Dialogue with Customers: Secret to Innovation Strategy

Abstract

Enterprises are discovering a rededication to customers in ways rarely practised other than by the entrepreneurial firm. However, quality and restructuring methodologies have returned executives to their own raison d'etre by positioning customers at the heart of business survival. At the same time, cross-boundary alliances are demanding new partnering techniques with all stakeholders, including customers. New initiatives are commonplace, but are generally without an understanding that something is fundamentally different between customer satisfaction and the success of your customers. This article introduces the concepts in ways that are easily practised. Simply stated, treat your customers as sources of knowledge, not someone to whom you solely deliver products and services. By practising value-system (rather than value-chain) strategies, companies can take advantage of the business opportunities afforded by a collaborative economy. Similarly, by defining Strategic Business Network (SBN's) rather than Strategic Business Units (SBU's), companies can leverage all available knowledge sources. Most importantly, a symbiotic relationship with consumers, customers or clients can help a company envision products and services for unarticulated needs and unserved markets. Companies which are practising new ways of interfacing with customers are realising significant business results. A profile of customer innovation at Steelcase North America provides an illustration of this new partnering relationship.