"Process innovation means the implementation of a new or significantly improved production or delivery method (including significant changes in techniques, equipment and/or software)" (http://www.innoviscop.com/en/definitions/process-innovation).
A method used to improve production is Total Quality Management (TQM).
“TQM takes a holistic approach to long-term success that views continuous improvement in all aspects of an organization as a process and not as a short-term goal. It aims to radically transform the organization through progressive changes in the attitudes, practices, structures, and systems.
“TQM takes a holistic approach to long-term success that views continuous improvement in all aspects of an organization as a process and not as a short-term goal. It aims to radically transform the organization through progressive changes in the attitudes, practices, structures, and systems.
Total quality management transcends the product quality approach, involves everyone in the organization, and encompasses its every function: administration, communications, distribution, manufacturing, marketing, planning, training, etc.” (http://www.businessdictionary.com/definition/total-quality-management-TQM.html).
TQM (as the quote states) involves everyone in the company, to ensure everything is done to the best of the company’s abilities, this is good because it increases employee involvement in independent tasks, and also gives the workforce responsibility.
An implication of using TQM is the attention to detail and potentially strict requirements, can take more time, staff may even refute the idea of TQM if they feel it is too time consuming – this highlights the importance of keeping your workforce engaged.
An implication of using TQM is the attention to detail and potentially strict requirements, can take more time, staff may even refute the idea of TQM if they feel it is too time consuming – this highlights the importance of keeping your workforce engaged.
However, TQM is an evolutionary process rather than a revolutionary one, it does not happen over night but provides long-term benefits in product quality.
An example of successful process innovation is the Coca Cola brand and their 100% recyclable plastic bottles.
The named ‘plant’ bottle is made from a Brazilian sugar cane and is now 100% recyclable; each bottle is made from 22.5% from plant-based PET plastic and 25% recyclable plastic in the UK. (Http://www.coca-cola.co.uk/environment/plantbottle/coca-cola-sugarcane-partnerships.html).
This method of production has provided many benefits for the brand, rather than making more money, they actually save themselves billions of dollars every year by using recycled materials and reducing their carbon footprint.
The ‘Open Innovation’ Model displayed in my previous blog entry could be used to help understand how Coca Cola came to improve their production method.
Coca cola collaborated with WWF to discover a new source of renewable raw materials to make their ‘plant bottle’.
“We teamed up with leading academic and NGO partners (non-governmental organizations, such as WWF) to search for a sustainable plant source to make our Plant Bottle plastic one that wouldn’t harm the ecology or people of the region where it’s produced.” (http://www.coca-cola.co.uk/environment/plantbottle/coca-cola-sugarcane-partnerships.html).
WWF could be considered a ‘node’ in coca cola’s open innovation matrix, by communicating with an external source they were able to reduce the risk factor in developing the new packaging and as a result they haven’t harmed the ecology or the people in the region where they buy the sugar cane.
Moreover this example also reinforces the relevance of the ‘Factors of innovative success’ table and the benefits of working with external organizations.
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