Innovating with customers (1) Flashcards
WHO owns the IP rights?
WHO is looking for an external actor in the NPD process?
what kind of involvement are we looking at??
If this is the customer, it is supplier involvement
If this is the supplier, it is customer involvement
Be aware of what involvement we are looking at
What is open innovation?
Involving external input and bringing innovation out to broader environment
What is the definition of customer involvement?
When a customer participate in new product Development of a supplier from the idea stage to the prototype testing stage.
Why involve customers? (benefits)
- access to new ideas and solutions
- Opportunity to enhance product performance
- Better understand of customer needs
- reduce development costs
Challenges of having customer involve?
- Requires coodination
- Customer may not represent majority
- conflicts
- Reduce control
- increase complexity of NPD management
When should suppliers involve customers?
As early as possible
Why should suppliers involve customer according to Laage-hellman paper?
Why: opportunity to enhance product performance—based, e.g., on a better understanding of user needs—and reduced development costs are key arguments for customer involvement
- Increase effectiveness of product development
- Customers can be used as code-developers
Cui and Wu talks about how customers can be involve. Mention the three different ways of utilize customer knowlegde?
Customer as information source (CIS):
-Rely on the input from the customer
-Close to internal innovation process at the supplier
-Survey and focus Groups
Benefits: High control, time sufficient, not sharing much
cons: limit, maybe not that good information
Customer as co-development (CIC):
-Customer and supplier Works closely together
-Do knowledge sharing
-Have representatives from both sides
Benefits: Build close relationship, good for new information and markets. creative,
Cons: Time consuming, requires coordination, conflicts
Customers as innovators (CIN):
- Customers innovate the product and supplier manufacturing and adopts it.
Benefits: minimum involvement, match customer needs
Cons: long process, loss of control,
Where does the innovation take place when doing the three different involvements?
The innovation takes place at the supplier when customers act as information sources and vice versa when customers are innovators. When the both are co-developers the innovation takes place at both and it is like a relationship.
The process of knowledge management is influenced by three key factors?
- Nature of customer knowledge
- Knowledge management strategy
- Knowledge management implementation
What is the nature of knowlegde?
Customer need heterogeneity:
The degree which customers’ needs for a product are different from each other – each customer or groups of the customer have unique preferences for certain products or features.
Customer need tacitness: The degree to which customer need information is difficult to codify or communicate across organization
What is the two knowledge management strategies?
Market exploration: focuses on seeking new information and new markets
Market exploitation: focuses on using customer information that is consistent with existing markets
What is the two knowledge management implementations?
Interfunctional coordination:
The degree of communication and collaboration among different functions in the organization. Facilitates knowledge sharing
Strategic flexibility:
A firm’s ability to reallocated and reconfigure its organizational resources to pursue alternative strategies
The result of the Cui and Wu paper (just read answer)
Need heterogeneity: Firms use Co-development (CIC) and customers as innovators (CIN) when facing high customer need heterogeneity, but do not reduce customer information
Customers as innovators (CIN) are not influenced by tacitness
Customers as information source and co-development are associated with market exploitation and they rely on functional coordination
CIN (customer as innovators) requires strong strategic flexibility
The results also indicate that high levels of technological capability can constrain the benefit of CIC, but such constraining effect does not exist for CIN – it’s useful
What elements includes in the model of customer selection from Bonner and Walker?
(tip: incremental and innovative product in relation to different customers)
Customer relational embeddedness:
is defined as the degree to which the set of influential customers involved in the NPD project had close ties with the NPD organization prior to the start of the project. (WELL KNOWN CUSTOMERS)
Customer knowledge heterogeneity:
The degree of diversity of product-related information and competencies among the most influential customers on technical, market, strategy, and social dimensions. (INNOVATIVE CUSTOMERS)
-Forstås på den måde at heterogen viden, så ved dine kunder noget andet end det du ved.
Low level of newness: Incremental products
High level of newness: Innovative products
