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Customer Relationship Management

Notes This is especially important in today’s market. Current economics continue to hold down already
devalued corporate stock prices. Companies are challenged to find ways to boost their value to
stakeholders – as well as to keep customers and prospects engaged and purchasing goods. Value
creation borne from innovation can be critical indeed. As evident in the Airspray example, one
item in our patent portfolio almost doubled the EBIT paid at acquisition. This example is not
unique, but was the result of painstaking and thoughtful focus on value created by innovation.
Moreover, value creation and innovation done well can immeasurable enhance the corporate
brand. Between adding new products, reviving the corporate dress, even launching new marketing
creative or advertising campaigns, customer value can be created through the value-added
components and enhanced public face of these endeavours.
Of course, it’s essential to find that delicate balance between cost, price, and return. Balance is
found, in part, by seeking stakeholder input and customer feedback during development of any
innovation process.
The arguments for innovation are, frankly, inarguable. Value, brand enhancement, share price
and perception among various stakeholders can be elevated by innovation done well. Add to
the equation the inclusion of intellectual property derived during the process, and the overall
ROI can be well worth the investment.

Value Proposition: The Key to Successful Innovation

What defines successful innovation? Innovation is the process of using intellectual capital to
create new products or services that generate positive business results in the form of financial
returns. Discovering new findings then spurs more innovation which leads to further financial
returns, and so on.

Innovation is successful when positive outcomes result in return on investment (ROI). That is
why Value Creation is so important. Adding perceived value to a new product or service will
drive ROI. The value proposition is the key to successful innovation. Develop an innovation
with high perceived value to your customer, and strong sales will follow.
It’s all about understanding your customer and giving them what they want. Customer input
and feedback is the key. Look at Ford for example. The car manufacturer observed and listened
to their large customer base on what they wanted in a car. They launched the “Your Ideas”
initiative that invited people to make suggestions for improvement in all areas of comfort,
convenience, connectivity, performance and safety. The result? Ford added iPod, MP3 player
and USB connections touch screens, and voice activated communication systems, intelligent
push-start buttons and more. Sales are soaring – not because of the traditional four wheels and
performance but because of perceived value added features. Ford Motor Company now has the
highest customer satisfaction rating among all major automakers.

When was the last time you tried or experienced your product or customer experience? Create
value and not just onerous processes. Consumer input should be considered at multiple stages
of your new product development process in order to increase perceived value. Enhanced product
value means higher margins, greater returns, improved loyalty and increased stakeholder value.
Finally, when you find that delicate balance between cost, manufacturability and consumer
perceived value, be sure to protect your intellectual property (IP) portfolio through patents.
Invest the time and money into constantly updating patents and managing your product or
service portfolio because it will lock in the value of your Innovation IP.
Sustainable Value Creation is a new mode of business that addresses fundamental societal
issues by identifying new, scalable sources of competitive advantage that generate measurable
profit and community benefit.

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