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Customer driven-innovation


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customer driven innovation, platforms, critical success, examples

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Customer driven-innovation

  1. 1. CUSTOMER-DRIVEN INNOVATION Contents:Customer-Driven Innovation Platform For Customer-engagement In Product Innovation Process  Critical Success Factors Examples By: Sudhir Kumar Sah-ITIS Leibniz University Hannover
  2. 2. Innovation  Is a final product or services.  Is implementation of knowledge from the customers.  Is the insights, ideas, thoughts, and information the organization receives from its customers  These insights can be about current products and services, customer future needs, and ideas for product innovations.  Ideas for successful product innovations are most likely to come from end users and customers of the products and not from within the organization.
  3. 3. Customer-Driven Innovation Is Very Different From The Old Customer Innovation Programs Old Customer Innovation • Customer-focused Innovation Innovation is done by the organization. • Customer-Centered Innovation  Innovation is done with customers- organizations and customers create innovation together.
  4. 4. Customer-Driven Innovation  The customer is the key player - innovation is done by customers, with minimum involvement by the organization.  Customers are the primary source of ideas and the consumers of new products and services.  They can offer ideas without geographic and time constraints, and the organization must be able to apply those ideas quickly to the development of new products and services.
  5. 5. The Organization's Role  In a customer-driven innovation program, the role of the organization shifts from that of communicator and principal innovator towards coordination, facilitation and transparency.  The organization coordinates the innovation activities of customers during the entire innovation process.  For example, the activities by which customers contribute their ideas and give their feedback on current products and services. The organization also needs to coordinate customer activities with its existing business processes and systems.
  6. 6. Type of Innovation  The type of innovation represents the nature of customers engagement.  In customer-centered innovation programs, the engagement can be described as "open innovation“.  In customer-focused innovation programs, customer engagement can be called "closed innovation“.  In customer-driven innovation programs, the customer's engagement is dynamic, providing ideas anytime and anywhere. Customers and organizations interact frequently, sometimes in unstructured ways, and organizations need to serve customers dynamic needs.
  7. 7. Degree of Control  The degree of control represents the difficulty that organizations face in controlling the overall innovation process.  In customer-driven innovation programs, it is probably impossible for organizations to control the process.  In customer-centered innovation, organizations can control the innovation process.  In the customer-focused innovation process, control is the major strength and most visible benefit, since the innovation process is limited to internal processes or to third parties who are tied by contract.
  8. 8. Internet As A Platform  The Internet is an open, cost-effective and ubiquitous network.  In the physical world, communicating (and absorbing) rich information requires personal interactions with customers.  These constraints limit the number of customers that the organization can dialogue with.  However, Internet-based virtual environments allow the firm to engage a much larger number of customers. -Increase the speed and the persistence of customer engagement. -customer interactions can happen in real-time, and with a much higher frequency.  Finally, the Internet increases the flexibility of customer interactions: customers can vary their level of involvement over time and across sessions
  9. 9. Cont..  The key constraint is the willingness of customers to participate in interactions and privacy concerns that may limit the depth of information that customers may be willing to share with the organization.
  10. 10. Critical Success Factor  The direction of communication:- Two-way dialogue-helps organization to learn about and learn from individual customers and groups of customers.  The intensity and richness of the interaction:- Increases because virtual communities of customers help firms to tap into social knowledge in addition to individual customer knowledge.  The size and scope of the audience:- Increases because there is no geographical and time constraint.
  11. 11. THANK YOU !! Question ??