Process Innovation

• The way activities are carried out in organization • Value chain provides a model through which this innovation can be seen • Direct selling model introduced by Amway, is a process innovation (representing distribution channel)

is also process innovation .e outsourcing activities not to a particular company but to a crowd or mass network of people.• Lean manufacturing in operations is a process innovation • Outsourcing of non core activities is again a process innovation • Crowdsourcing: i.

service ideas .• Crowdsourcing can span across various activities right from marketing to product idea inception to R&D to HR to finance • Some online companies operate on the crowdsourcing platform • Starbucks. crowdsource new product. Dell etc.

the activities throguh which . For example. in case of direct selling : dealers got eliminated • i. role and nature of players and firms involved in value network of a firm changes • They bring changes in financial structure of the organization – generally towards low cost • They impact technology used to do the work i.e.e.• Process innovation has three charactersitics • They involve change in value network.