x
x
BACK

CONSUMER AND TECHNOLOGY BASED INNOVATION

CONSUMER AND TECHNOLOGY BASED INNOVATION

04.10.2017

Today's rapidly changing technology requires companies to quickly transform their strategies and constantly adapt to new dynamics of the industries they operate. While like 'Cloud' technology is still not widespread enough, technologies such as Artificial Intelligence (AI), Internet of Things (IoT) and Augmented Reality (AR) are already started to find application areas.
When this high rate of technological change is taken into consideration, it is not very meaningful for the companies to try to take regular reactions. However, most companies do not approach innovation in a strategic way and do not consider how technology will affect the long-term success of the company. In fact, it is very clear that innovation processes need to be improved. The key to successful innovation is to ensure effective coordination of all employees, customers and technology partners.

At the same time, when companies integrate innovation into their processes, they must consider that they have developed technology strategies that meet corporate strategies and how new innovations will affect users' experiences.

Besides, it is possible to offer higher value-added products and services for companies that encourage the creativity in and out of the organization. Meanwhile, companies should keep in mind how their innovations will affect the consumer experience. Achieving the best experience for consumers, customers and employees helps to transform a good strategy and technology into a system that improves innovation processes. In addition, adapting this technological transformation to consumer needs further increases the success of innovation.
For example, IKEA has developed a new application called 'Ikea Place' with AR integration. With this application, IKEA customers can see how new furniture they want to buy will fit in their homes. The application scales products with 98% accuracy thanks to AR technology, and shoppers can visualize the products almost like at home. IKEA, which will produce about two thousand products with AR in parallel with the launches of the products, will first focus especially on sofas and chairs. Thus, IKEA intends to increase its effectiveness in online furniture market by creating a competitive advantage with its wide customer network and applicability of AR technology.

Another example of this is 'LEGO Ideas' platform that LEGO has developed. LEGO has launched a product creation platform for its young and adult customers. The platform is an online community where users can create their own original LEGO designs, which can be discovered by other users. Also, users can vote on submitted designs and give feedback. If an idea gets ten thousand votes within a specific period, then it is produced by LEGO and sold worldwide. The user by being recognized as an opinion owner, will have right for final product approval, a percentage of sales, and right on all packaging and marketing. With this concept, LEGO rewards loyal customers for their innovativeness, creativity and entrepreneurship.

As an additional example, DEWALT, a power tools manufacturer, produces sustainable products that offer solutions to new challenges especially in construction industry. DEWALT has an award-winning collection of customer information databases with over ten thousand users to understand their needs for technology and innovation. Thanks to this platform, the company provides an environment where professional business partners such as dealers and distributors, as well as end users, suggest their ideas. In order to be more proactive in the market where competition is very intense, with this fast and accurate assessment platform, the company manages innovation through a mechanism in which all customers are involved.

Therefore, it is a key competitive advantage for the companies to adapt both the latest technologies into the products in the fastest way, and to engage customers and consumers into the innovation processes. It is expected that these transformations will continue to increase in different industries.

Companies need to determine how to regulate internal and external resources to find new technologies that can help them achieve their strategic objectives.  Also, the approach could include building an online platform, testing the real impact of new technologies, quickly sharing the results of pilot applications, and quickly scaling the initiatives across the company. To facilitate this transformation, we thoroughly analyze innovation and develop best solutions for our customers.