Customer Involvemen t Into Service Innovation

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Innovation is a process by which organizations use their skills to develop new goods and services or to develop new production and operating systems so that they can better respond the needs of their customers. (Hill & Jones 1998)
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WRONG !!!

CORRECT !!!

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Facing fierce competition from domestic rivals, weapon sustain advantage. as well as foreign service for a innovation to

seems to be the most promising practitioners competitive

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CUSTOMER INVOLVEMENT

In the new economic era, customers play critical roles in the manufacturing or R&D process; corporate should invite customer to the value exchange process, and ultimately treat customers as partners. companies in the service sector, customer perception might seriously affect the 5/5/12

For

Year 1993 Anderson & Crocca 1993

Definition of Customer Involvement Authors Term Definition

co-development A technology provider, together with users, explores the use of the technology in a specific industry. co-development Customers participate in the development process and play important roles. customer participation Customers participate in the new service development process directly.

1995

Muller, Wildman & White Martin & Horne

1998

Neale & Corkindale

co-development A technology provider, together with customers, exchanges ideas and participates in the development process. user involvement The interaction between customers and the development process. partnership A formal relationship between the customers and the company is established; the customers are then invited to participate in the development process. customer involvement Product/service providers and current/potential customers jointly engage in innovation projects, and exchange ideas to anticipate customers demands and develop new product/services.

1998 1999

Kaulio Campbell & Cooper

2006

Alam

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TYPES OF CUSTOMER INVOLVEMENT

We can categorize customer involvement in the new product/service development process into three groups, namely:
lead

user, user, members.

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normal

community

Lead user
Lead users have two distinct characteristics:

Lead users face needs that will be the future trend in the marketplace; In order to fulfill their needs, lead users would actively engage 5/5/12 in the innovative process.

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Normal user

Normal

user involvement focused on the financial and telecommunication industries because these industries provide a set of standardized product/service to fulfill individual needs.
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Community user

Unlike normal user, community users usually have expertise in a specific field. Community users are interested in technological products and are willing to spend more time on innovations. Therefore, community users play a very important role in the advance of technologies.
5/5/12 (Tapscott & Williams,

Customer involvement in new product/service development Previous studies concerning customer involvement focused on issues such as: management information systems (MIS), total quality management (TQM), and citizen participation in public policy making.
Customer

involvement in the new product/service development process is a new area of 5/5/12

Service

production implies that value of service is co-created with the consumers on the basis of value-in-use, rather than being embedded in separated tangible product. participation exists in the whole process of service innovation. Their attitude, behavior and competence affect the innovation markedly. customers interact with service 5/5/12

Customers

As

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Classification of customer roles in product development context.

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User involvement can be divided into three classes based on what they are influencing:

User involvement in deciding what to design User involvement in the actual design process of a certain service User involvement in design in use, after the service has been 5/5/12 launched to the market.

User contribution to product development.

Techniques of customer involvement and the style of questioning are relevant issues, because uncertainty in these matters can partly be the reason for controversy around usefulness of customer participation. Hyvnen in 2007, classify interaction methods by three roles that user involvement can play in product development:

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Advantages of customer involvement

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Year Authors 1993 Anderson & Crocca 1999 Von Hipple, Thomke, & Sonnack 2002 Prahalad & Ramaswamy 2002

Advantages Technology providers can better understand user needs, and users can understand the new technology. Create breakthrough products, and reducei ncremental improvement of existing products.

2003

2003

2004

In the product development process, users can provide suggestions, and increase the opportunities of new product success. Alam 1. Superior and differentiated service. 2. Reduce cycle time. 3. User education. 4. Rapid diffusion. 5. Long-term relationships. Magnusson 1. Users involved in a service innovation process seem to produce more original and valuable proposals than professional developers. 2. User involvement could help break the frames which limit the development of new product/service. Magnusson, 1. Technical experts can better understand the needs of Matthing & customers. Kristensson 2. In the development process, customers can provide suggestions. 3. Reduce cycle time. Franke & Piller Designed products can meet customers preferences and 5/5/12 needs.

Customer involvem ent into service innovatio n in Romania

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INNOVATION UNION SCOREBOARD 2010

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Romanians are not willing to try new products

Romanians

are very conservative even shopping, only 29% of them are willing to put a new product to cart. study took the BBC revealed that novel, the

The
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QUESTIONS?

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