product innovation
Development of new products or the addition of new features to existing products
↳ but opportunities to attract new customers through product innovation are not endless
process innovation
Redesign of processes such that customers are drawn to buy the products or services that these processes generate
redesign motives
○ Poor process design
○ Organizational change
○ Environmental change
organizational entropy
measure of level of disorder in a business process since they gorw more complex overtime
Redesign elements
- Internal or external customers
- Business process operation
- Business process behavior
- Organization and the participants in the process:
○ Organization structure
○ Organization population - Information the process uses or creates
- Technology the process uses
- External environment
redesign approaches - 3 levels of abstraction
- highest level
- next lower level
- lowest level
redesign orbit
-Transactional methods: incremental solution of problems
-Transformational methods: breakthrough innovation
-Analytical methods: mathematical and quantitative focus
-Creative methods: rely on human creativity and ingenuity
-Inward-looking methods: insider’s perspective
-Outward-looking methods: outsider’s perspective
transactional methods
-7FE framework
-heuristic process redesign
transformational methods
-business process reengineering
-product based design
7FE framework
- prepare stage: collection of inputs
- generate stage: generation of redesign ideas
- validate stage
