When is it more beneficial to optimize an existing process instead of replacing it entirely?

When is it more beneficial to optimize an existing process instead of replacing it entirely?

Info

Optimization is often better when:

  • The Core Process Works: The fundamentals are sound, but execution is inefficient.

  • Cost Constraints Exist: Full overhauls are expensive; tweaks are more affordable and faster.

  • High Adoption Exists: Employees and customers are familiar and comfortable with the process.

  • Quick Wins Are Needed: Incremental improvements deliver results faster.

  • Technology Can Enhance It: Automating or digitizing parts may fix inefficiencies without changing the whole system.

  • Low Risk Appetite: In regulated environments, complete changes may be risky or non-compliant.

Example: A retail company may optimize its order fulfillment process with barcode scanning instead of revamping its entire inventory system.