innovation new

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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