Successful innovation and implementation of new processes

Abstract

When we talk of innovation we tend to think of new products, but successful innovation of processes can also lead to a company gaining significant competitive advantage. A good example is to be found in the recent book, The Machine that Changed the World, by Womak et al (1990). The machine in question is process technology and the book's argument is that process innovations which they aggregate as ‘lean production’ are responsible for the level of performance of the Japanese car industry. On the other hand many expensive investments in the latest Flexible Manufacturing Systems have worked, but have sometimes been less flexible than the processes that they replaced! Why is it that one firm can adopt a new production process and gain real benefits, and another can adopt the same new process; invest heavily in equipment and installation, yet not be able to achieve any benefit? This important question has been addressed in a series of recent research programmes undertaken at London Business School. This article examines some of what we and others have learnt about the successful and unsuccessful use of new process technologies. In addition it will argue that management of innovation of processes must cover the whole life cycle of its innovation and adoption, and in particular should include implementation.

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