BibSonomy :: bibtex  ::

title = {Customer-Driven Innovation Management},
author = {Andreas Cornet and Axel Krieger},
editor = {McKinsey {\&} Company Automotive {\&} Assembly Extranet},
url = {https://autoassembly.mckinsey.com/html/knowledge/article/WCB_3.asp},
year = {2007},
description = {Open Innovation},
abstract = {As the sustaining power of many traditional automotive industry growth levers has been blunted by changing industry dynamics, the ability to innovate well may be an auto company's best weapon against commoditization. Learn how to develop vehicle innovations that engage customer hearts as well as minds. ------------------------------------------------- A recent McKinsey {\&} Company survey of German high-tech and automotive players reveals a clear, positive correlation between a company's investments into innovation and above-average levels of profitable growth. But innovation untempered by customer knowledge simply raises costs. Research shows that the process for identifying customer needs-based vehicle innovations involves three distinct phases: Target customer segments. The first phase deals with the development of a needs-based customer segmentation. This can be created using a number of different methods, including perceptual maps featuring multidimensional scaling techniques, which can visually array market data into logical groupings. Best practices include being fact-based, taking a global perspective, performing both a thorough segmentation and a robust positioning analysis, and including solid competitive intelligence and customer trend assessments. While a best-practice segmentation is based upon the reasons that customers purchase the vehicles they do (e.g., "makes me feel attractive," "it's safe to drive," or "it's trendy"), one must also realize that what consumers often say is not always how they actually behave. McKinsey's methodology separates out the consumers' true preferences expressed in their actual purchasing behavior along the purchasing process. Model profile and positioning. In order to create an effective plan for long-term product differentiation, a deep understanding of the competition is crucial. Such an understanding must include a market perception of competitors over time, an assessment of current products versus the competition in terms of purchasing reasons, and the relevant areas in which the introduction of a specific innovation would generate real customer benefits. Performing a cost-benefit analysis of the proposed vehicle components and systems compared to competitor benchmarks can surface questions regarding specific product decisions. Benefits should be analyzed against competitor-derived targets across all important systems in this manner. Where component performance matches the target, the company can be assured that its investment is delivering value; where it underperforms the target, additional spending will be required; while places in which performance exceeds the target are opportunities for reducing costs. Market penetration. Three specific tools will be invaluable in developing a market penetration plan: the purchasing funnel, conjoint analysis, and product life cycle management. The brand's purchasing funnel performance, which measures how effectively brands reach customers during the shopping cycle, often provides the first glimpses of where a brand's bottlenecks lie. Model pricing can be developed using conjoint analysis, which makes it possible to arrive at a customer-influenced pricing strategy that takes into account value trade-offs. Life cycle management recognizes that cars generate specific production volumes over their production lives and seeks to optimize not only these volumes, but also the transition to the next-generation product. The goal throughout life cycle management is to maximize vehicle production levels by employing several different levers: product attractiveness, price attractiveness, communications, and markets and market shares. The rollout of an effective innovation management system requires that managers inhabit three different "worlds" – the world of research, the world of development, and the world of marketing.},
keywords = {imported }