Innovation Dilemmas © Shutterstock.com The toughest part of innovation is determining consumer preference for <strong>the</strong> value created by <strong>the</strong> innovation. ABOUT THE AUTHOR Dr N G Kannan is a retired Director (Marketing) of Indian Oil Corporation Limited and MD of IBP Limited. He also retired as Chairman of Lubrizol India Limited, Indian Oil Mauritius Limited, and Indian Oil Petronas Limited. mutual perspectives better. 4. Is <strong>the</strong> conversation exploratory? This suggests that no topic is off-limits between <strong>the</strong> firm and <strong>the</strong> customer. The depth and breadth of <strong>the</strong> ideas increase, and enables identifying <strong>the</strong> best course of action for both. 5. Is <strong>the</strong>re an eagerness for <strong>new</strong> ideas? The most productive dialogues are those that exhibit extreme openness to <strong>new</strong> ideas, regardless of <strong>the</strong> firm’s capabilities, competition, and o<strong>the</strong>r factors. 6. Do <strong>the</strong> customer and firm shape <strong>the</strong> structure and content of <strong>the</strong> conversation? Both parties should have process checks in place to ensure that <strong>the</strong> dialogue is not a one-way conversation, but a two-way flow of information. Co-creating with customers involves high levels of trust between both parties, a willingness to place value on each o<strong>the</strong>r’s insights, complementarity of skills between <strong>the</strong> firm and <strong>the</strong> customer, depth of knowledge and experience, an adventureseeking attitude to enjoy <strong>the</strong> t<strong>hr</strong>ill that comes from exploring <strong>the</strong>se ideas, and creating a setting where both parties can have uninterrupted conversations 7 . Although firms benefit from co-creation, <strong>the</strong>y have to figure out when it is optimal to co-create with customers versus when to just listen to <strong>the</strong>ir voice. For example, if it is an incremental tweak to an existing product, <strong>the</strong>n firms might not have to engage in extensive co-creation. Thus, managers have to determine <strong>the</strong> products that <strong>the</strong>y are interested in innovating, before determining <strong>the</strong> best way to incorporate <strong>the</strong> voice of <strong>the</strong> customer. In sum, <strong>the</strong> toughest part of innovation is determining consumer preference for <strong>the</strong> value created by <strong>the</strong> innovation. Co-creation enables firms to determine this value and <strong>the</strong>n provide <strong>the</strong>m to customers. However, co-creation is not a one-time solution. It is a philosophy, a mindset that organisations have to consciously work on in order to effectively leverage <strong>the</strong> voice of <strong>the</strong> customer for designing successful innovations. 1 Prahalad, C.K & Ramaswamy, V. (2000). Co-opting customer competence 2 Goffin, K., Varnes, C. J., van der Hoven, C., & Koners, U. (2012). Beyond <strong>the</strong> voice of <strong>the</strong> customer: Ethnographic market research. Research-Technology Management, 55(4), 45-54. 3 Bettencourt, L. A., & Ulwick, A. W. (2008). The customercentered innovation map. Harvard Business Review, 86(5), 109. 4 Richardson, A. (2010). Using customer journey maps to improve customer experience. HBR Blog Network, posted, 8(05). 5 C<strong>hr</strong>istensen, C.M., Anthony, S.D., Berstell, G., Nitterhouse, D. (2007). Finding <strong>the</strong> right job for your product, MIT Sloan Management Review, 48, 38-47. 6, 7 Jaworski, Bernard J. and Ajay K. Kohli (2006), “Co-Creating <strong>the</strong> Voice of <strong>the</strong> Customer,” in Robert F. Lusch and Stephen L. Vargo (eds), Toward a Service-Dominant Logic of Marketing: Dialog, Debate and Directions, M.E. Sharpe, Inc. Armonk: NY. (We shall cover more on innovation-related issues in our forthcoming issues. If you have a question on innovation, send it to us along with your title and company name to imeditorial@ spentamultimedia.com. We will also credit you for <strong>the</strong> questions when we respond to it in our article.) 74 INDIAN MANAGEMENT NOVEMBER 2015
Why shifting to cloud telephony will help businesses streamline and coalesce <strong>the</strong>ir communication processes. Ambarish Gupta, Knowlarity Communications STARTUP The virtual caller He graduated from IIT Kanpur, worked for t<strong>hr</strong>ee years in Silicon Valley, and came back to India where he started an online real estate brokerage company, Inventica. Unfortunately, it did not take off as it was not an ideal time for online businesses and no venture capitalist was ready to invest. But failure did not deter him from pursuing his entrepreneurial dreams. After a few years, he started his own cloud telephony-based startup—Knowlarity, which is now <strong>the</strong> market leader in <strong>the</strong> country. In this exclusive interview to Indian Management, Ambarish Gupta highlights how cloud telephony will pave <strong>the</strong> path for more efficient, affordable, and easy management of business communications. I NDIAN MANAGEMENT NOVEMBER 2015 75
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