Exploiting innovation and customer demands

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Organizations the introduction experience growth if your customers are satisfied, and the customers are satisfied when their needs are met by the products and services provided by organizations. "Judging by this bidirectional relationship is not relevant then that business is more focused on product innovation based around customer demands? Demands, no doubt, influence innovation within an organization. However, these influences are ignored largely in literature and often shuts down or confuse the market demand than real consumer needs and "projected demands." In this study, we will review the publication of NESTA on "Demand and innovation: how customer preferences are the innovation process" (hereafter referred to as the publication of 'NESTA') that seeks to bind together a viable relationship between the exploitation innovative ideas and brand new consumer demands.

What is Demand?

One would think generally any business entity as profit-hungry company. However, the important parts of any number of business processes are provided within the service providing end customers. Customer satisfaction comes first, and only then is it possible to sustain a profit and effective growth. An essential part of being a business is the recognition of their relationship with their customers. Customers often express their concerns - and be able to do so, have their preferences and needs who wish to see reflected in products and business services. Without knowledge of what customers require, a business can not succeed. This "voice of customer" is what is called demand.

Demand Nurtures Innovation

Traditionally, consumer demand was defined as the customer's willingness to pay a certain product where innovation is consumer demand for a product. However, demand over time is considered as being a primary motivator in enabling innovation within an organization. Helen Pukszta, a senior consultant at Cutter explains the orthodox approach in the following words: "As consumers, we are accepting of the notion that products and consumer marketing mold our demand. Does anyone submitted the requirements for an iPod six years a Everyone now wants one. "(Koprowski, 2006) with the return of these virtues orthodox globalization are fast being replaced by more efficient processes and more aerodynamic. The advancement in the management of customer relationship tends to allow organizations to maintain customer needs and base their business models around these concerns. Maderna (2006) notes that customer demand has grown to be even more important in product innovation today than in years gone past?

What Is Innovation?

In general linguistics, innovation tends to be synonymous with the concept of the invention. Invention is the first occurrence of an idea, whereas innovation defines the first attempt to put that idea into practice. EIPR (2006) defines innovation as "the successful exploitation of new ideas." Where sales strategies and promotions and policies help business discounts are successful in the short term, the ability to develop new products under customer needs adds to the competitiveness of an organization over a long period (Maderna, 2006). Innovation is an incremental process that requires continuous regeneration. It is an amalgamation of ideas rather than those that originate from a single source (Tidd, Besant and Pavitt, 2005). NESTA publication suggests that innovation is not nothing like a linear process and that ideas can occur at any time through the process.

How Consumer Demand Shapes Innovation?

The publication of NESTA implies that "demand is essential for successful exploitation of ideas." Attempts to justify the influence that consumer demand is in the process of innovation within a company. The discussion that has to mean that an organization develop a product only if there is a need for its use. Therefore, considered as regeneration, consumer demand plays a crucial role in new innovative developments within an organization. Innovation is largely a systemic process by which an idea for a product is formed and made with constant feedback (the interactions and interdependencies) between the various entities involved in the process. If there is a demand for a product into a potential market (although its a niche market), there is a fertile opportunity for innovations to occur. Consumer demands are innovations, eg, required for a technology "greenest" car led to the development of Toyota Prius and the Tesla Roadster, demand to pay online taken to the Web site of e-commerce as PayPal and Amazon, etc. . In fact, much of the eco-friendly products in the recent past as a result is demand-oriented innovations.

Types of Demand-Driven Innovations

The publication of NESTA identified three distinct modes of demand-driven processes of innovation are discussed at length as shown.

1. Market-mediated Innovations

Such innovations are conducted via surveys of business and consumer markets. Innovative activities that fall under this category are rewarded with recognition by firms. Such innovations are radical but are highly speculative and follow the trends identified in markets on a number of years. These further include two different types of innovations: (a) Based on the market where market beyond performance and use trends to work on new innovations - products and services, (b) Strategic: future where projections are made watching market trends and current consumer behavior.

2. Coordinated Innovations

Such innovations are expressed through sands nonprofit or government policies. These include innovations that are considerations of policy intervention, eg, product innovations that are a part of Green Revolution innovations can be judged as coordinated.

3. Direct Innovations

Such innovations are a result of constant interaction with end users. Product innovation of this kind requires the user agreement and the amendment process intermediates. These types of innovations are increasingly drawing as "democratic innovation", however a more general term "user-driven innovation" is used more often.

Demand-Driven versus Supply-Oriented Innovation

In the era of post-War II world, innovation was seen largely as a process large, bulky and linear by which innovation is identified as being supply-oriented. Manufacture on a mass scale provided effective delivery of tools and implements of war. The "science led to technology, and technology met the needs of the market" (Edquist and Homma, 1999). The problems with such a linear approach to innovation is the absence and lack of feedback paths (Kline and Rosenberg, 1986), hence the need for a more inclusive and interactive process of innovation was required In contrast, demand-driven innovation can be seen as much more systemic process where possible multiple interactions and complex interdependencies can be observed within the various entities involved in the process of innovation. Factors constant feedback on the needs and demands of consumers and involve more participation from the demand side. Pivotal importance put on the demand side plays a vital role in assessing the public policy for innovation (Edquist and Homma, 1999). NESTA publication also states that demand-oriented innovation is getting more attention from aldermen while it tends to be more inclusive and participatory. Even though, the publication of NESTA also states that with the exception of the virtues of a linear and systemic innovation, there is really no distinction between innovations prominent supply and demand-oriented. The thin line between the two is vague and blurry at best. This could also be discussed, saying that even supply-side innovations tend to cater to a "need or demand" despite it not being interdependent.

Framework for a Demand-Driven Innovation Process

The publication of NESTA defines a formal framework (P. 25) for a demand-driven process of innovation. We will call within NESTA on.

1. Defining Needs (Demands)

Demand-driven processes of innovation, is essential to understand what needs to require guidance. NESTA publication defines the ideas that occur in response to two specific types of needs: a need for internal organization and external needs of the employee or the employee. These demands are defined as "triggers" for innovation. In addition, the publication simplifies trigger these demands into four distinct categories:

1.Suspected Demand:

Belief that there is a requirement for something that customers would be willing to buy.

2.Client Demand:

The completion of a project brief submitted by a consumer.

3.Internal Cost Saving:

The need to reduce the cost of organization.

4.Revenue Generation:

Generating more income for the organization or a need to expand operations.

2. Identifying Needs

The focus of the publication of NESTA in the process of identifying requirements needed to collect under two organizations: ASDA and "an unnamed large financial organization." Clearly indicates that consumer knowledge is vital in identifying needs to generate ideas. This allows any organization to decide at an early stage what ideas should and should not be converted. NESTA publications talk about organizations that can maintain two separate process running parallel - one where ideas are developed, and the other collects the vital needs-consumers' to be fueled in the first trial. This innovation brings a level closer to the customers needs. "

3. Consumer Influence

Thus, including the needs of consumers with the top 'and addressing them while generating new ideas, influence the consumer's influence in the idea-generation and finally the process of innovation. Any new products and service that you perform as a result of this binding process leads to innovation which is influenced by desires and demands of customers. "

4. Front-line Interaction

Innovations usually just do not require data consumer demand that have accumulated over time but are more dynamic than that. Innovations can leave "days in the shop floor." This presumes that customers' demands and desires can be identified by observing while they are interacting with the business. For example, how does a customer purchases can greatly influence decisions in a more innovative and can end up having to include more congruence between their needs and the products and services provided. Innovations as a result of this approach are generally influenced by short-term preferences of a client, and then generate ideas which are carried internally within the organization rather than are recommended by consumers. This kind of innovation paves the way for a more incremental innovation within the inner workings of an organization. Such innovation also occurs with the identification of some hidden needs of customers that the client could not always express their opinions on.

5. Bespoke Consumer Interaction

We discussed how the observation of customers can assist in generating innovative ideas, but work with clients on new innovations in the building has a more radical. Although such innovations cater again to short-term immediate needs of the client but because these ideas are usually put forward in a discussion by the client, the innovative changes that come as a result are usually very dynamic and radical.

6. Consumer Feedback

Another form of innovation process that relies both on the observation of clients and their advice is "customer feedback." With customer feedback, one makes sure that new ideas involving the feedback provided by customers and what has been observed of its habits. Such innovation may be internal (observed) or external (based purely on the advice provided by a customer feedback).

7. Market Research and Scanning

NESTA speech frame scanning and market research as a vital part of the innovations that cater to long-term trends. Such study and exploration of markets focuses primarily on consumer habits, feedbacks and market trends for products and services on a number of years. This latest assessment of trends leading to a focused approach while generating new ideas for innovation. This helps companies to cater to the needs that were never resolved in the past or still need resolution. Such innovations tend to lead to radical innovative developments are visible hard in processes and product development organization. For example in 2006, the addition of Apple's computers noticed a need for a mobile phone device as part of its product lineup with the development and penetration of mobile devices across the globe and the widespread availability of the architecture G / M. Not only came up with a phone but also (according to their latest trends and market behavior of consumers) included their desired products - iPod and MacOS - in a package with phone dubbing it the "iPhone."

8. "The sky is the limit"

A long-term ideology of innovation that is commonly accepted in any circle of organization development is the inclusion of decision strategies. The strategies focus on things that might affect any process or part of an organization over a longer period of time. Currently looking at consumer behavior, predictions can be made to highlight the effects of these habits later. The innovations that tend to cater to such trends are generally divided speculation on the part of thought "blue-sky" in the frame of NESTA. packaged with the phone dubbing it the "iPhone." Such innovations cater mostly to the involvement of sound-minded strategies to understand current consumer needs and project these needs in a later time to understand what these clients require the long term. Such long-term and tends to focus on its appeal is the primary basis for such innovation. the "iPhone."


In today's globalized world, innovation play a vital part in development. Accessible and desirable product. But innovation since World War II has focused largely on supply-dynamic whereby if innovation was limited only to what was available and how the availability of raw materials could be formed into a product that would be desirable to any customer. Such supply-based innovation fueled the industrial revolution and mass-production in the years of the twentieth century. However, this was generally not successful because the client does not usually required these products and needed to be said because the product was desirable, generally to advertising and marketing.

Further recommendations

The critical review of the publication of NESTA on demand and innovation has focused largely on the direction of the framework for progress within an innovation-driven demand and recommends the following changes that businesses can bring out in the process of organization to lead such an innovation:

Establishing a customer relationship that is more proactive and involves the regeneration and desire to rule possibilities and opportunities for innovation. :

Organizations need to look to clients to identify some hidden needs that customers could not always express.

Organizations must focus on a process in the collection of the higher needs of consumers that runs parallel to the process of innovation while fueling the innovation process.