Welcome to the second post in a three-part series on innovation. In the first post, I discussed Product Innovation: Shaping the World as We Know It. Now, I’m going to dive deeper into process innovation and explore its transformative power for businesses.

Process is a sneakier type of innovation. While product innovation may seem more cool and attention-grabbing, process innovation is just as critical to a company's success. It involves making improvements to internal operations and workflows, streamlining processes, and enhancing efficiency. This type of innovation may not be as immediately visible to the public, but it can have a significant impact on a company's bottom line.

In this post, we'll explore the benefits of process innovation and share examples of companies that have successfully implemented it. By the end, I hope to show you that process innovation is anything but bland - it's a powerful tool that can revolutionize the way companies work.

Finding the Hidden Potential

From the company’s perspective, process innovation allows the business to get the most out of its systems and employees. Well-designed processes ensure that resources are not wasted.

Process innovation has a hidden value proposition: unlocking potential.

What do I mean by that? Well, for example, any given system can be optimized. Remove the barriers, establish a good flow, and allow better results to take over. While the process in use may be optimized, this does not mean that the process itself is the best choice.

Imagine that you are trying to get from New York to Los Angeles. You map out a route. You figure out the best roads to take that are direct yet scenic. You avoid toll roads and highways that go through the heart of major cities. You’re ready to rock.

You get there after a beautifully optimized road trip only to find that another person beat you even with your maximally efficient plan. How’d they do it? Well, they took an airplane. They also got cool views, perhaps got luxurious first class service, and were able to sleep along the way, too!

My point is that just because a system is optimized does not mean it’s the best system. Better processes can always be found, even if they must be created.

The Status Quo Trap

In many cases, the status quo is the limiting factor. Both individuals and organizations tend to stick to what they know works because it produces results. But that doesn’t mean there isn’t a better way to produce those results.

Thinking outside the box is a hallmark of innovation, and process innovation is the crown jewel of that.

Instead of sticking to the status quo, stick it to the status quo!

In a previous post, The 3 Types of Innovation: Product, Process, & Business Model, we brought up the example of Henry Ford and the assembly line. While the traditional methods (status quo) of car manufacturing were able to produce cars, Ford recognized the opportunity to improve a specific metric in the industry: manufacturing time.

And like other great innovators and thought leaders, he thought to himself, “There must be a better way!”

The Customer’s Side of Things

Process innovation is not solely focused on improving a company's internal systems; it also benefits the customer. When a business improves its processes, it can better meet the demand of its customers and exceed their expectations.

Improved processes often lead to faster production and delivery times, which significantly contributes to customer satisfaction. Additionally, better quality control systems can be put in place to ensure consistently high-quality products. By freeing up resources, such as capital and employee time, businesses can redirect their efforts towards further innovation and development.

Although these benefits of process innovation are indirect, customers are sure to notice and appreciate the improvements.

How to Implement Process Innovation

Let me go over a quick framework that you can use to jumpstart process innovation, whether that’s in your day-to-day life or for your company.

1. Figure out the metric you want to improve. For Henry Ford, it was manufacturing time. Decide what it will be for you. Keep in mind that this is subjective and there’s no right answer.
2. Map out the factors. For every metric, there are several determining causes or inputs to the system that produce or affect the quantifiable output. What are they for your metric?
3. Ask constraining questions. Consider the factors you've identified and ask yourself questions that encourage innovative thinking, such as:
4. How can I do this in a third of the time?
5. How can I get the same results with 10% of the current cost?
6. How do I maintain quality with fewer employees overseeing the process?
7. Try things. You now have lots of new ideas from which you can form a new plan that is specific to your company.
8. Iterate. It’s probably not going to be revolutionary the first time. People will have to adjust. You may have to account for a few new things. But, you can be on your way toward a new and improved set of processes.

Turn on Your Innovation Mindset

Process innovation unleashes the potential of a company and its workforce, enabling them to work in extraordinary ways. But the benefits don't stop there. Customers also benefit from the ripple effects of process innovation.

Embrace the mindset of process innovation, and explore how you can apply this type of innovation in your own life or business. Practice the attitude of, “There has to be a better way!”