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A Proposal for a Standard With Innovation Management System

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Prosumer Involvement in <strong>Innovation</strong> Strategies – the<br />

Prosumer Creativity and Focus Paradigm<br />

Monica Izvercianu and Sabina Şeran<br />

Politehnica University of Timisoara, Romania<br />

monica.izvercianu @ mpt.upt.ro<br />

seran.sabina@yahoo.com<br />

Abstract: <strong>Innovation</strong> has become a key success factor <strong>for</strong> sustainable companies that face diversity of thought,<br />

globalization of communication means and the rise of a new type of consumer: the prosumer. This concept refers<br />

to a technology savvy, that shares goods and services, wants to make his voice heard by developing ideas,<br />

products or services in partnership with companies, to become valuable through his creative offer. <strong>With</strong> the<br />

technology boom and the invention of the Web, prosumers, limited by physical boundaries went online, where<br />

they found unlimited sources <strong>for</strong> their rip, mix and burn nature. The old consumption model is dead; long live the<br />

new consumption model! The old consumption model was based on mass consumption, mass communication, a<br />

centralized economy, standardization and specialization of work places. The usual consumer was unin<strong>for</strong>med,<br />

could be easily influenced by marketing campaigns and generally bought a wide range of products. But with the<br />

rapid development of technology, a large number of consumers became knowledgeable, having global access to<br />

technology, communication and in<strong>for</strong>mation. Precisely these changes offer a wide range of competitive<br />

advantages <strong>for</strong> open minded organizations. There<strong>for</strong>e a threat is trans<strong>for</strong>med into an opportunity, by innovating<br />

alongside their consumers. The degree of prosumer involvement into the innovation process takes time and<br />

ef<strong>for</strong>t, and depends on a company’s characteristics and objectives. The present article takes into account the<br />

level of prosumer involvement and creativity output, and presents the four main strategies that have emerged:<br />

Company + Company customization, Company + Prosumer crowd sourcing, Prosumer + Company working<br />

together and Prosumer + Prosumer co-creation. These four strategies are the starting point <strong>for</strong> important decision<br />

making and complex marketing campaigns creation. The Prosumer Creativity and Focus paradigm is suited <strong>for</strong> a<br />

company’s introspection, <strong>for</strong> defining its position and customer focus, leading to an open innovation and a radical<br />

change of mentality.<br />

Keywords: prosumer, co-creation, crowd sourcing, open innovation, prosumer creativity and focus paradigm,<br />

virtual knowledge broker<br />

1. Introduction<br />

Companies from all over the world face profound changes in technology, demographical, economical<br />

and cultural trans<strong>for</strong>mations, which are establishing market success according to innovative activities<br />

undertaken. Schumpeter (2003) talks about innovation like an activity designed to “produce<br />

something else or to produce otherwise”. There<strong>for</strong>e, we can argue that an innovative activity must<br />

target new products or services or new manufacturing technologies, which will offer new features <strong>for</strong><br />

common products. But innovation isn’t limited to these two possibilities. Extrapolating, and thinking<br />

the matter in a systemic manner, it implies courage to enter new markets, which are shown to be<br />

profitable, to bring new and revolutionary raw materials in the manufacturing process, to reorganize<br />

the internal structure and culture of a firm based on an innovative method or to build a firm’s image<br />

after a fresh marketing trend, corresponding perfectly to the target audience’s needs.<br />

In the years 2007-2008, the economic crisis that put an end to the old consumption model, in a world<br />

stroke by poverty and unemployment, brought to life an era ruled by value added actions and<br />

prosumption. There<strong>for</strong>e, the old consumption model which had known a rapid growth from the<br />

massive industrialization era, with principles like mass communication, product standardization,<br />

maximization of profits, specialization of the work place, centralization of economy and policy, began<br />

to loose ground, because of its bureaucratic and slow reaction to change.<br />

Jean Baudrillard’s (1970) consumption society collapsed because of the global recession. The<br />

consumption has dramatically decreased causing companies to adopt new market strategies or to<br />

declare bankruptcy. But what kind of strategies to adopt, if till then Kotler’s (2009) consumer centred<br />

marketing determined managers to treat consumers like kings, to analyze their needs and wants and<br />

to quickly meet them? What else could they do? It was a firm-client relationship issue. Managers<br />

didn’t perceive the client as an individual, with a distinctive personality and creative potential, but as<br />

an amorphous mass of people, corresponding to certain indicators, which needed to be manipulated<br />

through mass communication. But yesterday’s unin<strong>for</strong>med consumer, who was purchasing a wide<br />

range of products being influenced by advertising, has rapidly trans<strong>for</strong>med in an in<strong>for</strong>med consumer,<br />

demanding in its choices, who could not be manipulated by mass media’s boastful ads. Companies<br />

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