DESIGNING INNOVATION

Designing Innovation

Designing Innovation into Service Improvement

Innovation

Innovation is an essential element for any organization in order to survive, grow and significantly influence the direction of any industry. Development does not; however, guarantee success, but most be followed up with successive streams of innovation and change, from the incremental to the radical. The most reliable way to be successful in the industry is to innovate better and longer than the competitor, leading companies develops innovation portfolios that they can use to help sustain growth over the long term (Uljin, 2003, pp. 19). Innovation and change is an essential part of any business activity, but only some people recognize its importance and significance. Often, management fails to notice the implication of innovation and change, which becomes the reason of the change failure.

The Innovation Process

In the center, of the innovation process are the company and its employees, which correlates with the strategy, culture and structure of the company essentially determine the innovation process from the inside.

The following factors, however, act outside of the company and the innovation process:

- Customer needs,

- Benefits to customers

- Global trends and technological

- The behavior of the competition,

- Requirements of the families of the contractor and employees,

- The needs of intermediaries (suppliers and retailers)

- Requirements of the network partners.

E-Business Strategy, Environment, and Infrastructure

Electronic business, or e-business, is the phenomenon that is simultaneously legitimizing the Internet as a mainstream communications medium and revolutionizing a new commercial business reality. The growth potential for creatively conceived and well-managed e-business ventures are unparalleled in the history of industry. Speaking of hyper growth, business-to-business (B2B) e-commerce, whereby businesses sell directly to one another via the Internet, was five times as large as business-to-consumer e-commerce.

The Need for Innovation

Know your customer

The company must collect the information it needs to describe and characterize its customers of its market position and to detect new segments. All the technology exists today to build, manage and analyze massive amounts of customer relationship databases to enhance its customer capital. From a technical point of view, CRM involves capturing, at the company, all customer data collected internally or with outside organizations and integrating them into a data warehouse.

Select client

The next step is to analyze these data with the most advanced techniques - data mining, statistical analysis, and make the results available to all channels of customer interaction. The data mining can analyze and interpret large amounts of data from different sources to identify trends, gather the similar items into categories and statistical assumptions. From the information collected, the company can get objective answers on which to base its operational strategy.

Indeed, Business Intelligence (Business Intelligence and Data Mining) is used to develop the various components of the strategy (sales, marketing, sales channels, customer loyalty) and provides all the necessary charts. Thus, we must distinguish between customers based on their needs and their contribution to the outcome and dialogue with them so as to reduce the costs of the business relationship and increase efficiency. This dialogue should help to trace ...