Platform For Customer-engagement In Product Innovation Process
Critical Success Factors
Sudhir Kumar Sah-ITIS
Leibniz University Hannover
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.
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.
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.
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.
Type of Innovation
The type of innovation represents the nature of customers
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.
Degree of Control
The degree of control represents the difficulty that
organizations face in controlling the overall innovation
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.
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
-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
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.
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.