Tip 4. Look for developments in Technology

Innovation will start with someone who has thought of a idea that is then transformed into a  suitable and practical product or service to be sold to consumers. To stand out from the competitors, technology development is key to give a company an advantage with a new idea. 

The starting point for innovation will be the research of the product they want to develop and then applying this to develop the new product they will eventually make and sell. The more research the more effective and economic the product will be and will increase the likely success of it in the market that they sell to.

A company could use the linear  model of Technology-push 

This model reinforces the idea that the more research and development you do on a product the more sales of a product you will have through innovation. If you just develop a product because you want to use new technology then customers will not always know what the product is for and will not buy it. It is important to put research and marketing together with technology so customers get a product they need and feel good about buying it.

‘A technology push implies that a new invention is pushed through research and development, production and sales functions onto the market without proper consideration of whether or not it satisfies a user need’ (Martin, 1994, p43).

 

Successful companies such as BP Castrol (engine oil) division use the idea of putting new technology and customer needs together to have constant innovation focusing on technical input to make them stand out from competitors. 

"Teams of chemists at our laboratories and technology centre in Pangbourne,
UK, work continuously to identify, screen and bench-test potential base
fluids and additives, closely analysing their properties to ensure that each
provides the required performance characteristics."

This company uses constant research on the ongoing materials they use to try and develop these to test if they are up to the required performance they should. They want to meet the highest technical ability they can to keep customers happy and  may find an improved fluid that could benifit them. 

In my view it is very important to make sure that new technology is used to give customers something that they can see a use for. Customers will buy products to solve a problem that they have, they need to understand how new technology will meet their needs.

References

Innovation. (n.d.). Retrieved 1 19, 2012, from Castrol: http://www.castrol.com/castrol/sectiongenericarticle.do?categoryId=9028788&contentId=7052624

Tip. 3 Keep close to your customers and keep them happy

Supermarkets can be very successful at keeping close to their customers.

Tesco’s is a good example of this as they have their own Reward club cards which give their customers points depending on how much they spend. With these points you can then get gifts or pay with items from these points. They brought this out in 1995 and ever since has become the world’s most successful retail loyalty scheme.

“Just to give you an indication of the sheer size of the database Tesco tracks the shopping habits of up to 13 million British families and have done so for more than a decade.” 
(Fletcher, 2008)

To achieve such shockingly high figures Tesco’s must be doing something right for this many people to hand over their information to have a club card at this supermarket.

The information on these cards is useful to Tesco’s as it will show customers buying patters. This could be for a certain age groups or gender which could be useful to be able to send information to these customers with new products that are similar to products they regularly purchase.

"The success of the Clubcard - and the insight it has given Tesco into its customers' spending habits - has been widely cited as one of the major reasons for the retailer's huge success over the past decade."

(Fletcher, 2008)

Reward is a positive experience for customers too "The strategy is simple: Give high-paying customers an incentive, and they'll come back and buy more."  (Krotz) is the advice that Microsoft gives the businesses. There is no doubt that rewarding customers and building their loyalty can help make innovation successful by providing a ready market for new products and services.

References 

Fletcher, R. (2008, June 16). Tesco Clubcard founder prospers abroad. Retrieved January 19, 2012, from The Telegraph: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/2791717/Tesco-Clubcard-founder-prospers-abroad.html

Krotz, J. L. (n.d.). Reward your best customers. Retrieved January 19, 2012, from Microsoft Business: http://www.microsoft.com/business/en-us/resources/marketing/customer-service-acquisition/reward-your-best-customers.aspx?fbid=hq3p0A4VS-j