In addition, they are effective tools for improving external communications and quality of services for established and new customers.
For example, customer databases with a history of client-specific correspondence help managers and employees to respond more effectively to customers.
services or technologies can enhance the quality of a firm's services to customers and attract new customers.
By collecting information on customers'needs it can be used for product development or innovation. A home page with a direct link to the corporate e-mail account provides an easy-to-access contact point.
For those in different time zones, 24-hour availability of the contact is especially attractive. Eurostat's E-commerce Pilot Survey shows that SMES'motives for Internet commerce include reaching new/more customers, geographic expansion of market and improvement of service quality.
Box 1. ICT use for better internal communications and customer management In SMES, there is often insufficient sharing of business information between managers
To improve a firm's responsiveness to customers client feedback and information on employees'professional experience, such as know-how for winning a contract,
and have improved their reputation through swift responses to customers'complaints and an ability to capture clients'(hidden) needs (METI, 2001).
which allows every sales person to access general information about customers and previous correspondence concerning their complaints.
which customers'claims and inquiries are updated categorised and daily. These companies'intranet and electronically integrated customer database not only provide the latest client-related information,
and marketing capability to gain access to new customers and to expand their markets geographically.
and that the more customers or firms are connected to the network, the greater the benefits (spillover effects).
services and technologies via the corporate Web site, order exchanges with regular customers, recruitment and receiving customer feedback.
Around 60%of the firms with the Internet use it to learn about competitors, customers or suppliers.
External relations with customers as well as internal processes are being linked. Marketing and sales, logistics and delivery, after-sales service, supply chain management
Very few of its regular customers had used the Internet, and some preferred receiving confirmation of their order via fax or telephone.
Strong links with customers and suppliers along the value chain as well as the lack of competition in the related market may also discourage businesses from introducing new business models
although they still do not accept customers outside of Japan. In 1996 a company employee bought a personal computer at his own expense to use the Internet.
A free magnet offer campaign on the Web site combined with an on-line questionnaire to (potential) customers lured 1 000 visitors to the site during the peak early month.
but the major target audience was potential clients and investors, not individual customers. Some placed detailed corporate information on the site to illustrate their technology and financial base (Tiessen et al.
48.6 45.4 44.7 45.3 44.2 Customers do not use the technology 26.9 27.4 26.9 48.5 20.0 47.6 33.6 27.8 32.6 31.4 Finding staff with ecommerce
Cost factors (cost of reaching customers, cost of engaging in e-commerce, telecommunication costs) were seen also as largely positive for adopting firms
and highly positive about their strategies reducing costs to reach customers, with small engaged firms being almost as positive as large ones (OECD, 2002a.
and possibly more targeted range of customers either locally or globally, either in B2b transactions (automobiles, textiles) or B2c transactions (textiles, tourism, parts of retail
Since the Internet and many travel-related sites allow on-line customers to compare the price of 32 air tickets and other travel services,
On the other hand, the number of potential customers, some of whom may prefer a smaller agency's prices
and can represent an important last-minute solution for customers. Transaction costs over the Internet can be significantly lower than those of traditional distribution channels.
because customers may prefer not to make a purchase at a small on-line shop without knowing about its product/service quality and reputation.
which customers may not receive from larger shops. Some small on-line book retailers have been successful by distinguishing themselves from others through specialisation in particular kinds of (professional) titles
Others have attracted customers worldwide by offering both specialised products and customised services (Box 5). 33 Textiles Textile products,
The site has attracted customers not only in the United kingdom and Ireland but also throughout the world Australia;
The Web site now includes a customer feedback page that carries comments by customers who have bought an instrument through the site.
Some customers, impressed by the presentation of the instrument on the site visit the physical shop.
(i e. their customers) and customer push has been a major factor in the adoption of EDI by the sector (Iskandar et al.,
and these benefits of EDI are considered to be largely in favour of their customers. To realise larger benefits by streamlining business information and materials flows,
In B2b transactions problems are reduced because of the limited number of suppliers or customers, but cross-border transactions with new and unknown partners still present challenges.
and customers because it provides an easy-to-access redress procedure and may also save travel costs,
and customers that could exercise anti-competitive pressures and lock in..E-government E-government, the provision of government services on line, has high priority in many OECD countries.
and to provide legal certainty to administrations, businesses and customers. It was drafted in a technologically neutral manner
and may even be vital for customers claiming their rights. The country of origin of the web trader can have major consequences, for example, for their right of withdrawal.
Moreover, Article 5 requires the online service provider to establish an effective direct communication channel with its customers.
"46 The judgment implies that service providers cannot limit themselves to offering an e-mail address accessible for their customers through the website.
In order to attract new customers to its website, ebay had bought keywords, including trademarks held by L'oréal,
"That is not the case where the service provider, instead of confining itself to providing that service neutrally by a merely technical and automatic processing of the data provided by its customers,
and provides general information to its customers cannot have the effect of denying it the exemptions from liability provided for by Directive 2000/31 (see, by analogy, Google France and Google, paragraph 116).
which applies indiscriminately to all its customers; as a preventive measure; exclusively at its expense;
"As regards the above-mentioned question it notes that"it must be held that the injunction imposed on the ISP concerned requiring it to install the contested filtering system would oblige it to actively monitor all the data relating to each of its customers
"may also infringe the fundamental rights of that ISP's customers, namely their right to protection of their personal data and their freedom to receive
Exceptions are foreseen in the context of already established customers for the direct marketing of its own similar products or services by the same provider.
and their customers by taking legal action against spammers. 4. 1. 2. 3 Cookies and the eprivacy Directive Cookies are hidden information exchanged between an internet user and a web server,
otherwise be reluctant to approach their pharmacists for in front of other customers in a physical pharmacy environment.
only a low proportion of price comparison websites (17%)give customers the option of offers available from other Member States.
Different tools for approaching online customers exist. The classical way is for the traders or service providers to create their own website in the hope that clients will find their business
and commercial blogs offer content and services to consumers for free, earning revenue by selling advertising space on their sites to businesses that intend to reach those customers.
Customers rely increasingly on search engines to find their preferred product or service. Search engines charge advertisers on a pay-per-click basis. The trend is towards direct-response type advertising instead of display advertising.
when their customers are using search tools. However, the Commission services have received complaints from companies frustrated in their attempts to obtain TLDS
In parallel, the development of cross-border trade should also help increase the income of authors by attracting potential customers from all Member States.
Since the Internet allows distributors to reach different customers and different territories, certain restrictions on the use of the Internet by distributors are dealt with as hardcore restrictions.
For example, any obligation on distributors to automatically reroute customers located outside their territory, or to terminate consumers'transactions over the Internet
customers increasingly need to send or receive physical goods that they sell or buy online.
and all these operators are today competing against each other to offer their customers an improved product portfolio.
showing that customers (senders) are increasingly using alternative delivery providers. The main reasons for this choice could be:(
. ITA/WIK 2009.258 It is known that basic parcel services usually indicate services where customers hand in the parcel at the post office counter. 259
and customers using electronic-commerce. Many operators are introducing flexible delivery systems, such as local stores or automatic parcel stations265,
whilst express operators have introduced lower-cost products targeting customers less sensitive to delivery time. Furthermore, new business solutions such as parcel consolidators266 or online parcel brokers267 are being developed,
which facilitate the whole delivery process by providing customers with added value in the form of pre-delivery services (e g. presentation of available delivery alternatives and finding the best options in a given situation
which are reflected in a lower final delivery price for customers. In relation to innovations, new technologies have allowed operators to both improve efficiency
customers; other stakeholders. With regard to the complaints procedures in case of lost items, theft and delay, it becomes imperative that Article 19 of the Postal services Directive
and an indication of an international clientele composed of customers domiciled in various Member States,
in particular by the presentation of accounts written by such customers. Likewise, if the website permits consumers to use a language or a currency other than that generally used in the trader's Member State,
in terms of journeys made by customers, the e-commerce model results in a total distance of 10.09 km saved per delivery.
Over the past decade, an increasing number of firms have started actively to involve customers, suppliers,
Companies increasingly innovate with the aid of customers, suppliers, universities, competitors (Kruse, 2012), public research centres, competitors, groups of product users (Duarte and Sarkar, 2011), development partners,
The external knowledge is generated by the employees, business partner, customers, consultants, competitors, business associations, internet sales and service units, internal research and development units and academia.
26%of innovative firms were engaged in co-operation with other enterprises, universities, public research institutes, suppliers, customers and competitors in the EU-27.
In the Member States, the most common co-operation partners were followed suppliers by customers (respectively, 17%and 14%of innovative firms),
Shifting the focus towards exploiting resources outside the company's own market may dilute the firm's focus at the expense of its customers.
the authors Opening the boundaries of a company by incorporating knowledge generated by customers, suppliers, education institutions, consulting agencies leads to intellectual capital development through knowledge sharing.
the authors The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19), 2014 45 The constant changing needs of the customers pose a significant challenge on firm
However, this search for short term competitive advantage, by shifting the focus towards exploiting resources outside the company's own market may dilute the firm's focus at the expense of its customers.
And, by involving the citizens (as customers) for the new developments, we also see at an early stage which elements of the idea are successful and scalable,
because valuable innovation-related knowledge is being increasingly widely distributed to different actors, organisations (e g. companies, customers, suppliers, universities etc.)
and existing customers to test, give feedback and support each other in using the products and services that the company is providing;
this is where customers serve each other and contribute to product development and go-to-market strategies.
At the same time universities act as partners and customers of regional services, SMES and large companies; growth of venture capital markets This trend makes it possible for promising ideas
main customers and provide the largest share of funding. External demand from international organisations like the OECD, the United nations Development programme and the European commission has been on the rise in the past few years.
bar owners can rent it for their customers, visitors to the square can pay a fee to use it,
A r B o O k 2 0 1 5 a service to their customers. It is not clear (yet) who would be the logical operator of the new service;
customers (such as municipalities) would indicate the functional requirements and the industry would then respond with tenders based on their existing products.
or connectivity will add value for customers? Even a tech guru who wants to have time to read, talk and actually live,
but customers adopting.''This statement perfectly characterises the shift in mindset that is a hallmark of OI2.
or customers, in the development of innovative solutions. An engagement platform provides the necessary environment,
it is customers adopting. In OI2 there is purposeful effort focused on driving adoption of innovations.#
I want to see the biographies and the sociologies of the great customers and clients of innovation.
what customers adopt.''Pia Erkinheimo-Mennander, Head of Innovation Crowdsourcing at Nokia, explains (3: innovation failure rates have reached as much as 86 percent,(4) primarily because of the lack of end-user adoption;
and the customers who volunteered to be participants could use NFC phones even their own one
This will make more sense to the customers, who will experience this as an extension of the integrated system of a financial institution.
Hemfrid now has 10 000 regular customers and 1 326 employees 70%of them born abroad.
which is translated in turn to applied research leading to prototypes picked up by industry that markets the product to customers.
and customers with their needs and aspirations, need to be integrated by entrepreneurs who are able to create value.
business, and customers with their needs and aspirations, need to be integrated by entrepreneurs who are able to create value.
Knowledge & Innovation Mkt Business Incubator Network SW for idea management Observatory Expert entrepreneurs Lead customers Expert professors Mixed team (technicians+MBA
'Whether as customers, employees, managers, financiers, partners, or citizens in communities, every stakeholding individual can bring capital to the value creation process through their‘value creative capacities'and,
which was launched by General motors (GM) as a way of providing safety and emergency services to their customers.
Over time, Onstar has evolved as GM has learned more about the broader interests and needs of its more than 6 million customers as stakeholders in experience-based value creation.
‘What do customers desire to experience through their cars? How can information technology improve the driving experience,
which customers can enjoy personalised co-creation experiences that make driving more entertaining, informative, convenient,
and served customers, there are other key stakeholders such as public/private sector banks, non-banking finance corporations, microfinance institutions,
We have now to prove that customers will make them a reality. This is a challenge
For entrepreneurs, being in direct contact with potential customers is of tremendous value, as it allows market value, size assessment and direct product feedback.
the entrepreneurs must be comfortable and familiar with the notion that‘customers'can inhabit many roles as co-creators,
To traditional business thinking, the idea that Patagonia, the outdoor clothing firm, should set up an online platform to permit its customers to sell their used Patagonia products to those who might want them
helpfully, provides further insight to the customers'perception and assessment of their product throughout its lifecycle.
(and customers) before the venture even goes to market (and in some cases, before the product even goes into production!),
because the mass of customers already exist. This new mix of the collective creative with productive capacity and execution enables enterprises to identify,
and active customers to share combine and renew each other's resources and capabilities to create value through new forms of interaction,
In 2005 the CEO of Intuit recognised the impact of co-creation with customers when Intuit customer service teams began experimenting with online support forums moderated by enthusiast employees.
For Intuit, the company learned about the kinds of tax preparation questions that professional customers have
Through this collaboration, customers are able to purchase innovative products from a household brand and with that brand trust comes the confidence in its functionality.
and the cable TV companies were packaging these services to suit the tastes of the Finnish customers
a piece of cake for the Palo alto college boys who soon gathered hundreds of millions of customers in a market that was claimed to be impossible mostly by the traditional, nationally inclined lawyers.
The Innovative Lawyer Hemera 139 interesting technological innovation that was new and appealing to the customers.
the company has managed to display the complex relations between the company, its customers and advertisers,
From colours used on a button to different websites to see which site will increase sales, all in real life and with real customers.
and increasing interconnectedness of customers (Tidd and Bessant, 2005), companies depend on their ability to innovate
established companies were already using Web 2. 0 technologies to integrate customers and external experts into their innovation processes (Mckinsey, 2008).
and increasingly interconnected customers (Tidd and Bessant, 2005; Chesbrough, 2007) have supported a paradigm shift toward an open approach to innovation
2012) show that inbound activities such as the use of external relationships with suppliers, customers, universities and R&d labs for technology scouting and idea sourcing show a higher innovation performance.
Often customers come to us with a specific problem and we find an adequate solution for them.
Our customers have a lot of good ideas, which is why most of the time they take action
but we try to find adequate solutions that match our customers'ideas. However, as a consequence of their very customercentered approach, these small and micro firms often develop only one product prototype for a specific customer and his/her needs and requirements.
and for promotions aimed at targeted customers. Interviewee 1: We are actively using our home page to illustrate our products
and to inform potential customers about our services. We are very happy about the results we achieve with this tool.
Hence, unlike their larger counterparts they are used to collaborate directly with their customers and to perfectly respond to their needs.
but also customers, employees and other corporations are accepted as sources for invention. This study supports theoretical assumptions
and in this way created value for customers by leveraging their partners'or other organizations'different competencies.
First, we pay attention to how small firms develop strategies to create value for customers. Several firms faced rapidly increasing commoditization in their product markets
companies engage in open innovation to create value for customers in new ways and to create a more profitable business.
A business model defines the way companies deliver value to a set of customers at a profit.
or business model innovation to find new ways to create value for customers. Business success comes from satisfying real,
indeed, the company delivers existing flavours at reduced costs to customers in the flavour and flagrance market.
and that customers would be willing to pay a premium for high-quality sleep. Consequently the two entrepreneurs defined their business as a provider of healthy sleep,
Providing a healthy sleep should be considered the value proposal that the company makes to its potential customers.
QOD offers customers a new meaning to the product of quilts. Quilts have always been considered a product that keep people comfortably warm in bed.
because the customers were not able to envisage that the properties of a functional quilt such as TEMPRAKON could actually benefit their ability to sleep well.
the more rewarding it is for companies to differentiate their product to deliver value to customers in a way they could not anticipate themselves.
always responding to the customers'requirements. Curana competes in a highly competitive market and since the 1960s the market has experienced continuous pressure to consolidate.
what customers might value. Business model innovations start with articulating a customer value proposition. 17 During our interviews
all managers underlined that creating value for customers is the first and most important element in generating new business.
however, that unique customer value propositions are developed by questioning existing customers. In many cases, this would be a good recipe for incremental changes,
the relevance of the experience economy for innovating SMES New offerings can create value for customers in different ways.
the company can offer more convenience to the customers; or the company can reduce costs and thus the price of a product or service.
several of the successful SMES we analysed preferred to offer genuine experiences to their customers as a new source of value.
experiences have emerged as a next step in creating value for customers. Commoditization makes it increasingly difficult for SMES to operate profitably in established markets where scale
one of its major customers. Although growth and profitability were exceeding the expectations of the company,
producing accessories according to specifications and prices customers set. Moving from an OEM to an ODM allowed Curana to set its own price
and create value for its customers producing products with a customized design. Being an ODM would not differentiate Curana from other ODMS, however.
Their innovation adds value to customers and helps retailers reduce costs. In fashion rent is the most important cost factor.
if customers could experience shopping and buy fashion in a novel way. Nor is optimized shopping from a customer's perspective.
Finally, customers cannot check whether the clothes they are buying in the shop really coordinate with those they have at home.
After scanning, customers see themselves on large screens as a virtual, three-dimensional model dressed in clothes from various collections that the shop offers.
Customers can also be welcomed by a stylist with whom they discuss their personal style, but the software also can make choices for the customer depending in the skeleton, weight, age,
and evaluate the clothes the customers selected before they purchase. This process is called‘istyling'.'It creates new ways to change shopping
Customers experience an additional advantage: purchases are stored in a personal, virtual wardroom, which can be consulted any time.
Moreover, customers can see online at home how they might look in a new collection. This innovation is all about experiencing fashion;
Stylists even guide their customers through a transforming or restyling experience, subsequently changing, adapting, or upgrading prior dressing habits to professional standards So,
and service oriented into more profitable business models based that generate experiences for customers The role of open innovation is not in business model innovation is discussed not here.
This change in strategy created value for its customers and was highly profitable for the company.
and lead-customers. New technologies thus offer opportunities for small firms even in the so-called low-tech industry such as textiles
changes in customers'needs, and in offering customized products and services to clients (particularly in business-to-business industries).
Segers & Balcaen (see p 35) is a small Belgian plastics packaging company that continuously identifies new packaging needs among its customers. 33 For many other companies,
not amidst the mainstream. 22 Mainstream customers will only buy a technology product when the new technology has been proven,
what customers need from technology that is available from different types of knowledge partners. Small firms are successful as innovation champions
because they know how to bundle the right expertise of different technology agencies to solve a problem for their customers.
and about customers'self-image. Similarly, the founders of Quilts of Denmark intended to be providers of a healthy sleep, not quilts-makers.
what customers might value. Business model innovations start with articulating a customer value proposition. Creating customer value through game-changing
and highly profitable business models will usually not be developed by questioning existing customers. Sometimes the business model is straightforward.
they can create more convenient products for the customers. SMES may also wrap additional services around their product or offer genuine experiences to the customers.
Turning businesses under the threat of commoditization into genuine experiences for customers is a difficult target for SMES
but it is one of the most profitable strategies in the long term and a way to gain more power in the industry.
and therefor offer opportunities for SMES to pursue embryonic markets that are too small to attract large companies. o SMES have greater capability to specialize than large firms to offer customized service to customers. o Small companies may offer completely new
experiences for customers. These radically new ways of offering value for customers takes time to develop
and there are too many unknowns at the outset to guarantee a market big enough to attract big companies. 35 Figure 4:
We pay special attention to the role of customers and innovation partners in this process. Finally, several SMES have built a corporate reputation or brand as part of their strategy as a way to fight commoditization.
The customers (manufacturers) determined the prices, and the company could not add value because the product was easy for other bike accessory manufacturers to imitate, often at the same price.
and price reverted to Curana based on the premium customers want to pay for a unique and exclusive design.
Customers started to realize that Curana was becoming an important partner for their own success. Over the years,
Curana organized information sessions to promote its new ideas among potential customers. In this way, the company received valuable feedback from potential customers.
Realization is the fourth step. For Curana, this step started with 39 developing a high-end, three-dimensional model of the concept in collaboration with an (external) engineering partner.
It is driven a vision approach where direct interaction with potential customers is delayed until a later stage in the process.
Customers are still important, but they are not driving the company's innovation strategy. Through this strategy, Curana created bike accessories that were unique to the industry.
Only at that point did the company realize that it could increase the uniqueness of its designs (and the value for customers) further by switching to a proactive innovation strategy.
This change in strategy gave the company more degrees of freedom to act (customers were no longer taking the initiative)
Philips spent significant energy educating customers about how to make the fries tasty and crispy in an Airfryer;
essentially, customers had to learn to fry again because hot air frying differs from frying in regular fryers.
With Philips communicating with customers via its My Kitchen Web site, different customers are already experimenting with new ingredients, meals, and so on.
and the Airfryer, explaining to customers how they could optimize the device for several frozen snacks.
The food separator allows customers to fry an entire meal and can inspire snack producers to develop different combinations with the same frying time as a ready-to-eat meal.
The new possibilities the Airfryer and its Rapid Air Technology present only emerged after customers started to use the device and when other players in the market, such as snack producers, envisioned new market opportunities.
Each firm stayed focused on its product markets and customers. The most interesting example in this respect is Curana.
including its customers. Outside that open innovation network, the company cannot rely on its reputation and it has to start from scratch to build its network of partners
and customers. 27 Open innovation networks thus enable a company to deliver value in completely new ways to its customers.
however keep the company tied to the existing innovation partners and customers. In a phrase, innovation networks enable,
The race into ever more complex applications of chemicals coincided with a continued focus on the same type of customers and applications.
They stick to their value chain partners or customers. In several cases, the innovation network is one of the factors that limit the options to change over time.
which is granted to European companies that use design to create added value for their customers
They stick to their markets, customers, and partners. Open innovation networks enable a company to deliver value in a completely new ways to its customers,
but they also keep the company tied to the existing innovation partners and customers. Innovation networks enable,
but they also bind. Small companies must use relatively inexpensive but credible ways to develop a reputation or brand.
Examples as we have seen in Chapter 2 are reducing costs for customers (e g.,, Isobionics), increasing time efficiency, solving problems (e g.,
, DNA Interactif Fashion), increasing the attractiveness of the customers'products or services (e g.,, Curana), and providing new functionalities and increasing emotional value (e g.,
Each firm we examined started its open innovation adventure with a new concept about how to serve customers better.
In some cases, customers identified a problem themselves; in other cases, the entrepreneur devised a new concept.
Later on, Curana established strong bonds with suppliers, the designer community, knowledge centers, and customers. Working with external partners over the length of the value chain (from design to production and sales) leveraged the business to new opportunities that could not have been seized without collaboration.
which it could transform into extraordinary solutions for its customers. The network was a powerful tool in speeding up the innovation process and in combining novel designs with new materials.
PROF members (Patient Room of the Future)( see p 59) jointly created value for customers in yet another way.
and with lead customers on the other hand is essential for understanding how the company can continue to make profits in this way.
if they could offer customers the experience of a healthy sleep by adding new functionalities.
Eco-radiators appeal to some customers because they reduce the carbon-footprint of heating houses and buildings.
because some customers value a nicely designed radiator such as the Heatwave (see figure 6). This radiator is developed by an artist, Joris Laarman, and Jaga.
because customers make a clear distinction between companies that offer the authentic experience and those that are copying it 34.
First, they gain direct access to potential customers although they are not in a sales mode in PROF
In addition, a showroom presents the brand new idea of a patient room to potential customers.
Visiting the showroom has the additional advantage that potential customers can invite different manufacturers at the same time.
and that Curana would try to pass part of the price increase to its customers. In an innovation network, partners are interconnected
Take for instance, the example in which a company grants exclusive designs or products to its customers.
If direct customers are the target customer, then the innovation network will most likely be small and easy to manage.
thus changing the relationship with customers profoundly. The combination of different fields of expertise to develop a new offering can lead to attractive profits
It still took two years to develop a prototype that could be demonstrated to potential customers.
Most customers and health authorities perceive that the Airfryer is a highly innovative product that drastically reduces the need for oil
which the company brings to potential customers (not necessarily existing ones). A radically new value proposition may offer customers new meaning to the product or service offering.
The network of partners: Common in all cases is that the SMES establish a network of external partners.
the customers'reaction is not easy to predict. In addition, the SME depends significantly on its partners'commitment.
market sources (suppliers of equipment (i), customers (ii), competitors and other firms with similar activities (iii), commercial labs, private R&d organizations, and consultants (iv;
Isobionics'customers, notably food manufacturers, can use Biovalencene--the first commercialized flavour by Isobionics to create natural citrus flavours and fragrances for their products without worrying about quality issues that plague natural extracts.
Marketing and selling technology products to mainstream customers, Harpercollings Publishers, New york. Chapter 3 23 See previous chapter for a more detailed description how Curana developed the B Lite.
and computer engineers called Bellkor's Pragmatic Chaos. The group developed software that is at least 10%more accurate than Netflix's current software (Cinematch) at predicting which movies customers will like based on their past preferences.
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