Manage Customer-Centric Innovation — Systematically

This article describes a process which the authors maintain will make innovation "deliver results that meet or exceed market expectations." They stress that this process, which they call customer-centric innovation (CCI), "is not just about top-line growth; it's about sustained and profitable top-line growth, which in turn raises market capitalization." Larry Selden, of Columbia University and Wharton, and Ian MacMillan, of Wharton, explain the different phases of CCI using the example of high-end luggage marketer Tumi, which they claim has been practicing CCI since 1985. They conclude that firms can gain significant and lasting competitive advantage "by looking closely at customer profitability; segmenting customers according to their needs and desires; creating and delivering a superior customer experience; organizing around the customer; and putting customer-facing people in charge."