No, these are not same. I feel there is difference between two topics. The customer driven innovation can be explained by the theory of co-creation ( ref: C K Prahalad and Venkat Ramaswamy , Harvard Business Review , January-February 2000, " Co-opting customer competence" ) , where the organization and the customer are jointly engaged in mutual value creation through product innovation. On the other hand, the customer centred innovation, justifies Michael Porter's theory of competition, where the competitive advantage may be created through creation of unique innovative product for customer satisfaction ( ref:Michael Porter's" Differentiation competition" ).
sir ,thank you so much , sir have can you suggest me good articles/researchers about my topic or can you send me few articles on " Customer Driven Innovation"
I think one of the (few) best contributions is the following article http://faculty.mu.edu.sa/public/uploads/1357394142.956332024697.pdf
This is the difference between a Demand verses a Supply Strategy for entering a market.
Customer driven innovation is an innovation that is created in response to an unmet need in the market place. This is a demand function. The force driving the innovational processes is the demand by a segment of the market for the solution to a problem they perceive.An example would be a smaller more efficient power source for a cell phone.:Customers demand lighter cell phones with a longer battery life and will respond to any innovation that satisfies those needs by supporting the introduction of such a product. (Demand strategy)
A customer centered innovation is an innovation created by the seller to address a need he/she perceives in the market or a specific niche in the market. This is a supply function. The force driving the innovation will be the innovator. The innovator will have to "push" the innovation into the market. For example an App for a cell phone that enables a customer to pay for a cup of coffee using the App with their cell phone rather than with cash or a credit/debt card. Here the customer has many choices for buying and paying for his/her cup of coffee and the inventor or innovation must compete with these. (Supply strategy).
This paper talks distinguishes high a low levels customer orientation and provides solid definitions along the way:
Nwankwo, Sonny. "Developing a customer orientation." Journal of consumer marketing 12.5 (1995): 5-15.
Just to throw another term in the forum, there is also customer centricity, which is Peter Fader's term relating to prioritizing customers with high CLV (customer lifetime value). See a book of the same name for introduction.
Michal -It would be helpful if you would provide a definition of CLV. Whose or what's lifetime? Or is this a promotion for the book?
Sorry, CLV is a measure of dollar value of a customer. It is conceptualized as a discounted cashflow of predicted future profits from a given customer. To save space, I didn't include the definition. It is just a concept that is related because Peter Fader uses the term customer centricity. I can recommend the book, and his work, despite having no affiliation with him.
I agree with Kaveh, They are the same but from a different perspectives. They are the same in that the customer is the focus of the innovation, not the company or innovator. They are different in so far as the demand for the innovation it generated by a need expressed by the consumer vs. a consumer need discovered through market research aided at determining customer "need".
Customer driven is a demand that arises from the customer experience and dissatisfaction with the choices currently available in the marketplace. Customer centered is perceived customer need(s) that the producer discovers and seeks to satisfy by expanding the choices available within a product category to satisfy a particular market segment.
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