Operational innovation is a business model, process, or product that improves an organization’s efficiency, effectiveness, or competitiveness. It is a type of innovation focused on improving an organization’s day-to-day operations.

Operational innovation is often a result of breakthroughs in technology or how an organization operates. For example, the modern franchise system business model results from McDonald’s operational innovation.

The key to successful operational innovation is creating a new way of doing things better than the existing ones. Operational innovation can be difficult to implement, but it can significantly improve an organization’s efficiency, effectiveness, and competitiveness.

There are several steps that are often involved in the implementation of operational innovation. First, the organization must identify the problem that needs to be solved. Next, the organization must come up with a new way of solving the problem. Finally, the new way of solving the problem must be tested, and if it is successful, it can be implemented into the organization’s operations.