In Every industry, a product/service produced/rendered by an Organisation/Service Provider is shaped either by the market trend or by the specific needs of the customer. However when it comes to the innovation in a product(or the design of a product)/service ,a question may arise as whether the innovation should necessarily come as an offshoot of the customer needs/demands or the vendor/organisation (which produces/renders the product/service) will provide its customer, an innovative way of improving the product/service. More or less, the innovation is going to be a short in the arm for the customer, irrespective of whatever way it is being done and might give the customer an edge in that relevant industry, atleast most of the times.
Let us see now with some examples as how innovation happens due to customer needs & demands and how as a vendor/service provider, an organisation is providing the innovation, from its side, to its product/service and thereby help the customer achieve its objectives .
Case 1a : Innovation Done as needed by customer needs and demands.
Let us see some interesting examples. Let us take few sports which are being watched globally by many people - Cricket, Tennis , Football. Being a sports loving
nation, i assume the readers to have quite some idea on these games- though i assure everyone that am not going to take a deep dive on these games.
Now we will see how innovations on these games were done because the need was felt by the playing nations/individuals (who are the key stakeholders).
Cricket:
In the 1990s (during the advent of Satellite Television era), Cricket got televised a lot. As a result more spectators came to the cricket stadiums in many countries (where Cricket was played) and the TV viewership became high. Cricket became highly competitive and there was more stake for the playing nations. This is where many innovative changes, as necessitated by the needs of the cricket playing nations, were put in place. One of the very first change was the introduction of 'Third umpire'(a person who has technology support to see the match from various close angles to make the right decision) to make/pronounce hairline(too close to be decided by seeing from the naked eye) run-out decisions. This usage of technology innovation, gave the right verdict almost all the times except for the rarest of rare cases. This innovation was further taken for addressing some other aspects of the game as well. The second major innovation that happened was the ball-tracking mechanism. This was needed to decide whether a batsman/batswoman could be given out as "LBW" (a way of getting a batsman out). There is an associated innovation , called snickometer- which decided whether a batsman/batswoman had nicked the ball(assuming that the ball was caught legitimately (as per the cricketing rules) by an opponent fielder. The third innovation that the game has seen now was developed in this decade.There became an increasing scenario where the innovation made from the usage of
Third Umpire technology was insuffice. Even with multiple cameras with Zoom-in features, different angles, there were very tight hairline calls to be made in case of run-outs, stumpings. Replays shown through the use of these cameras produced inconclusive evidence. This is where LED displays were fitted into the Stumps.Now this had a telling effect. With the cameras and their angles, the LEDs emitted a colour (RED), whenever the bails got dislodged from the Cricket Stumps.This ensured that the
third Umpire gave the right verdict , by seeing whether the batsman was in the crease or not, at the time of the light emission. This way the third empire helped the on field umpire to provide the right decision. Ultimately Cricket becomes the winner as correct decisions are made because of these technological innovations.
Now who brought this innovation and why ? The Governing body of Cricket, the International Cricket Council(ICC), did this because the players of the cricket playing nations, the cricket boards of those nations wanted these changes to be done, as they had seen/felt the pain of getting wrong results, thereby even loosing Cricket matches at times.Hence these technological innovations were done, for the benefit of those, who play the game. Therefore those people were the initiators or responsible for these innovations to happen, in the game of Cricket.
Tennis: Hawk-Eye is one technology innovation which is there in the sport of Tennis for quite some time. When a person serves or when there is a rally(back and forth playing by the players standing across the tennis net) going on between two players and if the ball is declared OUt(ball going out of the established lines for
playing) by the Umpire, then the player who lost the point, challenges that decision. The Hawk-eye tracks the ball, with a simulation of where the ball would have landed and if it shows inside the established lines(say baseline,tramlines-ignore these jargons!!) then the Chair Umpire, reverses his/her original decision and
thereby the loser(of that point-in the first instance) gets either that point or that is replayed(depending on some other factors - which is irrelevant at this point). Now, how does this innovation has come. The Players of the game have been feeling the pinch, especially in Major tournaments(called the Grand Slams), where even single point lost in this fashion, can make a difference between victory and defeat. The players' body, and top-ranked players saw the need for an improvement and as a result
of which the administrators of the game went ahead with this innovation and the result ensured an error-free(induced by human's limitation of sight-seeing of a high- speed object) tennis match.
Football: Video Assistant Referral(VAR) is an innovation made in Football. It got debuted in this year's(2018) FIFA world cup. With that, referees were able to accurately decide whether the ball crossed the goal-line before a keeper or any other player could pull it back. This ensured that right scoreline was there for a
given match and ensured the outcome of a match was a fair play in terms of goals-scored. No controversial goal was allowed, even inadvertently. Obviously, all the current and past players across various football playing nations have seen/felt the impact of these issues and have been longing/hoping for a better state , on thisapsect. The FIFA brought this innovation to the game , keeping in mind the impact this can have for the outcome of a game, considering the huge fan following that this
game has. This has paid dividends now and the game is the winner.
Thus we have seen how important and essential it is for the users/stakeholders (in this case) to portray their needs/demands so that the innovation made is done as per
the needs of the users.
Case 1a : Innovation Done as needed by customer needs and demands - Here am going to give a conventional example.
Let us take the example of an imaginary retail customer. The customer wanted to improve her shop's reach(of selling products) to the outside world, by all means. The Service Provider(Vendor) created an enterprise web application and made it ready for use. End-Users of the web application were allowed to register their names and could buy their products of choice available. Once the products were added to their shopping cart, they made an online payment which was integrated with the shopping system. This was the first step that was in line with the customer's need of making his/her business spread across the globe. Next step of innovation was to design the application such that it catered to smart devices. The look and feel of the application remained the same irrespective of the application being accessed in a browser, smart phone devices or any hand-held devices . Now the vendor was to innovate further by introducing a custom app which could be downloaded using a mobile/smart phone.
devices . From this app, an end-user saw what products have been newly launched, what were the fast-moving products (to give a feel of frequently selling products to the end-users/ buyers) and so on.. The vendor was successfully able to innovate based on the customer needs/demands, in this case.
Case 2: Innovation done by the Service Provider or the Vendor Organisation, based on its Own understanding/assessment of Customer needs/demands.
Do you really think , that a service provider or a vendor will be able to provide solution(s) to the needs of the customer based on its own analysis/assessment ? Yes ,
it could happen. I have seen, one of the media research company - doing data analytics for Media based folks-Advertising Agents, Television Serial directors,
Producers, and retail shops - who are it's customers and for whom, it provides relevant data which helps it's customers getting an edge over their competitors.
Another example is that Cloud Computing. Many IT customers do not know how to minimise the delivery related cost, infrastructure cost. The IT vendors provide various benefits implicitly knowing the needs of their customer by providing different cloud services to address their customer concerns, though there are aware Customers who explicitly also ask the Vendors for specific services (which is altogether another issue).
Taking some more intriguing examples, the DRDO (defence organisation of INDIA) provides the necessary innovation or right kind of ammunition to it's customers, the
Indian Army, the Union Government, based on its understanding of the needs of it's customers.
Conclusion:
In general, innovation can be effective if a vendor or service provider knows the needs/demands of it's customer. The question is without knowing the pain point of the customer, how would your innovation be useful or powerful ? If it were not that much important, why a data driven and process oriented approach like Six Sigma should talk about the voice of the customer , getting the customer needs from various techniques liked focussed workshops, Questionnaire, Face-to-Face ,... and emphasis focus on techniques like Kano Model[Prioritization of needs (of the customer)]. The Whole approach is thought to be from a customer-centric perspective. So how can we do
innovation without explicitly knowing customer demands/expectations/needs ? The answer is that it can depend on the industry that we work or the amount of knowledge
that the Vendor/Service provider has, in any industry sector or in a specific unit in a given industry. Imagine an organisation working on Robotics. Assuming
Commercial Robots are allowed (means that Robots can be used by public - may be with some sort of regulation/compliance). Now that organisation would have innovated
based on its own understanding of the needs of its potential buyers(the public). The probable buyers of that Robots would be enquiring what the Robots are capable of, before they buy the Robots. This is a case of the vendor having more knowledge about the product, than the customer(consumer). Similarly, in retail, data analytics can be made and the vendor can provide a software as which items move quickly on which day of the week , for which the vendor can have that knowledge and the vendor
provides that innovation as a value add to it's customer. Therefore , in reality, you may see that in many cases, the customer has to provide his/her needs/ demands
for an effective innovation by the Vendor/Service Provider. But in some cases, there could be also that the Vendor or Service Provider can provide the right innovation to multiply the business of it's customer.