Innovation And Customer Needs: A Literature Review

Importance of Innovation in Business Operations

Innovation plays an important role in supporting the sustainable functioning of business in diverse international markets. Innovations in the processes and the product or service offerings of the enterprise help the same in attracting the attention of the target customers and thereby enhance the brand value of the same. Innovation in the context of an organization is specifically based on the technologies that are utilized by the same while designing its propositions as per the identification of the market demands. The key changes that are undertaken by businesses ate based on the identification of the needs of the customers and the propositions that are developed by the competitors. The discussion will be undertaking a literature review on the innovativeness and the manner in which it is facilitated through better understanding of the needs of the customers. The different aspects of designing is being enumerated as a part of the review, which will be helping to identify changes that are undertaken by businesses in order to facilitate sustenance.

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User experience forms the major part of the designing process that is undertaken by organizations. Liem, André and Eric (2012) stated that the ISO standards marked the user experience as the perceptions and responses that are forwarded by the users through the utilization of a product or a service or even through anticipation of the utilities that might be derived from the same. Analysis of the user experience helps organizations in understanding the different modifications that might be undertaken by the same in order to enhance the market holdings. Wooder, Stella  and Steven  (2012) stated that the user experience is one of the major considerations that are undertaken by organizations in order to enhance their respective market holdings. However, Bogers and Joel West (2012) argued that most of the organizations are concerned with the consumer experience while buying a product or surfing through the propositions of organizations. Differentiation between user experience and consumer experience is established, as user experience refers to the actual users while consumer experience mainly refers to the expectations of the customers before or while buying the product (Kraft 2012). The long term objectives of businesses are largely dependent on the continuous quality management of the same while operating in diverse international markets. Norman, Donald and Roberto (2014) stated that the changes in the organizational operations are based on the retention of the customers through satisfactions of the same through the development of products. The positive development of organizations is dependent on the continuous innovative approach of organizations based on the changing needs of the customers.

Identification of the target users of products and services that are offered by businesses forms the foremost step that helps the same in inducing different innovations. Liedtka  (2015) stated that businesses undertake different innovative measures through the identification of the needs of the users by different surveys. The surveys that are conducted by businesses assists the same in undertaking decisions of changes in the systems and operations. On the other hand, Al  et al. (2014) stated that the ident6ification of the preferences of the customers helps organizations in inducing the favorable practices in the product or service development process that is undertaken by the same (Kraft 2012). Targeting a band of users through segmentation of the markets helps organizations in positioning their offerings in an efficient manner. Hameed et al. (2012) stated that the innovation process that is undertaken by organizations relies on the developments that are made by the other competitors in the market. Innovation helps organizations in achieving a competitive advantage over the other players in the market. Therefore, the primary aim of organizations is to undertake different assessments on consumer behaviors and thereby develop processes in order to enhance their chances of sustaining in the international markets.

Role of User Experience in Designing Processes

Bin (2013) stated that the key elements of change in the organizational context is based on the sustainability of the same while operating as per the identification of the needs of the customers. Teixeira  et al. (2012) also added that the capabilities and competencies that are faced by the business in the internal and external environments influence the innovative approach that is undertaken by the same.  The workplace culture and the management control over the operations that are undertaken by the workforce is one of the major aspects that is required to be considered while assessing the innovative capabilities of businesses.  

Liem, André and Eric (2012) stated that organizations undertake different modifications in the processes and the products or services that are offered  by the same through assessment of the market demand. However, Fuller  et al. (2012) stated that the market competition that is faced by organizations and the needs of the same to achieve competitive advantage supports the growth and sustenance objectives of the same while operating in diverse economies. Empathy is one of the foremost steps that are undertaken by the R&D department of organizations in order to understand the needs of the customers (Kraft 2012). Empathizing the demands of the customers helps the organization in framing the idea of the proposition that might be delivered by the organization.  Al  et al. (2014) stated that empathy is one of the chief constituent of the design thinking process, as it helps organizations in placing themselves in the place of the customers to identify their requirements.

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The suitable identification of the needs of the customers helps in enhancing the planning process and the product or service development process of organizations. Prioritization of the tasks that might be undertaken by the organization while fulfilling the needs of the consumers will be helping the business in maintaining the efficacy of the functions while operating in diverse international markets. On the other hand, Seltzer, Ethan and Dillon (2013) stated that efficacy of the different designs that are developed by the organizational R&D departments helps the same in supporting the innovative approach of the same while operating in diverse economies. The prototyping activities that are undertaken by businesses help in confirming the design outset and thereby receive feedbacks from the customers, which helps in the identification of the change priorities. Palacios  et al. (2015) stated that prototyping the design helps organizations in understanding the key areas which is to be prioritized by the organization in order to adhere to the requirements of the customers. Liedtka  (2015) stated that Brainstorming new ideas helps organizations in undertaking the smooth functioning of the product and service designing procedures.

The most viable steps that are planned by businesses are based on the innovative ideas that are perceived by the same in order to resolve the issues that are faced by the customers. Modifications in the business processes are facilitated through the proper identification of the chief issues that are faced by the customers and thereby formulate strategies in order to resolve the issues (Kraft 2012). The proficiency of problem solving activities of organizations helps the same in inculcating the innovative culture within the core values.  The designing mindset and the prototyping of the designs helps organizations in maintaining their efficacy of supporting the innovative approach while operating in diverse international markets. However, Wooder, Stella  and Steven  (2012) noted that prioritization of tasks by the organization between core tasks and the general ones helps the same in enhancing the operations of the business. Analysis of the different user experiences helps businesses in undertaking further modifications in the product or service offerings in order to cope up with the expectations of the customers.

Differentiation between User Experience and Consumer Experience

Modifications in the product and service are either exploratory or adaptive in nature, which helps businesses in maintaining the efficacy of the innovative functions. Altman  et al. (2015) stated that the exploratory modifications helps organizations in developing new products or services in order to serve the needs of the customers. On the other hand, Boer, Laurens and Jared (2012) stated that the adaptive nature of change that is undertaken by organizations helps the same in bringing forth innovations in the existing products, which helps organizations in reducing the risks that might be faced by the same while undertaking an explorative design. The enumeration of different risks that might be faced by organizations while undertaking the change in the systems or the products supports the uninterrupted growth process of the same in the different economies.  The design of the product includes the identification of different technological aspects that might be utilized by organizations during the process.

Nylén, Daniel and Jonny (2015) stated that suitable identification of the technologies that might be utilized by organizations while undertaking the design process of products or services helps the same in understanding the up- gradations that might be considered. Anderson et al. (2014) stated that organizations undertake innovative measures in order to cut off costs through implementation of latest technologies in their processes in the global markets. On the other hand, Bosch, Petra and Jan (2015) noted that the organizational innovative approach helps in enhancing the performance and goodwill of the same through customer satisfaction. Customer satisfaction is one of the primary objectives of businesses. Therefore, the processes that are devised by businesses adhere to the requirements of the same while operating in diverse international structures.

The mindset of organizations while undertaking changes in the systems and operations of the same is dependent on the sustainability options that are made available to them. Norman, Donald and Roberto (2014) stated that organizational modifications are based on the assessment of the capabilities and competencies that are faced by businesses while operating in diverse international economies. Explorative mindset of organizational management helps the same in enhancing the operations through induction of new designs. However, Heikkinen, Maarit and Hannamaija (2013) stated that there are considerable risks while undertaking explorative efforts as organizations are unaware of the preferences of the customers. On the other hand, Hsieh  et al. (2012) argued that the explorative functions of organizations helps the same in maximizing the chances of maintaining uniqueness in the operations over the existing players in the market.   Bogers and Joel West (2012) supported the adaptive nature stating that it helps in enhancing the operations of business through dynamic modifications in the existing products or services. Yoo  et al. (2012)also stated that the lower levels of risks that are faced by organizations while implementing the adaptive innovative model in the organizational structure helps in ensuring the sustenance of businesses. The product or service development that is planned by businesses is dependent on the identification of the capabilities and competencies that are faced by the same.

Identification of Target Users and Survey Conductance

Organizations undertake steps to develop different innovative strategies in order to cope with the technological advancements and the changing requirements of the customers for sustaining in the international markets. Hameed et al. (2012) stated that sustenance of organizations in the market structure is the topmost priority which guides the operations of businesses while operating in diverse international markets. The modifications in the organizational functioning are based on the continuous innovation in the processes and the service or product offerings as per the expectations of the users (Kraft 2012).  Organizational operations are specifically based on the assessment of market intentions. Therefore, the innovative approaches that were considered by businesses completely depended on the identification of market trends and the consumer behaviors. The different approaches that arte undertaken by businesses are based on the sustainable approach of the same while adhering to the requirements of the customers. However, cost of undertaking the innovation processes acts as a constraint to the smooth functioning of the business operations.

Therefore, the review of different literatures has helped in identifying the essence of innovative culture of organizations in supporting the role sustenance. The assessments that are undertaken by organizations through customer surveys and reviews assist the same in undertaking specific innovative processes of the businesses. Empathy, ideation and designing the process through thorough prototyping activities helps organizations in maintaining the efficacy of the same while operating in diverse international contexts.  The product development process is prioritized through the identification of user needs. The paper delineates the different contrasting elements of designing and thereby reviews the needs of identifying the demands of the customers while developing a product or a service.

References

Al-Mamary, Yaser Hasan, Alina Shamsuddin, and Nor Aziati Abdul Hamid. “Factors affecting successful adoption of management information systems in organizations towards enhancing organizational performance.” American Journal of Systems and Software 2, no. 5 (2014): 121-126.

Altman, Elizabeth J., Frank Nagle, and Michael Tushman. “Innovating without information constraints: Organizations, communities, and innovation when information costs approach zero.” The Oxford Handbook of Creativity, Innovation, and Entrepreneurship. Oxford University Press, New York (2015): 353-379.

Anderson, Neil, Kristina Poto?nik, and Jing Zhou. “Innovation and creativity in organizations: A state-of-the-science review, prospective commentary, and guiding framework.” Journal of management 40, no. 5 (2014): 1297-1333.

Bin, Guo. “A reasoned action perspective of user innovation: Model and empirical test.” Industrial Marketing Management42, no. 4 (2013): 608-619.

Boer, Laurens, and Jared Donovan. “Provotypes for participatory innovation.” In Proceedings of the designing interactive systems conference, pp. 388-397. ACM, 2012.

Bogers, Marcel, and Joel West. “Managing distributed innovation: Strategic utilization of open and user innovation.” Creativity and innovation management 21, no. 1 (2012): 61-75.

Bosch?Sijtsema, Petra, and Jan Bosch. “User involvement throughout the innovation process in high?tech industries.” Journal of Product Innovation Management 32, no. 5 (2015): 793-807.

Fuller, Johann, Julia Muller, Katja Hutter, Kurt Matzler, and Julia Hautz. “Virtual worlds as collaborative innovation and knowledge platform.” In System Science (HICSS), 2012 45th Hawaii International Conference on, pp. 1003-1012. IEEE, 2012.

Hameed, Mumtaz Abdul, Steve Counsell, and Stephen Swift. “A conceptual model for the process of IT innovation adoption in organizations.” Journal of Engineering and Technology Management 29, no. 3 (2012): 358-390.

Heikkinen, Maarit, and Hannamaija Määttä. “Design driven product innovation in enhancing user experience oriented organisational culture in B-to-B organisations.” In Design Management Symposium (TIDMS), 2013 IEEE Tsinghua International, pp. 127-135. IEEE, 2013.

Hsieh, JJ Po-An, Arun Rai, Stacie Petter, and Ting Zhang. “Impact of user satisfaction with mandated CRM use on employee service quality.” MIS quarterly (2012): 1065-1080.

Kraft, Christian. “Innovating Around New Products and Users.” In User Experience Innovation, pp. 165-177. Apress, 2012.

Liedtka, Jeanne. “Perspective: Linking design thinking with innovation outcomes through cognitive bias reduction.” Journal of Product Innovation Management 32, no. 6 (2015): 925-938.

Liem, André, and Eric Brangier. “Innovation and design approaches within prospective ergonomics.” Work 41, no. Supplement 1 (2012): 5243-5250.

Norman, Donald A., and Roberto Verganti. “Incremental and radical innovation: Design research vs. technology and meaning change.” Design issues 30, no. 1 (2014): 78-96.

Nylén, Daniel, and Jonny Holmström. “Digital innovation strategy: A framework for diagnosing and improving digital product and service innovation.” Business Horizons 58, no. 1 (2015): 57-67.

Palacios-Marqués, Daniel, José M. Merigó, and Pedro Soto-Acosta. “Online social networks as an enabler of innovation in organizations.” Management Decision 53, no. 9 (2015): 1906-1920.

Seltzer, Ethan, and Dillon Mahmoudi. “Citizen participation, open innovation, and crowdsourcing: Challenges and opportunities for planning.” Journal of Planning Literature 28, no. 1 (2013): 3-18.

Teixeira, Jorge, Lia Patrício, Nuno J. Nunes, Leonel Nóbrega, Raymond P. Fisk, and Larry Constantine. “Customer experience modeling: from customer experience to service design.” Journal of Service Management 23, no. 3 (2012): 362-376.

Wooder, Stella, and Steven Baker. “Extracting key lessons in service innovation.” Journal of Product Innovation Management 29, no. 1 (2012): 13-20.

Yoo, Youngjin, Richard J. Boland Jr, Kalle Lyytinen, and Ann Majchrzak. “Organizing for innovation in the digitized world.” Organization science 23, no. 5 (2012): 1398-1408.

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