Process innovation: requirements and opportunities

Abstract

Purpose. The purpose is to assemble the list of the most important requirements and opportunities of process innovation through the analysis of the main and most recent scholarly developments related to the study of process innovation. Design/Method/Approach. Systematic literature review. Theoretical implications. In outlining the requirements and opportunities of process innovation, this article builds a foundation for understanding process innovation and an introduction to terms and ideas related to process innovation. From such foundation, scholars can further develop the study of process innovation and the understanding of the main factors that contribute to its success. Practical implication. Process innovation is linked to a high failure rate (between 50% - 80%), which acts as a deterrent for many managers and companies. Through understanding the requirements and opportunities of process innovation, managers can intelligently decide whether it is best for their company to pursue or avoid process innovation. Originality/Value. Articles have shared, in small parts, the requirements and opportunities of process innovation, but this article is original due its listing of the most important requirements and opportunities of process innovation. Research limitations/Future research. This article shares the requirements and opportunities of process innovation, but it does not rank or list either the requirements or opportunities based on their importance to process innovation. Additionally, this article does not quantitatively assess the requirements and opportunities importance to process innovation. Future research can rank the requirements and opportunities of process innovation based on their contribution to the success and/or failure of process innovation within a firm or an industry. Paper type – conceptual.

The Role of Business Model Innovation in the IT Services Sector: a Comprehensive Mapping Review

“…Process innovation places greater emphasis on internal processes and optimization of operational efficiency. This involves implementing trainings and developing IT competencies to improve process innovation activities within organizations (Köhne & Sawyer, 2018). On the other hand, business model innovation extends beyond internal operations to reshape value propositions, revenue streams, and customer relationships (Farida et al, 2022).…”

“…These technologies have the potential to revolutionize processes by automating tasks, improving data transparency, and enhancing decision-making. Investment in technology and capabilities is essential for process innovation (Köhne & Sawyer, 2018). Organizations must allocate resources to acquire and implement necessary tools and systems.…”

“…Developing IT competencies is crucial to improving process innovation activities and ultimately enhancing overall company performance. By aligning IT strategies with process innovation goals, organizations can unlock new opportunities and gain a competitive edge in the market (Köhne & Sawyer, 2018).…”

Framework for Measuring Process Innovation Performance at Indonesian State-Owned Companies

“…Milewski et al [65] provided a functional design for the process innovation life cycle that includes: (1) ideas-the initial stages of the emergence of innovation object process candidates triggered by performance gaps related to the process; (2) adoption-activities to facilitate innovation by determining investment decisions; (3) preparation-technology development and organizational change planning; and (4) installation-the implementation of the process including the setting of technology and the introduction of organizational change. Success in each stage of the innovation process is highly dependent on the suitability of technology, knowledge assets, and human capital capabilities [66]. In addition, other factors can also have an impact on the implementation of process innovation, such as time availability [67], the accuracy of a company's strategy [68], and an organization's willingness to make changes [69,70].…”

Innovation of New Product Development Process: A Case Study of Healthy Drink-Based Product Line in Indonesia’s Company

“…The companies should make efforts so that the ability of intrapreneurship and entrepreneurship of the figure can be transmitted to other employees. Kohne & Sawyer (2018) described that the main reason can be attributed failure of NPD innovation process is: communication barriers between functional departments. An organization has to make sure that the regarding departments interact efficiently with each other.…”