Continuous Improvement vs. Innovation

Is ‘Evolution’ or ‘Revolution’ The Key To Business Transformation?

A modern-day business puts a big emphasis to differentiate themselves in their industries. As investors tirelessly search for ‘gems’ like companies to invest in the market, businesses strive to give themselves any advantage over their competition.

Oftentimes, adopting Innovation and Continuous Improvement tactics allow organizations to transform their businesses from the inside to a more effective and efficient workplace.

These two terms, Innovation & Continuous Improvement, may often be used interchangeably; however, they are very different in nature. So what approach is the right one for your business, and which one really prevails?

Let’s explore!

What is Innovation?

A textbook definition of #Innovation is the successful conversion of new concepts and knowledge into new products, services, or processes that deliver new customer value.

For instance, you could invest time and effort trying to make a candle that burns the brightest, but it would still always remain a candle.

Whereas a light bulb wasn’t a result of continuously improving the candle, it was Innovation that led to its introduction.

This is a smarter way of rethinking how to come up with a new way that matches the expectancy of value of ever demanding customers.

What is Continuous Improvement?

#ContinuousImprovement (CI) is a method to identify opportunities for streamlining work and reducing waste in operational processes.

CI is a trend that is catching up as more and more companies are shifting focus to project and process improvements such as Lean or Agile methodologies that allow for better visualizations of workflows.

The ultimate end goal is to reduce wastes, rework and cost while upholding high customer satisfactions.

Key Differences Between Innovation and Continuous Improvements

Innovation is a revolutionary and first-to-market approach, whereas Continuous Improvement is an evolutionary, and a benchmarking method to shred off excess baggage.

While Innovation is about creating new value by materializing on effective ideas, Continuous Improvement strives to strengthen an existing value proposition to make processes efficient.

Innovation may take more research and development requiring ongoing investments, Continuous Improvement principles on the other hand can be ingrained in work cultures by introducing Lean as a way of work.

By introducing employees to problem solving techniques and better identify wastes, redesigning existing non-value add processes can be a natural evolution of problem solving in today’s work functions.

The Challenge

Innovation and Continuous Improvement have very similar motive to begin with, such as, gain a stronger competitive advantage, foster growth and reduce marginal costs.

Personally, the best approach is a hybrid of both, and let me explain why.

To see the big picture, it is necessary to take a step back and rethink revolutionary ways to create customer value and exceed market expectations, and staying focused on continuously evolving our core operations by eliminating wastes on an ongoing basis.

While not all improvements are innovations, almost all innovations are improvements.

In the end what really matters is the mentality – is your team courageous enough to start innovating with brand new ideas, as well as enduring discipline to continuously improve your revolutionary processes?

If the answer is yes, I challenge you to start by putting yourself in your customer’s shoes and question what is it that they really value about your business.

Start from there and then let Innovation and Continuous Improvement lead the rest of your transformational journey.

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Question: How have you leveraged Continuous Improvement or Innovation in your personal/professional experience?

I look forward to your thoughts below - @WahidChowdhury.

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1. P.S. - Check out more of my articles in My Library of Contents