Abstract
This chapter analyses the evolution of lean thinking and its widening applications from its origin of the manufacturing industry towards the other industries with the emphasis on how organizations could learn from lean thinking for achieving improved performance of innovation processes. Based on the degree of novelty, uncertainty and complexity associated with innovation processes, direct adoption of lean thinking for optimization is considered to be challenging. We discuss that organizations need to realize that there are opportunities for lateral learning from lean applications that have benefited systematic repetitive processes such as manufacturing by adapting to innovation processes through identification and shedding of non-value added activities. By identifying several lean innovation approaches in practice for optimizing innovation process, we stress the need and opportunity for the adaptation of lean thinking to cater the special characteristics of innovation processes.
TopIntroduction
Lean concepts and their importance for optimum utilization of resources through the reduction of waste are not completely alien to contemporary managers. While the adoption of the lean concepts in standard production has been accepted without hesitation and practiced in organizations successfully, its application in innovation processes which inherit novelty, uncertainty and complexity is known to be challenging (Browning & Sanders, 2012). While enhanced efficiency is a universal need in process management, effects on the process effectiveness need to be managed not to lose the organizational competitiveness through innovation. Irrespective of the efforts in integrating lean principles with the innovation process there seems to be a lack of consensus due to the perceived hindering effects of process improvement and standardization approaches on creativity and flexibility that are essential for an effective innovation process.
Lean thinking principles are directed towards specifying value, identifying value stream, avoiding interruptions in value flow, letting customers pull value and starting pursuing perfection again. For a lean production process, steps that would not add value to the customer should be eliminated through problem-solving for a streamlined process. Lean Thinking has become a well-known shared language practiced in diverse industries and settings and resulted in increased learning (Stone, 2012). It covers “highly integrated elements and a wide variety or management practices” (Bhamu & Sangwan, 2014). It can become an effective learning process for organizations for promoting ‘thinkers’ (Alves, Dinis-Carvalho,& Sousa, 2012) and its links to the sustainability of organizations take the learning process to stakeholders. However, organizational culture and leadership remain as some key factors that will impact the success of implementation (Ingelson & Martensson, 2014). In fact, lean thinking is itself a form of an innovation, a gradual one, resulting in operational integration (Gamme & Aschehoug, 2014).
This chapter focuses on how innovation process is influenced by lean thinking based on the existing literature. It analyzes the evolution of lean thinking from its initial application in manufacturing industries to other broader areas. It discusses the evolution of the innovation process modelling and the applicability of linear process models with non-linear approaches and specific attempts to improve the efficiency of the innovation process. It investigates the impact of lean thinking process on the innovation process and discusses several approaches in practice in the implementation of lean innovation processes in organizations.
Key Terms in this Chapter
Lean Principles: The procedural steps of identification of value and its value streams, taking actions so value flows, linking customer demand to value creation and continuously perfecting this system.
Lean Innovation Process: An innovation process that uses limited resources optimally.
Organic Approach to Designing the Factory of the Future: An approach that models truly organic and living systems for the purpose of designing organic manufacturing organizations that are flexible, adaptive, fast, growing and agile.
Lean Thinking: A systematic thinking style, philosophy, orientation to improve operational aspects of business by eliminating waste and increasing value in product and service offerings.
Lean Transformation: Creation of value streams that are linked to customer demand and internal improvements.
Non–Value Added Activities: Diverse types of unnecessary inventory, waiting time, production, scraps, process time, handling time, movements, idle state of knowledge and skills in overall waste of those specific resources.
Evolution of Innovation Process: The diffusion of innovation from linear process forms to more integrated and complex structures.
Innovation: innovation is a change in products, processes, marketing methods or organizational methods. Those changes must be new to the firm and could be from both in-house developments as well as adoption of knowledge and technology from others.
Organizational-Innovation: Types of new ways and improvements in effectively managing organizations by deploying new structures, management techniques and information rather than using technology only.