How Operational Innovation Can Transform Your Company Essay Example

that an enterprise performs. Progressive did innovation on their operation by simply introducing Immediate Response Claim Handling. Suppose if a client had an accident s/he can call Progressive representatives. A claimant can reach a progressive representative by phone 24 hours a day. Then representative schedule a time when and adjuster will inspect the vehicle.

The claims adjuster works out of a mobile van, enabling a nine-hour turnaround rather than the industry-standard seven to ten days. The adjuster prepares an estimate on the spot and will, in most cases, write you a check immediately. These innovations at Progressive were provoked by a strong connection to the customer, the willingness to listen to customers' frustrations, and the common sense to act on them by changing the core of their business operations.

This innovation in the operation has many benefits for Progressive. Claimants get faster service with less hassle, which means they’re less likely to abandon progressive because of an unsatisfactory claims experience. And the shortened cycle time reduced progressive’s costs dramatically. More important, however, the hassle-free claims process kept customers happy and loyal towards Progressive. The article also talks about the operation innovation of other companies like Toyota, Dell and Wal-Mart.

Wal-Mart did innovation on the operation by practicing cross-docking, which moves goods from an inbound delivery truck to an outbound one going to a store, eliminating the need for expensive warehouse space. With every new story, the substantial decrease in cycle time, development expenses, and operating expenses was found; similarly, customer satisfaction was boosted. The innovation in the operation like Dell’s direct model for computer sales and the Toyota Production System also help

them to achieve the success.

This helps to prove that operation innovation can transform the company. The article states that even with all the benefits operational innovation can deliver, some executives wonder if it is truly worth the efforts and also question on its sustainability. The article also states that operational innovation is a step change: it moves a company to an entirely new level. Once there, the organization can focus its efforts on a generation of additional changes, refinements of the innovation, which will keep it ahead of the pack until the inevitable time comes for a new wave of innovation.