What is the difference between process optimization and process innovation?
Though related, optimization and innovation serve different purposes in process improvement.
Process Optimization:
Focuses on improving existing workflows.
Involves small, incremental changes.
Example: Reducing invoice processing time from 5 days to 3 days.
Process Innovation:
Involves completely rethinking or replacing processes.
Often leverages new technology or business models.
Example: Automating invoicing with AI instead of manual processing.
While optimization refines efficiency, innovation drives transformative change, often unlocking competitive advantages.
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