Innovation is the key to make today’s business stay relevant for tomorrow. We are working in an era where innovation cycles are measured in days and weeks rather than months or years. As customer expectations grow and budgets tighten, digital technologies like augmented reality, artificial intelligence, data analytics and mining are transforming the world. The most common examples of positive impacts that digital technology has made on the business models across the globe are Amazon, Uber, Mobile banking apps, Zomato etc.
The rate at which the innovations are taking place in the digital service world is tremendous. Innovation management has always been vital but can organizations or startups really manage digital innovation?
The digital technology generates highly complex innovation challenges. In the past, we have had examples of firms that failed to address them appropriately and suffered major consequences. For example, according to IDC, Blackberry ignored the touch-screen based technology and its share in the smartphone market have been constantly dropping, from 20.1% share in 2009 to 0.8% in 2014 which has reduced to almost 0% in today’s date.
New technologies can challenge existing markets but the competencies of the existing market can get in the way, hence the digital innovation management suffers from some limitations-
- Firms that seek to innovate their product and service offerings with digital technology need managers well-versed in the specific nature of digital technology.
- Research on technological innovation is a macro-level activity, which results in high-level descriptions of strategic recommendations. In such cases, attention needs to be given to the key areas such as:
- Measurement of user experience on the basis of usability, aesthetics, and engagement to conclude whether it is a rich user experience.
- Remaining updated with regards to new technologies and facilities, gathering intelligence on new devices, mobile operating systems, and social media. In any case, avoid obsolete technologies as they would burn a hole in your pocket.
- Simplification of mechanisms because in general, the general public is attracted to what is easily available and simple to handle.
- A continuous learning of the unique properties of digital technologies is necessary to develop mechanisms that support the promotion of new skills.
- Creating value for the users by identifying user values and what they really appreciate more in a changing development environment. The quality of such value is assessed on the dynamics of customer and product and service bundling.
- Improvising – being satisfied with your current mechanisms is good, but keep creating something spontaneously according to the ever-changing needs of the consumer.
When seeking a way to create digital products and services that are engaging, firms need to explore and tap into values that can make the experience of their digital products and services meaningful and valuable to end-users.
Use our limited free service to get a better understanding of creating an integrated user experience that significantly improves engagement and brand value.