Consumer-Centric Innovation

May 26, 2009
TIP OF THE WEEK | Management

As consumer product companies embrace the reality of empowered consumers and the Internet-enabled world, many have been moving to an “open innovation” product development model, report Pat Conroy and Art Ash of Deloitte LLP. This model is based on the idea that information can now be gathered on a mass scale by using both external (end users, suppliers, academia, etc.) and internal (employees) sources as inputs into the new product development process. The concept has taken hold because companies are realizing the benefit of having access to a global network of qualified, available citizens who are willing to provide input on problem solving or suggesting new solutions to old ways of doing business. Open innovation is creating new ways to organize and think about R&D within companies.

In a new report, “Consumer-Centric Innovation: Tapping Into Consumer Insights to Drive Growth,” Conroy and Ash discuss six key action steps that companies should consider to help make their innovation efforts more consumer centric. These components provide companies with a new way of thinking about innovation that often can yield favorable long-term results. In a time when consumers are increasingly bypassing companies and creating their own products or solutions and sharing them with others, the power and potential of consumer-centric innovation is too important to ignore.

The report is available for download from the Deloitte Web site.