{"id":7385,"date":"2010-10-01T01:27:00","date_gmt":"2010-09-30T19:57:00","guid":{"rendered":"http:\/\/lex-warrier.in\/?p=445"},"modified":"2010-10-01T01:27:00","modified_gmt":"2010-09-30T19:57:00","slug":"innovation-of-a-business-enterprise","status":"publish","type":"post","link":"https:\/\/lex-warrier.in\/archives\/innovation-of-a-business-enterprise.html","title":{"rendered":"Innovation of a Business Enterprise"},"content":{"rendered":"
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Author : Aditya Patnaik<\/strong><\/p>\n

WHAT IS INNOVATION?<\/strong><\/h2>\n[Creation + Development + Implementation] new product or service = efficiency, effectiveness and competitive advantage.
\nInnovation is the outcome of new creative ideas related to products, services, process and transforming them into reality through application of research and technology for the benefit of the customer and the market. Innovation is critical for economic strength and growth. The ability to compete in the global market depends on valuing innovation, harnessing its potential and putting it into practice for the benefit of a business or company. It has been rightly said \u2018Innovation policy is industry policy.\u2019<\/p>\n

Innovation is an integral part of any business which needs to be exercised on a daily basis and not a unique process or proposition. Successful Innovation is critical to the overall growth of any venture.\u00a0The creation of considerable new value for customers and the Organization by creatively changing one or more dimensions of the business system is Innovation. We can define business innovation as the creation of substantial new value for customers and the firm by creatively changing one or more dimensions of the business system.\u00a0<\/p>\n

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12 Dimensions of Business Innovation\u00a0<\/strong><\/div>\n
The Innovation Radar<\/strong><\/div>\n
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How effective is Innovation to a business enterprise?<\/strong><\/div>\n

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As per the study, 75 per cent of CEOs of the fastest growing companies claim their strongest competitive advantage is unique products and services and the distinct business processes that power them to market \u2013 innovation by another name. In another survey, Boston Consulting Group reported that 90 per cent of organisations believe innovation is a strategic priority for 2004 and beyond.<\/div>\n
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Ten Types of Innovation<\/strong><\/div>\n<\/div>\n
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\u00a0\u00a0 \u00a0 \u00a0Dell \u00a0 \u00a0 Sara Lee \u00a0Starbucks \u00a0 \u00a0 \u00a0Wal-Mart \u00a0 Oxo peeler \u00a0 Microsoft \u00a0 \u00a0 \u00a0Airlines \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Virgin \u00a0 \u00a0Harley Davidson<\/div>\n
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This framework helps to find out new opportunities in finance, process, offering and delivery. Companies that are able to tap multiple innovation types will get higher returns and have strategies that are difficult to be copied anywhere else in the market.<\/div>\n
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ONLINE COMMUNICATION & SOCIAL MEDIA<\/strong><\/div>\n
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Social media is nothing but a Conversation using online tools. This can be broadly explained as a paradigm given to the social practices and interactions of users supported by technological development online, and not refer to a tech-oriented terminology. \u00a0Social media is at the top of every agenda. Creating relations is necessary, but how do we turn that into turnover, revenue and cash?<\/div>\n
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Why a Blog?<\/strong><\/div>\n
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\u2022Better search results on Google.<\/div>\n
\u2022Platform for exhibiting your skills, services and products.<\/div>\n
\u2022Introduce the site visitors about you and what you do by being open.<\/div>\n
\u2022A healthy interaction with customers and visitors.<\/div>\n
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Why a Community (Facebook)<\/strong><\/div>\n
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\u2022An informal showcase and chat about one\u2019s product and services.<\/div>\n
\u2022Know-how on your customers\u2019 concerns.<\/div>\n
\u2022Sound sharing of suggestions and help related to one\u2019s business<\/div>\n
\u2022Guide visitors to the Company\u2019s homepage for direct action on calls.<\/div>\n
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Why a globally read Community (Twitter)<\/strong><\/div>\n
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\u2022An informal and direct interaction with the customers.<\/div>\n
\u2022Be up-to-date with what is in news about you and your competitor.<\/div>\n
\u2022Catch hold of recent news updates related to one\u2019s industry at large.<\/div>\n
\u2022Contribute by sharing helpful information.<\/div>\n
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The up growth of social media and networking has evolved not just the way we interact online and connect to people, but also helped establish ways of how we market ourselves, products and services.<\/div>\n
Quantifying your Brands popularity in terms of Social as well as Revenue generation due to Online communication and social medias is an understandable concern. After the growth in social media prolonging a decade, it has now reached a stage of \u2018measuring its accountability\u2019, irrespective of the fact that there is no single direct answer. The metrics fall broadly into three categories : Brand\u2019s social media exposure, It\u2019s influence and Engagements it has been able to attract.<\/div>\n
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Exposure is the top of the brand awareness funnel and represents your potential sales lead pool. Other than the various business strategies and mind-boggling ideas, for a successful business setup one also have to be useful, very up-to-date and bang on-topic. Due to lack of focus on the customers interest to promoting the interest for your company, some corporate also face over-selling and over-promotion. \u00a0Another way can be by speaking or informing about the topic of your arena i.e. make cases available from your industry at large than just being company-centric.<\/div>\n
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Some Case examples that show the benefits generated from Online commuinication and social media:<\/div>\n
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Pepsi came up with a campaign called \u2018Refresh Everything\u2019 on communities, involving its fans by asking them for ideas to refresh the world. By doing so, it stated that your relationship with the audience at large holds your position intact in the market.<\/div>\n
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Coke being the second most popular page on Facebook was earlier started by Dusty and Michael who managed to gather some 5 million fans. Instead of forbidding their control, Coke decided to join hands with them and thereon build on the existing customers and visitors.<\/div>\n
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SEGMENTATION<\/strong><\/div>\n

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Segmentation aims at measuring the consumer behavior and fixing each person in a frame or segment based on certain similarities between them which are held on any dimensions that will minimize the behavior between each segment, hence maximizing the variance between segments.<\/div>\n
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Why Segmentation?\u00a0<\/strong><\/div>\n

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\u2022For attaining higher profitability and market share, along with customer satisfaction companies need to implement needs-centric marketing approach and formulate initiatives, product offerings and services revolving around customer needs.<\/div>\n
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\u2022Introducing new products or services<\/div>\n
\u2022Segregating marketing communications<\/div>\n
\u2022Involving varied customer services and strategies for the same.<\/div>\n
\u2022Catch hold of best profit potential prospects.<\/div>\n
\u2022Incorporating multiple strategies for distribution and consumption.<\/div>\n
\u2022Differences in consumers\u2019 needs, driving force, buying behavior.<\/div>\n
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It is very necessary to establish a base for Segmentation. For this one needs to find appropriate variables in order to split the market into actionable segments considering the various fields and characteristics. Hence, it is a complex and tricky process which requires a good expertise and is only gained by experience. However, segmentation when done in the right manner can lead to great returns.<\/div>\n
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How are Consumer markets segmented?<\/strong><\/div>\n

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It is a play of permutation and combinations wherein there lies no single way to segment a market. The major variables around which Segmentation is outlined are geographic, demographic, psychographic and behavioural segments.<\/div>\n
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Geographic segmentation:<\/strong>\u00a0\u00a0Segregating the market into different geographical units. A company using this segmentation will pay attention to the needs and requirements set due to geographical differences between areas where they operate.<\/div>\n
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Demographic segmentation:\u00a0<\/strong>Uses the variables like age, gender, family size and family life-cycle, income, occupation, religion and nationality for dividing the market into groups for segmenting the customers. This is the most popular bases of segmentation in markets because they are easier to measure than other bases.<\/div>\n
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Psycho-graphic\u00a0segmentation:<\/strong> Plays on the basis of buyers\u2019 social class, lifestyle or personality characteristics. For example, the American Express \u2018My life. My card\u2019 campaign takes in glimpses of the lifestyles of famous people with whom the customer tends to identify.<\/div>\n
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Behavioural segmentation:<\/strong> Knowledge, attitude, responses towards a product form the basis of this kind of segmentation. It is believed that this kind of segmentation forms the starting point for building market segments and relating to the customers in a huge way.<\/div>\n
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Methodology for Customer Segmentation followed by managers is:<\/div>\n
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FACTORS FOR EFFECTIVE SEGMENTATION<\/strong><\/div>\n
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For successful tapping of the market opportunities, market segments must be:<\/div>\n
\u2022The size, purchasing power and profiles of segments must be Measurable.<\/div>\n
\u2022Efficient and successful Accessibility and service of market segment must be attained.<\/div>\n
\u2022The segment should be able to serve in Substantial and profitable manner i.e. it should be the largest single segment significant enough to pursue in a sound market programme.<\/div>\n
\u2022The concept of each segment is Differentiable so as to respond to varies marketing elements.<\/div>\n
\u2022Programmes should be such that they can effectively attract and serve the segments, thus being Actionable.<\/div>\n<\/div>\n<\/div>\n
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Author : Aditya Patnaik WHAT IS INNOVATION? [Creation + Development + Implementation] new product or service = efficiency, effectiveness and competitive advantage. Innovation is the outcome of new creative ideas…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[32],"tags":[1606],"class_list":["post-7385","post","type-post","status-publish","format-standard","hentry","category-featured","tag-innovation-of-a-business-enterprise","no-post-thumbnail","clearfix","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nInnovation of a Business Enterprise | The Lex-Warrier: Online Law Journal<\/title>\n<meta name=\"description\" content=\"Innovation of business enterprise? 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