1. Managing Quality, Innovation and Knowledge
Process Innovation

2. Process Innovation Importance of process innovation
Technology and process innovation
Process innovation
Organization and process innovation

3. Importance of Process Innovation
Improvements in quality, reductions in costs, lead to Improved Competitiveness
e.g. Korean electronics industry
New processes lead to the creation of new business models
e.g. New business models in the finance industry

4. Technology and Process Innovation
Applications of new generic technologies
Applications of new industry specific technologies
paint-technology

5. Process Innovation

6. Process Innovation

7. Process Innovation The Innovation Process -- Six Stages
Stage 1: Generate Ideas
Stage 2: Capture Ideas From The First Stage
Stage 3: Begin the Innovation
Stage 4: Develop a Business-Effectiveness Strategy
Stage 5: Apply Business Improvement
Stage 6: Decline

8. Process Innovation Process innovations are hard to patent
Process innovations are protected by secrecy as processes are not visible to customers or competitors

9. Organization and Process Innovation
New forms of organization

10. New forms of organization
The World is changing rapidly and so are the world’s businesses
Old economy (Weight)
Information gets collected locally, access is restricted
Isolation
Growth and expansion is slower
Manufacturing
First mover’s advantage lasts longer

11. New forms of organization
New Economy (Speed)
Information travels fast and wide
Globalization
First mover’s advantage is a small window
Technology
You can lose your intellectual advantage very quickly
Knowledge

12. New forms of organization
Our Needs from structure have changed
The old world’s needs from structure
Stability
Rigidity
Strength
Productivity
Efficiency
What the new world needs
Flexibility
Adaptability
Ability to evolve and change

13. New forms of organization
New organizational forms proposed literature
Post-bureaucratic and post-modern organization
Pre-engineering corporation
Virtual organization
Boundary-less company
Network organization
Modular organization
Fractal and modular factories
Atomized organization
High-performance or high-commitment work system
The Ambidextrous organization
Distributed knowledge system
Learning organization
Collaborative organization

14. New forms of organization

15. New forms of organization
Enterprise Social Networks
How organization’s networks are structured will determine how the enterprise responds to external stimuli
Is the organization trying to fight non-linearity with linear structures?
Is the enterprise finding it difficult to innovate despite the best intentions? Form will define behaviour…
Innovative organizations will design their structures to maximize benefits from network effects

16. Innovation and Human Capital
Applications of knowledge and skills
Knowledge is the theoretical or practical understanding of a subject
Skills are the proficiencies developed through training or experience
Abilities are the qualities of being able to do something.

17. Innovation and Human Capital
Communities of practice

18. Communities of practice

19. Process Innovation Additional Readings:
Liu, H (2012). ‘Study on industrial generic technology R&D organization model based on the background of collaborative innovation’. System Science, Engineering Design and Manufacturing Informatization (ICSEM), third international conference. vol.2, no., pp.253, 257, Oct. 2012
doi: /ICSSEM
URL: