Gurumurthy Kalyanaram NYIT, former professor and Dean, reports on reports on value of customer care and experience on innovation.
Over last two decades, the customer care and customer experience value creation have gradually become a strategic asset regardless of any type of business or market place. Today’s one of major executives’ duties is to develop operating models for deploying customer experience as a true differentiators. This is consistent with both recent and long-standing research findings.
Over last two decades, the customer care and customer experience value creation have gradually become a strategic asset regardless of any type of business or market place. Today’s one of major executives’ duties is to develop operating models for deploying customer experience as a true differentiators. This is consistent with both recent and long-standing research findings.
Treacy and Wiersema (1997) identify customer experience as one of the distinct modes to achieve market leadership in their discussion of the modes to market leadership. Gurumurthy Kalyanaram and Krishnan (1997) model and show the importance of customer interface and experience in successful product definition and customization. Sawhney (2006) describes twelve different ways for companies to innovate, and one of the celebrated dimensions for innovation to be customer experience. It considers everything a customer see, hears, feels and otherwise experiences while interacting with a firm at all moments. In recent study of Rawson et al. (2013), they emphasize the need to embed customer experience into a firm's operating models and to build cross-functional processes to redesign and support total customer experience. Customer care and experience are often considered as main determinants of overall customer satisfaction and collateral innovation (Rust, Zahorik, &Keiningham, 1995; Dobni, 2002; Donavan et al., 2004)
A total and integrated customer care and experience has been a true corner stone for several corporate turnaround stories. A classic example is IBM’s Global Services. IBM’s Global Services team delivers its superior service by being the customers’ trusted advisors and offers a constant solution which is the integrative of hardware, software and business insights. IBM acquired the consulting arm of PricewaterhouseCoopers (PwC) in 2002 and with the insights of 3,000 PwC researchers, and became better able to predict future developments in technology and how those developments will affect client organizations (Vandermerwe, 2004). Today’s IBM Global Services Unit accounts for over 50% of total revenue. Kodak Co., in another interesting example, made its strategic shift from ordinary digital cameras business to offer services around digital photography in order to grasp the new opportunities in the market place (Financial Times, 11/29/2006.) Kodak has found ways to add significantly to its interaction with customers in the advent of digital technology. With the acquisition of Ofoto Inc., an online printing service which make it easy for customers to create online albums, to order photo prints, greeting cards and frames; and with the installation of 30,000 kiosks in retail locations; its digital camera business turned profitable two years after launch. Kodak’s deeper presence within customer’s activity chain played a big role in its success (Sawhey et al., 2004.) Customer care and attention have also paid successful early entry and market share dividends to firms (Kalyanaram and Raguvir 1998, Kalyanaram, Robinson and Urban 1995).
Please refer to other articles by Gurumurthy Kalyanaram NYIT, former professor and Dean on his website: www.gurumurthykalyanaram.com/nyit.html
A total and integrated customer care and experience has been a true corner stone for several corporate turnaround stories. A classic example is IBM’s Global Services. IBM’s Global Services team delivers its superior service by being the customers’ trusted advisors and offers a constant solution which is the integrative of hardware, software and business insights. IBM acquired the consulting arm of PricewaterhouseCoopers (PwC) in 2002 and with the insights of 3,000 PwC researchers, and became better able to predict future developments in technology and how those developments will affect client organizations (Vandermerwe, 2004). Today’s IBM Global Services Unit accounts for over 50% of total revenue. Kodak Co., in another interesting example, made its strategic shift from ordinary digital cameras business to offer services around digital photography in order to grasp the new opportunities in the market place (Financial Times, 11/29/2006.) Kodak has found ways to add significantly to its interaction with customers in the advent of digital technology. With the acquisition of Ofoto Inc., an online printing service which make it easy for customers to create online albums, to order photo prints, greeting cards and frames; and with the installation of 30,000 kiosks in retail locations; its digital camera business turned profitable two years after launch. Kodak’s deeper presence within customer’s activity chain played a big role in its success (Sawhey et al., 2004.) Customer care and attention have also paid successful early entry and market share dividends to firms (Kalyanaram and Raguvir 1998, Kalyanaram, Robinson and Urban 1995).
Please refer to other articles by Gurumurthy Kalyanaram NYIT, former professor and Dean on his website: www.gurumurthykalyanaram.com/nyit.html