Pitney Bowes Inc: Innovation Process
Euchner’s main concern is whether Stamp Expression was the right product to promote to market. Based on analysis below, it is found that Amita project has several pitfalls which led to the slow initial sales and possible failure in growing this product. It would be better if Pitney Bowes uses acquisition to grow the small business segment.
Analysis
Innovation Process and personnel
One major issue that Pitney Bowes had is the total separation between their two essential roles, product engineering and future-scanning, in innovation process. For Amita’s innovation process, all concept development and commercial feasibility are being done in AC&T without engaging product engineering team. If product engineering team has been involved earlier, the lack of real-time support would be spot and the time spent on all feasibility activities would not be wasted. Furthermore, as many people have a say to the project, Amita has gone through much iteration which made project size growing and cost adding. Another issue was the personnel recruited to the company for leading the company growth. Neil Metviner, Dan Kohn and Lisa Somer were all hired in the sales team from credit card and consumer bank background. It is doubtful whether they had enough retail experience to define target markets and strategy to attract customers.
Customer-input innovation
AC&T’s approach to finding new growth opportunities was “customer-centered innovation”. The drawback of customer input innovation is that customer should not be trusted to come up with solutions. Rather, customer should be asked only for what they want a new product or service to do for them (Ulwick, 2002). Although AC&T has employed staff of anthropologists, designers, engineers etc to understand customers’ unspoken needs and values, the judgment on whether to include functionality, like to hook the machine directly to telephone jack or PC, was made by asking ONE single client in the focus group. Decision would far better
Analysis
Innovation Process and personnel
One major issue that Pitney Bowes had is the total separation between their two essential roles, product engineering and future-scanning, in innovation process. For Amita’s innovation process, all concept development and commercial feasibility are being done in AC&T without engaging product engineering team. If product engineering team has been involved earlier, the lack of real-time support would be spot and the time spent on all feasibility activities would not be wasted. Furthermore, as many people have a say to the project, Amita has gone through much iteration which made project size growing and cost adding. Another issue was the personnel recruited to the company for leading the company growth. Neil Metviner, Dan Kohn and Lisa Somer were all hired in the sales team from credit card and consumer bank background. It is doubtful whether they had enough retail experience to define target markets and strategy to attract customers.
Customer-input innovation
AC&T’s approach to finding new growth opportunities was “customer-centered innovation”. The drawback of customer input innovation is that customer should not be trusted to come up with solutions. Rather, customer should be asked only for what they want a new product or service to do for them (Ulwick, 2002). Although AC&T has employed staff of anthropologists, designers, engineers etc to understand customers’ unspoken needs and values, the judgment on whether to include functionality, like to hook the machine directly to telephone jack or PC, was made by asking ONE single client in the focus group. Decision would far better