Profitable growth through process excellence is the outcome of increased effectiveness and efficiencies of existing offering creation processes and the innovation process.
Profitable business growth takes place through increasing sales and reducing costs and innovation, going beyond the existing offering.
Growing the core business typically takes place organically, however many profit enhancement opportunities await to be uncovered.
Growth of the core business takes place through productivity improvement focussed on fully delivering the customer desired experience. It is no longer about making more better, it is about making the right quantity to satisfy market demand, at the right quality as required by the customer. This is balanced with faster and agile production/creation processes while continuously reducing total cost, and even lifetime cost.
Organic growth involves the entire enterprise value chain and its stakeholders including suppliers, and their suppliers through to the end-user.
Innovation is key to profitable growth through Process Excellence
New and often breakthrough solutions/offers are market-driven and typically aimed at new and/or existing markets. This is the realm of product-, service-, process-, operation- and business model innovation.
With innovation comes an ever-narrowing window of opportunity. This implies that not only does an organization need to be fast and create new services or products but that their commercialization process needs to be equally fast and effective.
For this reason, the innovation process itself includes several phases from first identifying a potential need (whether the market knows it or not, can articulate it or not) all the way through to the customer or client using it.
The innovation process phases typically include (1) Research, (2) Design, (3) Optimize-1, (4) Develop, (5) Optimize-2, (6) Ceate , and (7) Commercialize.