer facing product and process innovation, even the best ideas still require the buy-in of your customers. With process innovation, that's not so. And if you developed the innovation internally, you've probably already done 75% of the work necessary to get the buy-in from the rest of the organization.
The return on investment in process innovation is also easier to estimate beforehand and measure afterwards. When innovation is used to take elevate an existing process to the next level (jumping to the next S-curve), you know what it was costing you before, and after. With product innovation, you can never be quite sure unless you are introducing entirely new products. And estimating the potential for new product or service innovation is really a crap shoot.
Process innovation generally delivers results faster than product or service innovation, too.
And finally, all of the new skills the organization will develop by focusing on process innovation will translate into product and service innovation. They're really two birds of the same feather-one is just easier to get started with, than the other.