³We know where most of the creativity, the innovation, the stuff that drives productivity lies in the minds of those closest to the work´ Jack Welch You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new.

Steve Jobs

It is a one. but a continuing response to changing circumstances.off event. ‡ It helps to:Enhance speed of operations and customer responsiveness Reduce cost position of firms relative to competitors. Incorporate product features Increase flexibility of workplace.MEANING ‡ Innovation is the conversion of knowledge into new products and services. .

improve efficiency. in turn. and increase employee job satisfaction. . affect the design of work. organisational structure and processes. improve productivity.Why Process Innovation? ‡ Process innovations increase bottom-line profitability. They also deliver enhanced product or service value to the customer. reduce costs. ‡ Process innovations enable firms to introduce changes in the value chain that.

‡ Software-dominant process innovations may require a firm to create not only new skills but also new attitudes and mindsets among its employees. ‡ Hardware-dominant process innovations infuse a higher level of technology in terms of equipment or other physical characteristics.‡ Process innovations may be either hardware dominant or software dominant. .

lower processing time. etc ‡ For improving ease in manufacturing ‡ For reducing health hazards and improving safety of workers .FACTORS ‡ New/improved/hybrid technologies may facilitate development of new and efficient processes ‡ For improving process efficiency and productivity through lower processing costs. lower process consumption wastages.

computerisation and automation. counseling. setting targets and goals.Steps in Process Innovation ‡ Proper Planning as to focus of innovations. seeking their participation in process innovation through communication. deciding timeframe of commercialisation. ‡ Pilot run of the new process ‡ Observations and improvements in the new process based on feedback from pilot testing . etc. training and rewards. production and maintenance department ‡ Select a small team of operators and workers. etc ‡ Creating a multifunctional team of technical. decisions relating to mechanisation.

‡ For manufacturing companies. and services that are sold with those products. process innovations enable them to introduce "front office" customer service improvements and add new services. . quality. ‡ For service companies. or time-to-market. process innovation include such things as integrating new production methods and technologies that lead to improved efficiency.Focus Areas ‡ Process innovations focus on building an adaptive business process management system (BPMS).

New technologies change the way in which firms actualize the primary value chain activities. can be used to change the conduct of secondary value chain activities. . Process innovations. 2. For example. have generated Doit-yourself marketing research that threatens the job of researchers. Thus. advances in tech. process innovations can be employed to restructure major functions such as manufacturing.SIGNIFICANCE OF PROCESS INNOVATIONS 1. especially in Information technologies. marketing or R&D.

. by outsourcing or insourcing of value chain activities. reconfigure the value constellation. i..e. For example.3. automobile firms have realised that outsourcing component manufacture is more cost-effective than manufacturing the component in-house. Process innovations also enable firms to redefine their scope . as technologies have matured.


‡ Developing Process Charts for studying conceptual framework of process flow. ‡ Time study for comparing time taken for various operations and tasks . ‡ Value Engineering and Analysis .Tools for Process Innovation ‡ Developing Assembly Charts for studying conceptual framework of material flow. Computer Simulation. ‡ Computer Aided Designing (CAD).

‡ ‡ ‡ ‡ Business Process Reengineering Benchmarking Using Change management strategies Financial appraisal .

‡ Executives keep ³looking at the edges´ of the problem and not at the heart ± solving symptoms rather than the cause. innovation is limited to bringing in new technology rather than addressing the fundamental issues. or do not want to. . discuss efficiency and effectiveness. For most of these organizations. or ask the tough questions.Blockers For Process Innovation ‡ ³Around the edges´ syndrome ± where the processes and associated people are treated like sacred objects: They cannot.

as they could be (quality and rework are not measured). . The executives have a feeling that these processes may not be as efficient.‡ ³Black box´ syndrome ± where executives see their processes as a ³black box.´ They don¶t know the details. but somehow the processes produce outcomes. and fixing a problem is tough when you do not understand it. but at least the processes work and the executives are afraid to change anything because change might disrupt these fragile ³black box´ processes. or as effective.

Royal Selangor Visit Centre. Malaysia .

It is based in Setapak.Brief History y Founded in 1885 by Yong Koon. Royal Selangor is the world¶s foremost name in quality pewter . copper and antimony. This is transformed into an endless variety of home ware and gifts sold in more than twenty countries around the world. y Royal Selangor coincides with the remarkable development of tin mining in the Malay peninsula in the 1800s. Kuala Lumpur with a workforce of more than 300 crafts persons. . this versatile alloy of tin.


we where taken to the showroom which displayed all the Jewellery. y At last. y Then we were shown the factory where we had an hands-on experience of chasing technique using pewter. where we were firstly taken through the exhibition centre. . crockery and other souvenirs made of pewter.OUR EXPERIENCE y We experienced a guided tour at the Royal Selangor visit centre . y We where also made to taste a cold drink in glasses made of pewter in which the drink remains cold for more than 15 minutes.

CHASING An ancient metalworking technique. chasing is the process of decorating the surface of the metal by indenting and raising the design with the use of punches and a hammer. Unlike engraving and piercing. there is no loss of metal in chasing as it does not cut into the metal. .

Also has a café in a comfortable space surrounded by greenery.Learning's for Process Innovation y The company focuses on making first its prospective customers y y y y y y y understand pewter as a product and then experience its qualities by touching and being a part of the production process. It has a vast Beer tank which can store more than 500 liters in quantity and is listed in gunnies book of world records. The company has positioned its plant as a visit centre and is a major tourist attraction. . It offers a free shuttle service from all leading hotels in Kuala Lumpur. It offers pewter products through various price ranges and in different qualities. Enroll in the school of Hard Knocks and enjoy half an hour workshop in pewtersmithing. Example shows how the company is positioning its ancient Metal work techniques to the tourists through its Visit centre and other innovative Ideas to attract more people and hence revenue for the company.

The Toyota Production System (TPS) has attempted to eliminate waste. timing and occurrence.TOYOTA. THE FAMOUS Japanese carmaker has been a master of process innovation. Just In Time Kanban . reduce costs and respond quickly to changing customer needs. Constant learning has been an integral part of the TPS. sequence. Toyota specifies all jobs clearly in terms of content.

This opportunity is at the core of the concurrent engineering phenomenon in product development. Sequential: Geographical:A key benefit of IT. IT can make the decision-making process more efficient and effective IT can enable changes in the sequence of processes or transform a process from sequential to parallel in order to reduce process cycletime. Analytical: In processes that involve analysis of information.Using Information Technology to drive process innovation Informational:IT can be used within a process to capture information about process performance. This information can then be analyzed to improve the process. IT is playing an important role in this regard. Global companies are increasingly realizing the importance of seamless and consistent process execution around the world. has been the ability to overcome geographical barriers. .

for an innovation driven company. Cultural factors play a key role while implementing process innovations. In general. Work teams provide opportunities for small talk. less hierarchical communication. involves the use of cross-functional teams. it is desirable to have a cultural shift in favour of greater empowerment and participation in decision-making and more open. Structure also determines how activities are controlled and the reporting relationships. Such teams facilitate functional interfaces and parallel design activities. process-oriented behaviors. structure plays an important role in process innovation. . development of friendships and empathic reactions from other employees.Organizational enablers Organizational enablers of process innovation fall into two categories: Structure Culture By grouping activities together. One of the most powerful structural changes that can facilitate new.