Tibor Dőry

Innovation and excellence

Management methods for innovation transformation


The role of users and customers in industry

Before we move on to a more detailed presentation of the different ways of involving users and the related management practices, we need to distinguish between the specific motivations and needs of users and customers. In line with the volume's focus on industrial players, the description primarily applies to them, but it can also be applied to other economic sectors. First of all, it should be noted that in an industrial environment, users are generally not individuals, but small and large enterprises whose suppliers are working on a number of innovative solutions. On the other hand, due to their nature and their role in the supply chain, suppliers maintain close relationships with their customers. In many cases, they supply a few dominant customers, so their revenue depends to a large extent on their end-product manufacturing customers, mostly OEMs. It should also be noted that the developments of supplier companies are determined by a small number of customers. Thirdly, end users do not make purchasing decisions themselves, but make recommendations to the purchasing organisation, typically the management of an OEM. Consequently, we can say that users are typically employees of a customer organisation or customers of the customer organisation who work with the product being developed on a daily basis.
In corporate practice, we consider the managers and employees of the organisation making the purchasing and procurement decisions to be customers, who in most cases do not use the subject of the procurement or the developed products. However, the roles of users and customers differ in innovation processes, and for the purposes of our topic, we cannot avoid defining the differences between the knowledge of users and customers (Table 3).
 
Table 3. Differences between users' and customers' knowledge
 
Customers
Users
Type of knowledge
Mostly explicit
Mostly tacit, implicit
Source of knowledge
Wide range
Individuals
Innovation guidance
Short-term changes in market demands
Long-term vision for innovation implementation
Purpose of innovation
Incremental improvement of existing products and services
Introduction of radically new products and services and improvement of existing ones
Examples of knowledge categories
Feedback on ongoing projects, development proposals, problems with existing products and services, new industry requirements
Usability, user experience, understanding the work environment and needs, future needs
Methods for acquiring knowledge
Feedback meetings, management and sales consultations
User studies in the work environment, interviewing front-line workers, creating prototypes
Methods for sharing knowledge
IT systems
User workshops, informal interactions with different users
Methods for using knowledge
Product specification lists, roadmaps
Developing a vision for the future, collaborative research projects
Challenges
Convincing customers of the value of innovations and new developments, rapidly changing needs
Difficulty establishing contact with end users, limited access to user data for data protection reasons
 
The experiences of company interviews conducted by Abrell et al. (2018) highlight that gathering knowledge and experiences from users is by no means an easy task, as these are often mixed with the user's feelings and subjective views. Similarly, gathering knowledge from customers is not easy either, as we are not talking about individuals, but communities of professionals who may have diverse opinions. In any case, both users and customers can be important sources of development suggestions. Due to rapidly and often chaotically changing market demands, finding the direction and focus of development is a serious challenge, which is particularly important in the case of digital technologies. In addition, the pace of product development must be faster so that the company can offer trendy new features to its customers. Feedback, development suggestions and requirements from customers are of decisive importance in subsequent purchasing decisions. However, the factors included in the list of requirements are rather conservative in terms of product price, performance and reliability, and therefore induce incremental rather than radical innovations on the part of developers. In addition, customers are typically unable to articulate their needs beyond the short term, making it difficult to define longer-term innovation goals and then launch innovation projects to achieve them. In contrast, asking users for their opinions and listening carefully to their suggestions goes beyond improving individual features of existing products, which in the longer term can serve as a kind of guide for implementing radical innovations.
Since user knowledge is often difficult to separate from the user, it is essential that those working in research and development try to make the users' tacit, or implicit, knowledge explicit in some way. Knowledge related to the use of products and increasing their functionality, as well as suggestions for modifications, can be most easily obtained through interviews and discussions. However, it is not easy to obtain usage-related data from users, who fear that if it falls into the hands of their competitors, it could jeopardise their competitive position. Consequently, it is advantageous to directly involve users in corporate innovation processes. They make it much easier to access user data and can also help to filter and interpret it. Users can also greatly assist product designers and developers in navigating the vast amount of data collected through digital products and components and extracting relevant information.
Of course, there are many challenges to overcome when extracting and collecting user knowledge and experience. Due to the nature of corporate practices and organisational structures, those working in research and development are unable to interact directly with users. It is much more likely that those working in sales or procurement will come into contact with users, but user information and development suggestions are less important to them, and they are not motivated to do this by their incentive systems. They only organise meetings or group consultations with users if they can derive a direct benefit from them, i.e. further sales. Furthermore, it is not easy to convince customers to allow the supplier to see the sold equipment and devices in operation. Another problem is that it is not easy to convince customers and buyers to introduce new solutions and demonstrate their advantages to them; they tend to stick to slightly improved versions of the old solutions, the price of which does not differ significantly from the level people were used to.
 

Innovation and excellence

Tartalomjegyzék


Kiadó: Akadémiai Kiadó

Online megjelenés éve: 2026

ISBN: 978 963 664 182 5

The aim of the book "Innovation and Excellence" is to inspire and encourage company leaders, managers, and experts to initiate and implement innovation transformations with the help of professional literature and corporate case studies. Another important goal is to help develop the innovation capabilities of small and medium-sized enterprises in particular by sharing simple, proven management methods that can be tested in practice.

The first part of the volume reviews the factors of corporate excellence and success, then highlights the possible sources of innovation, with a focus on the role of users and employees. The empirical section presents a detailed description of the supportive role of the workplace environment and creative working conditions based on corporate case studies (AUDI, BOSCH, MELECS). The volume concludes with a description of selected tested practical methods and management techniques that readers can try out in their own businesses.

Hivatkozás: https://mersz.hu/dory-innovation-and-excellence//

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