Sunday, November 27, 2011

Innovation Makes Things Cheaper

Another great post from Innovation Excellence via Jorge Barba. Here's an excerpt....

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Believe it or not I’ve heard business owners tell me that if they’re innovating, they want to charge a high price. First of all, a truly innovative ideas makes it’s benefits accessible to as many people as possible. This means the cost of entry for the customer is lower, not higher.
Again, a lot of focus is placed on product innovation. Technology alone isn’t necessarily going to take your company up-up and away. What you can charge a premium for is a great customer experience.

There is also this belief that because you added more features to your offering, then it makes it the best. Therefore the consumer should pay more for these features. Not so. If anything, having the most important features that the customer really values is what really matters.
Click here to read the whole post.

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QMI Solutions has realised the power of helping companies implement innovative solutions that meet the needs of price-sensitive and has developed a product sourced on a successful version that has comes from Germany's Fraunhofer IAO. It is called Cost-Focused Innovation.

Fraunhofer IAO’s approach to CFI is centred on identifying new price sensitive customer groups and then designing products that meet the absolute needs of that group. A great example is that of IKEA’s innovative approach to affordable living for young families. Formule 1, Accor’s budget hotel brand, is another CFI example targeted at a specific customer group - travelling sales representatives.

Click here to read more about Cost-Focused Innovation.

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