Process Innovation and Value Chain Management

Abstract

Process innovation is a chain of activities designed to reduce the costand time of manufacturing a product or delivering a service with thedesired quality and competitive advantage. The most challenging issue inprocess innovation and improvement is identifying the redundancies inthe manufacturing or services delivery process and eliminating them toreduce the cost and time involved in the process of generating the finaloutput. Therefore, it is essential for managers to understand theprocess at work and find a critical path to optimize the time and costof carrying out an innovation. The relevant executives can design anefficient process to improve workable ideas that will make a realdifference to the organization as they move the innovation into themarketplace. This chapter discusses the capabilities and competencies ofcompanies in carrying out process innovation and value chain management,and analyzes the process outcome and focus. The chapter also addressesvarious issues referring to managing process improvements, anddeveloping an innovation value chain.