The invention that dramatically changed manufacturing processes during the Industrial Revolution was the steam engine. Developed further by James Watt, it allowed for significant advancements in mechanization, facilitating the shift from hand production methods to machine-based manufacturing. Steam engines powered machinery in factories, revolutionized transportation through steamships and locomotives, and ultimately contributed to urbanization as industries concentrated in cities. This innovation increased production capacity and efficiency, leading to mass production and a dramatic transformation in the economies and societies of the time, laying the groundwork for modern industrial practices.