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Process Innovation: Types & Examples

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Instructor: Beth Hendricks

Beth holds a master's degree in integrated marketing communications, and has worked in journalism and marketing throughout her career.

Looking for an easier, more sustainable way to do things? Set your sights on process innovation. In this lesson, you'll learn more about companies who have innovated not only their field, but others, and what process innovation means. Updated: 02/08/2021

What Is Process Innovation?

Process innovation is a new or significantly improved way of doing things in a business that typically increases production levels and decreases costs. Process innovation might come in the form of new processes or techniques, new equipment, or software.

Imagine you're a small business owner with several stores, a headquarters that houses your administrative offices, and a small warehouse. What types of process innovations would you envision to make your business better? It could range from a more effective way to deliver payroll checks to a simpler method of store ordering to a more streamlined way to move things inside your warehouse.

The process of innovating new solutions could fall into one of these areas:

  • Production: This is where you'd find processes, equipment, and technology to enhance manufacturing or production processes. This includes computer software to aid in production design and development or new equipment that makes a process run more efficiently or effectively.

  • Delivery: Delivery process innovations involve tools, techniques, and software solutions to help in supply chain and delivery systems. Barcodes, tracking systems, or shipping software would be useful innovations in this category.

  • Support services: Innovations in processes aren't limited to simply production or delivery, but also areas including new product development, purchasing, maintenance, and accounting. If it is a business process, innovative solution could be pursued or developed to improve methods and deliver better results.

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Benefits of process innovation could include all of the following EXCEPT which?

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