CUSTOMER KNOWLEDGE MANAGEMENT IN NEW PRODUCT DEVELOPMENT (original) (raw)
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New Product Development Based on Customer Knowledge Management
Human beings have always been tried to make new, innovative things to benefit from. The new things have been improved from a wheel to a smart car and the benefits have been improved from survival to survival plus fitness, happiness, sense of belonging, security and etc. Companies which have been following the human nature, and thinking of new, innovative products and consumers' benefits cohesively, could gain competitive advantages. But the process of new product development has always been costly and due to the high failure rate it is risky. Academics and practitioners alike agree that one of the new product development failure reasons is consumers' nonacceptance. So they try to enhance the new product development (NPD) process to reduce the consumers' nonacceptance. One of the most famous tools used is Knowledge Management (KM). KM focuses on employees' knowledge but has little systematic attention to the customers. In order to overcome the KM limitation, the concept of Customer Knowledge Management (CKM) introduced. CKM by combining KM and customer relationship management (CRM), more clearly extract knowledge 'for' customers, knowledge 'about' customers, and knowledge 'from' customers, so that a more beneficial product can be delivered to the right group of customers, to prevent product failure and to ensure commercial success. In this research, review on NPD, KM and CKM are provided and new product development based on customer knowledge management has been implemented. To develop new products based on customer knowledge management framework, the customers' knowledge should be elicited and converted to a pattern of consumers' need towards the products attributes. The need patterns and consumers' characteristics have to be segmented to be more meaningful for marketers to target and communicate. This reduces the customer fuzziness dimension in the NPD process and elevates the likelihood of success. For eliciting customer knowledge, Means-end chain theory has been adapted, and with data mining clustering algorithms, the consumers' segments has been derived based on their means-end chains toward the product (Malt Beverage or None Alcoholic Beer-N.A.B). Data collection is done with a survey of 660 university people. The questionnaire consists of two sections: 1-measuring means-end chains with Association Pattern Technique (APT), 2-questions about buying behavior and demographic characteristics to better profile the segments. Data analysis of means-end chains with clustering algorithms, results in three segments of consumers, three groups of preferred product attributes and A the proper communication message for each segment. Data analysis of second part of the questionnaire, help to profile and describe the segments found. The main objectives of this research include finding and implementing systematic approaches to extract customer knowledge, and finding frameworks for more involvement of customer and using customer knowledge in the idea generation phase of NPD process. The outcome of this research is a practical framework for "idea generation phase of new product development process based on customer knowledge". In continue, the mentioned framework implemented in a part of Iran N.A.B market and result in segmenting and profiling this market. Also, the critical new product attributes and bases of communication message and promotion campaigns extracted. We have also contribution, in implementing text mining techniques for clustering algorithms. The framework proposed in this dissertation, can be used in any consumer industry in Iran. Having a framework for precisely delineating the process of customer knowledge management for new product development can lead Iranian companies and consumers to more satisfaction.
CKM: Where knowledge and customer meet
Citation: Akhavan, Peyman and Safanaz Heidari (2008), CKM: Where knowledge and customer meet, KM Review, Vol. 11, No.3, The value of knowledge management and customer relationship management is well recognized by many leading companies. Both approaches focus on allocating resources to supportive business activities in order to gain competitive advantages. The improvement of customer relationships through KM can generate great business opportunities. Given the important role being played by KM systems in the current customer-centric environment, there is a need for a simple and integrated framework for the management of customer knowledge. Surprisingly, there is a lack of a simple and comprehensive framework to integrate the traditional CRM (Customer Relationship Management) functionalities with the management and applications while KM systems manage an organization's knowledge through the process of creating, structuring, disseminating and applying knowledge to enhance organizational performance and create value traditional CRM have focused on the transactional exchange to manage customer interactions. In business practice, managing customer knowledge has been the most important aspect of KM in many organizations, and KM capabilities have been found to be crucial factors in successful CRM-implementation. CRM and KM initiatives are directed towards the same goal: the delivery of continuous improvement towards customers. Initiatives stemming from this effort have been labeled 'Customer knowledge management' (CKM) or 'knowledge-enabled CRM'. In this paper, our purpose is to provide an understanding of CKM as an integrated management approach. This research focuses on how concepts of KM can be applied within the area of CRM and enables companies to improve knowledge support of their customeroriented business processes, which in turn aims at improving the overall performance of the enterprise.
CUSTOMER KNOWLEDGE MANAGEMENT: DEVELOPMENT STAGES AND CHALLENGES
Customer knowledge management (CKM) is necessary for firms in order to benefit from customer engagement which is referred as active involvement in innovative product or service development. Providing customized product and enhancing quality of service and product without successful CKM is not possible. However, organizations face major challenges concerning CKM. In this study, organizational, human and technological challenges of CKM were investigated. Then, the CKM development phases in the organizations are discussed. Finally, the organizational, human and technological challenges of each phase and the main CKM process of each phase are identified. Scholars and practitioners can use this research to estimate the current CKM phase of each organization and the challenges that the firms might face during the current and upcoming phases.
SSRN Electronic Journal
Effective decision-making in new product development (NPD) is vital for the success of product and project management teams in the competitive market. The alignment between science and business becomes crucial in NPD, where managers require specific resources, such as customer knowledge and technology, to ensure favorable outcomes. The decision-making process is critical, as it determines which product projects are approved and how resources are allocated for NPD. This research focuses on investigating the performance effects of Customer Relationship Management (CRM) and Product Development Management (PDM) and how organizations employ various techniques to build successful new products. Additionally, it explores the significance of Product Portfolio Management Objectives (PPMO) in enhancing NPD processes. Studies indicate that techniques aimed at reducing marketable time and incorporating new technologies have a positive impact on product introduction, leading to market leadership and the establishment of dominant industry standards. To achieve success in NPD, a harmonious relationship between CRM and PDM is essential, with PDM emphasizing technological advancements. Research shows that innovative product development, not solely driven by technological or market advantages, can yield significant benefits for companies. Implementing multi-segmented groups, stage gates, and concurrent engineering practices can streamline NPD by promoting cross-departmental collaboration, quicker decision-making, and efficient resource allocation. However, an excessive focus on 2 CRM or PDM alone may limit financial success, especially when market newness is the primary focus. Due to limited resources, organizations often prioritize one of these management approaches to gain a competitive edge in NPD. Furthermore, emerging economies present both challenges and opportunities for global companies seeking to enter these markets. This study aims to bridge the knowledge gap by examining the relationship between Critical Chain Project Management practices, Product Portfolio Management performance, and NPD program outcomes. The research also explores whether the adoption of Critical Chain Project Management contributes to successful portfolio management or if performance is a result of effective resource allocation. The study includes a survey of companies operating in Brazil, considering both domestic and international firms actively involved in new product development. The research provides insights into consumer relationships, growth expansion, and strategic considerations within emerging economies. It further develops a theoretical framework and methodology for examining the proposed relationships, presents the findings of the empirical analysis, and concludes with discussions on the implications, limitations, and avenues for future research.
The Role of Customer Knowledge Management (CKM) in Improving Organization-Customer Relationship
2013
The customer's value has become apparent for the leading companies in today's competitive environment. Therefore they are constantly trying to improve their relationship with customers via their customer relationship management systems. Knowledge management (KM) can also help to improve the quality of the information obtained by customer relationship management (CRM). However, in order to be more effective, KM should be provided with a steady and ongoing process of gathering information from outer sources in cooperation with the CRM system. In this study, a customer knowledge management (CKM) model has been proposed for the integration of CRM and KM in four stages. In addition, a survey has been conducted to identify the barriers of the design and implementation of CKM. Research sample included Managers of 22 manufacturers in Isfahan and the questionnaire consists of 29 multiple-choice questions. Findings imply that inadequate supporting budgets, lack of senior management commitment to CKM and poor communication are the barriers to the design and implementation of CKM.
Customer Knowledge Management (CKM): Perspectives & Practices
2014
While Customer Relationship Management (CRM) refers to building strategies and tools for managing relationships with customers, Customer Knowledge Management (CKM) refers to strategies that help companies derive valuable insights about customers that get stored in the form of customer data / information to be shared across the value chain, which when preserved would become a knowledge repository for the future generation of managers. CKM is an art of managing business and attempts to integrate implicit and explicit knowledge and aligns it with CRM goals for realizing long term business objectives of sustained efficiency and competitive advantage. CKM aims at preserving customer knowledge for truly understanding how customers behave based on the changes in the environment from the insights obtained about the customers over a period of time. Thus the dynamics of CKM emerge from the fact that it records changes in the customer behavior across the customer lifecycle and also provides fo...
An Empirical Investigation of the Customer Knowledge Creation Impact on NPD Performance
2007 40th Annual Hawaii International Conference on System Sciences (HICSS'07), 2007
New product development (NPD) projects require efficient strategies for reducing time to market and responding faster and better to the customer needs. While these strategies were mostly technology driven at the early stages, nowadays firms are adopting knowledge management systems (KMS) to enhance new customer knowledge creation and NPD performance. Despite their potential benefits, there is a variance in the extent of efforts that firms deploy for achieving NPD performance. This is because not all the firms can meet the KMS requirements to support the customer knowledge creation process. In this study, the authors develop a research model that identifies (1) the impact of KMS factors on customer knowledge creation process and NPD performance, (2) the elements that interconnects KMS factors, customer knowledge creation process, and NPD performance (3) the outcomes that are generated by this approach.
Knowledge Management on the implementation of a CRM Project: A Case Study
Revista de Administração da UFSM, 2013
Companies face high market demand and to remain competitive they need to invest in the relationship with their customers. Customer Relationship Management (CRM) implies not only a new use of a tool but also a changing of its strategical approach to the market. As seen in previous studies, CRM projects are very likely to fail, however, actions can be taken to help overcome these problems, such as proper knowledge management integration. With this study we are able to answer the following research question: how the company can use knowledge management in a CRM project adoption? In order to answer this question, after a literature review, a case study was conducted. Data collection was carried out through direct observation in the company, with the analysis of documents, and interviews. We can observe that there are a set of knowledge management activities that can help the adoption of CRM projects, even if there is no formal policy for knowledge management in the group or for this specific project. Knowledge sharing is seen as an enabler of better results for CRM projects.