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Investigation of Customer-Driven Innovation
Blekinge Institute of Technology, School of Computing.
Blekinge Institute of Technology, School of Computing.
2013 (English)Independent thesis Advanced level (degree of Master (Two Years))Student thesisAlternative title
Investigation of Customer-Driven Innovation (Swedish)
Abstract [en]

Context:- Software companies have changed their strategies from “innovating for customers” and “innovating with customers” to innovating “by customers” which is also known as customer-driven innovation. Actually, companies move toward customer-driven innovation programs because they need to collect as many ideas as possible from suitable customers to ensure their global competitiveness and set the stage for profitable growth. As customer-driven innovation is comparatively a new trend, the objective of our research is to explore its status in the new era of software development. Objectives:- The main aim of our study is to investigate customer-driven innovation in the modern era of software development. It also explores the motives, benefits, communication channels and barriers between customers and software companies to cooperate with each other. Methods:- Systematic Literature Review (SLR) and industrial interviews are two basic types of data collection methods which are utilized to accomplish the objectives of our study. Then qualitative data analysis software is used to perform thematic analysis (Grounded Theory) in order to draw conclusions and highlight useful information from the collected data. Results:- Based on the SLR and interviews result the conclusion was made that there are different types of motives and benefits for company and customer to cooperate with each other during idea generation stage of product and service innovations. We identified various types of activities and communication channels in the context of customer-driven innovation. In addition, we identified different types of barriers that can limit the cooperation between company and customers. Conclusions:- The comparison between theory and practice explored most important motive and benefit for company and customers to cooperate with each other during ideation process of product and service innovation. It also identified most significant activities and communication channels for idea generation in the context of customer-driven innovation. In addition, we identified most common barriers which prevent company and customers to cooperate with each other during ideation process.

Abstract [sv]

In this thesis different aspects of customer-driven innovation were investigated. In this type of innovation customers feedbacks are considered as a driving force for products and services improvement. Therefore, companies let their customers to drive idea generation stage for products and services in order to be become marketplace leader. In this case, customers’ are considered to be primary sources of ideas and suggestions. While the role of company is to listen carefully, analyze, filter and implement the retrieved customers feedbacks into new products and services, then deliver to the customers and receives once again feedbacks from them. In this competitive era, customer is a ‘king’ because he will buy only the products that satisfy their needs and wants therefore company need to actively involve customers in innovation. This study evidences show that customers could be involved in idea generation process for products and service which is beneficial to the company sustainable competence. In addition, we have provided different examples of the companies i.e., Sony Ericsson, Telenor, Sun and Hallmark that have developed products and service with customer cooperation. They claim that the innovative idea should not be only provided by internally but by externally via customers because customer-driven innovation had a better chance of succeeding than company-driven innovation. One of the main issue is aimed to be discussed in this paper was to understand that how company can receive customers feedbacks (ideas, suggestions, complaints) about their products and services. The results of our study indicates that company are using different types of communication channels to retrieve customers feedbacks about their products and services i.e., website, blogs, twitter, facebook, call center, live chat, email, focal point software, share point software, CRM software, software toolkits, video conference, linkedIn and suggestion box. Another main issue that we were aimed to be presented in this paper was to understand different activities organized by companies in order to identify customers’ needs and demands. These different types of activities for idea generation in customer-driven innovation are facebook survey, website popup survey, client survey, market survey, closed feedback loop (call center survey), workshop with customers, brainstorming together with customers, idea contests, focus group, user cases, run a 360, following up meeting with customers, user stories and customers interviews. Based on the SLR and interviews results the conclusion was made that there are different types of motives and benefits for company and customer to cooperate with each other during idea generation process for products and services. The company motives and benefits behind a cooperation are increase customer satisfactions, achieve competitive advantages, collecting new ideas, reduction of market uncertainties, financial benefits and etc. On the other hands, customers achieved various types of benefits to cooperate with company i.e., cognitive or learning benefits, social integrative benefits, personal integrative benefits, monetary rewards, non-monetary rewards and etc. Potential barriers that can limit the cooperation between customers and company were identified. Based on theoretical material and interviews results the conclusion was made hat each side have their own barriers which prevent them to cooperate. The company side barriers are lack of secrecy, lack of expertise, lack of communication channels, hard to implement customers’ ideas and etc. While there are various customer side barriers that can limit cooperation with company during ideation process i.e., customers’ incapability to express, they don’t know whom they may contact, they afraid that the company will raise the cost of the products by identifying their demands and etc. Ultimately, it is not the ability of company to only innovate but their ability to innovate continuously and consistently that is very important. Company can no longer assumes that they have all the knowledge and abilities for innovating for customers nor it is enough to innovate with customers but company need to let their customers’ to drive innovation. In future, successful companies will be those that take benefit from customer-driven innovation in order to increase their growth, enter to new market and be competitors in their market.

Place, publisher, year, edition, pages
2013. , 93 p.
Keyword [en]
Customer-driven innovation, Idea generation, Communication channels, Motives, Benefits, Barriers.
National Category
Computer Science Information Systems Software Engineering
Identifiers
URN: urn:nbn:se:bth-2506Local ID: oai:bth.se:arkivex3B3101C008F807C3C1257C12007D5B9EOAI: oai:DiVA.org:bth-2506DiVA: diva2:829785
Uppsok
Technology
Supervisors
Note
Email: dirdard@yahoo.com Phone # +46 723255451Available from: 2015-04-22 Created: 2013-10-28 Last updated: 2015-06-30Bibliographically approved

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Citation style
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