The focus of innovators should be on product’s utility, its efficacy vis-à-vis customers – that is to explore and identify how and where the new creation [a product or service or delivery platform] will impact or change the lives, operations, and processes of its customers. The entity being developed becomes more a function of its utility and benefit to customers than its technical possibilities.
It is important to have the best-fit match between the proposed value of the product or service to the customers at different customer experience situations and identification of the full range of value propositions that the product or service can offer.
Many a times success comes by proposing a new value through offerings and creating new customer expectations for an existing and familiar customer experience. Starbucks revolutionized the US office-worker’s coffee break by carving a niche for its offerings and providing a chic atmosphere, offering more exotic variety of brews and injecting elements of prestige and status appeal into the coffee-purchasing customer experience. Barista has extended the same value to its consumers in India and in a way led to the Indian middle class becoming more coffee literate and springing up of various coffee bars across the country.
Innovating and extending the same value and efficacy to distinctive parts of the customer experience can also be successful. Dell extended the same utility by offering to increase customer productivity by not only in technology terms by providing faster PC computers but also reducing the time to customer by eliminating distributors and dealers and offering customizable PC configurations tailored to each customers needs, resulting in a more effective and faster delivery experience.
Another example is that of Salesforce.com, the leader in On-Demand Customer Relationship Management [CRM] software. Salesforce.com changed the way enterprise applications as CRM are delivered to customers by adopting software-as-a-service [SaaS] business model, in which customers subscribe to Web-based software packages, frequently being updated, over the traditional model of one-time, commercial-off-the-shelf sales [COTS] used by all other major players, who now also offer software through the SaaS model. The company started focusing on the SME with affordability offerings has now moved up as customers are migrating up to higher-value editions looking for more functionality. Also, what benefits Salesforce.com is its AppExchange platform. The SaaS model makes it easier to create reusable code, which its partners then package up by adding value added industry specific, tailored modules and market to Salesforce.com’s user base via its AppExchange directory.
Sometimes, a completely new perspective offering a completely new value while providing a different customer experience may lead to success. The disposable fluorescent bulb from Philips is this kind of innovation offering customers not only usage productivity but also providing a unique value of environmental friendly disposal that was not offered by anyone else and catapulting it to a profitable market leader position in FL segment.
It is important to have the best-fit match between the proposed value of the product or service to the customers at different customer experience situations and identification of the full range of value propositions that the product or service can offer.
Many a times success comes by proposing a new value through offerings and creating new customer expectations for an existing and familiar customer experience. Starbucks revolutionized the US office-worker’s coffee break by carving a niche for its offerings and providing a chic atmosphere, offering more exotic variety of brews and injecting elements of prestige and status appeal into the coffee-purchasing customer experience. Barista has extended the same value to its consumers in India and in a way led to the Indian middle class becoming more coffee literate and springing up of various coffee bars across the country.
Innovating and extending the same value and efficacy to distinctive parts of the customer experience can also be successful. Dell extended the same utility by offering to increase customer productivity by not only in technology terms by providing faster PC computers but also reducing the time to customer by eliminating distributors and dealers and offering customizable PC configurations tailored to each customers needs, resulting in a more effective and faster delivery experience.
Another example is that of Salesforce.com, the leader in On-Demand Customer Relationship Management [CRM] software. Salesforce.com changed the way enterprise applications as CRM are delivered to customers by adopting software-as-a-service [SaaS] business model, in which customers subscribe to Web-based software packages, frequently being updated, over the traditional model of one-time, commercial-off-the-shelf sales [COTS] used by all other major players, who now also offer software through the SaaS model. The company started focusing on the SME with affordability offerings has now moved up as customers are migrating up to higher-value editions looking for more functionality. Also, what benefits Salesforce.com is its AppExchange platform. The SaaS model makes it easier to create reusable code, which its partners then package up by adding value added industry specific, tailored modules and market to Salesforce.com’s user base via its AppExchange directory.
Sometimes, a completely new perspective offering a completely new value while providing a different customer experience may lead to success. The disposable fluorescent bulb from Philips is this kind of innovation offering customers not only usage productivity but also providing a unique value of environmental friendly disposal that was not offered by anyone else and catapulting it to a profitable market leader position in FL segment.
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