Many people equate innovation with product innovation or market innovation. While these are important, another innovation that is equally important has been overlooked. This innovation is operational innovation. Good leaders are here to train and mentor other leaders.
Focus on business processes
The idea is simple - you only focus on a few important value-added business processes and achieve breakthrough improvements. At Schneider Electric, it first created a business process model that described the operations of the business based on a small amount of end-to-end process that creates value. These processes include developing transportation solutions, acquiring new business [ANB], acquiring transportation orders, moving freight, and providing transportation capabilities. These processes cover almost everything that Schneider's thousands of employees do. By defining the "Get New Business" [ANB] process, setting its limits, determining its metrics and making it an improvement goal, Schneider specifically defines the problem to be solved.
Missed the opportunity
Most companies' innovation work is too narrow, so only incremental improvements can be made. For the first time, Schneider conceptualized this work purely in preparation for the proposal, thereby eliminating many of the groups and activities related to the larger goals of acquiring new business. By focusing on the entire ANB process for the second time and drawing conclusions from eight different departments and many different activities, the Schneider team can solve the various problems that lead to slow customer response.
Schneider's operational innovations have thus resulted in a new and powerful way to access new businesses. For anyone familiar with business-to-business sales, regardless of their department, the advantage of concentrating all knowledgeable people behind new business acquisitions will be obvious.
Innovative operation
Think of a business as a set of business processes, measure and improve them, and even achieve breakthrough improvements that can lead to strong operational innovation. This is one of the key roles of the leader.
Orignal From: Operational innovation
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