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Fiona McGuinness20-Sep-2021 13:38:367 min read

What is Business Process Innovation and How Can It Improve Organisation and Efficiency?

How your business works matters. And with constant competition and evolving technologies, how you operate will continuously change. It’s good practice therefore to regularly assess your day-to-day processes and operations to ensure sustainable growth and continuity.

How do you achieve this? One way is through business process innovation – a concept whereby continuous improvement drives efficiency, cost-cutting, and growth throughout your organisation.

Here, we’re taking an in-depth look at process innovation, showing you how it works, what its benefits are, and how to implement it as part of your broader management strategy.

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 What is Business Process Innovation?

Business process innovation is the introduction of new technologies, methodologies, or strategies within an organisation. It’s designed to improve and enhance operations, whether by solving problems, resolving pain points, or improving the efficiency of day-to-day processes.

The concept of process innovation isn’t new, but in recent years, many businesses have adopted such a method as part of their broader management strategy. This formalised approach has developed in the wake of digital transformation, with rapidly emerging technologies and evolving techniques requiring businesses to adapt to changing industry and operational trends.

Due to the game-changing nature of business process innovation, such a strategy requires careful consideration and planning before any new techniques, technologies or best-practice guidelines are implemented. Successful process innovation hinges on competent onboarding and robust buy-in, with all personnel up to speed and prepared for the incoming changes.

Business process innovation can range from minor tweaks to your business management system to significant overhauls in how your business functions. Planning ahead is crucial, as it can reshape not only operations but also your culture, structure, and staff experiences.

colleagues working together

What Are the Benefits of Process Innovation?

Business process innovation can bring a multitude of benefits, with the potential to positively influence both individual performance and the fortunes of the wider business.

Below, we consider some of the key benefits of business process innovation.

Efficiency and Performance Improvements

Without question, one of the greatest benefits associated with business process innovation is the efficiency improvements it can afford your operations. Whether in the warehouse, logistics, procurement or marketing and sales; introducing innovative new processes can lead to marked increases in efficiency throughout your organisation.

Process innovation enhances efficiency in a couple of ways. First, it seeks to automate processes and controls that are resource-heavy, freeing up time that can be reallocated within individual business functions. Second, it solves problems and irons out pain points, accelerating workflows and making day-to-day tasks simpler.

Cost Reduction

For many companies, the main driver of business innovation centres around cost reduction. With greater efficiency and use of resources, a reduction in cost is a welcome by-product – helping you cut spending in specific areas of your operation.

Improved efficiency and reduced expenditure not only mean more bottom-line profit; it’s a great enabler for growth. Reallocate recovered costs to new areas of your business, and you can launch new ventures or invest in the latest technologies to push your business further.

Continuity and Competitiveness

Whether it’s part of your formal business strategy or not, innovation is a prerequisite of the modern industry landscape. As digital transformation accelerates and disruptive start-ups continue to emerge, you can easily be left on the backfoot if you fail to innovate in line with industry best practice.

Not only can business process innovation help you maintain a competitive edge, it’s also an effective means of ensuring long-term continuity and business health. Efficiency, growth, and a productive workforce are all signs of good business wellbeing, and innovation can play a part in supporting all three.

Enhanced Customer Satisfaction

By focusing on improving service delivery, reducing lead times, ensuring timely responses, personalising experiences, and maintaining consistency, business process innovation directly contributes to higher levels of customer satisfaction. Satisfied customers are more likely to remain loyal, advocate for the brand, and contribute to long-term business success.

Employee Empowerment and Satisfaction

Employee empowerment and satisfaction are crucial elements of process innovation that can significantly influence your organisational culture and performance. When you involve your employees in the innovation process, you cultivate a sense of ownership, engagement, and commitment within your workforce.

Empowering your employees makes them feel valued and more motivated to share their insights, creativity, and expertise, thereby enhancing processes and fostering positive change within your organisation. This collaborative approach not only results in more innovative solutions but also boosts job satisfaction and retention rates, as your employees experience a sense of pride and fulfilment in their contributions to your company’s success.


Scalability is a key benefit of process innovation for your business growth and expansion. By designing processes with scalability in mind, you can accommodate increased workload or expansion into new markets without disruptions. Flexible and adaptable processes handle greater volumes without sacrificing quality, ensuring smoother transitions during growth. This scalability provides a foundation for long-term success, allowing you to seize opportunities for expansion while maintaining efficiency.

This is by no means an exhaustive list of the benefits of business innovation. The advantages you can expect will depend on the scope of the innovations implemented, as well as your industry and business size.


Planning Business Process Innovation: Why It’s Important and Things to Consider

In today’s dynamic business landscape, agility to changing market conditions is essential.  Modern software solutions that include codeless or no-code customisation capabilities can empower your business to implement continuous impactful changes.

While extensive planning may seem unnecessary, strategic consideration remains crucial, as even incremental adjustments can shape operational efficiency, organisational culture, and long-term goals significantly.

Here, we offer a few practical tips on planning for business process innovation.

Assess the Competition

What are your competitors doing well and what are they doing poorly? Have any new businesses emerged within your industry that have broken the mould and taken a different approach?

Getting the measure of your competitors is a vital step in business innovation. Not only can it inspire you to embrace solutions you may not have considered, but it’s also an essential step in maintaining competitiveness and ensuring you don’t fall behind the market leaders.

Consider Market and Industry Trends

Digital transformation has triggered a period of rapid change within every sector, so there’s almost certainly new trends and developments that you have overlooked. Of course, you know your industry better than anyone, so be sure to stay abreast of the latest news and goings-on to ensure your business is ready to respond.

Use the insights this research throws up to inform your innovation strategy. How can the changes you make as an organisation help you adapt to changing market trends? Whether that means embracing remote working or introducing new technologies to your logistics chain; broader industry developments can have a big impact on how your business innovates.

man in deep thought reading post-it notes

Risk and Value-Assess Your Proposed Business Innovation Strategy

Making small tweaks to your business or systems as necessary is easy.  Making big changes to how your business operates however, can be daunting, so it’s important to make sure any process changes you want to make will add value.

To do this, we propose risk assessing every element of your innovation strategy, listing the pros, cons and potential hiccups of all changes taking place within your business.

For example, how might introducing new technology within your sales team affect productivity and performance? In the short term, you may see a drop off as the team get used to the new application, but with time the system should bring long-term value. Be mindful of the bigger picture and consider how risk balances with value.

Communicate with Personnel, Teams and Stakeholders

It’s crucial that you secure buy-in before proceeding with business innovation. Stakeholders, partners, teams, and individual personnel will want to hear about any prospective changes, and how new process innovation will affect their day-to-day work as well as the broader business.

Communicating your plans is essential to the smooth and efficient onboarding of new processes, innovations, and technologies. Within departments where roles may change as a result of innovation; clarity, transparency and an assured approach can help ease any disruption and anxiety surrounding the incoming innovations.

A Final Word on Business Process Innovation and ERP Software

Successful business process innovation hinges on having the right tools and platforms to carry the business forward and maintain continuity. ERP software is particularly effective in this regard, offering modular applications and scalable functionality that can be customised in line with your changing business requirements.

At Intact, our Intact iQ ERP solution is an ideal partner for businesses seeking to innovate and enhance their operations. With the flexibility to grow alongside your company, our flagship ERP platform can accommodate continuous improvement and changing demands – giving you an indispensable portal through which to control every aspect of your evolving business.


We hope you’ve enjoyed this guide to business process innovation, and that it helps you to think differently about the direction of your business. If you’d like to learn more about our ERP and business management software solutions, visit the homepage or call our team today via our contact page.


Fiona McGuinness

I've been part of the Intact family for 16 rewarding years. After completing my Business Studies degree, I knew Marketing was a field I wanted to pursue. Prior to joining Intact, I primarily worked in the financial sector, focusing on marketing for credit unions. When I started at Intact, I handled all the marketing tasks by myself. Over time, as our team expanded, so did my role. Now, I specialise in crafting compelling content across various platforms, from blogs to video scripts. No two days are the same, and I thrive on the dynamic nature of my role. Whether it's diving into customer case studies or lead campaigns, I'm driven by the positive impact our solutions bring to businesses. In an age where AI plays a significant role, I remain a firm believer in the power of authentic content. When I'm not working, you'll find me enjoying quality time with my family, sewing, or watercolor paintings.