Tuesday, December 11, 2007

Customer Focus: Key to success

Once again Booz Allen Hamilton experts Barry Jaruzelski and Kevin Dehoff found no correlation between companies R&D spending and their innovation success. Their study found that the most successful companies align their innovation efforts with their corporate strategy and listen to their customers at every stage. via strategy+business

"And as in years past, we found no statistically significant connection between the amount of money a company spent on innovation and its financial performance."

"Companies more focused on customer insight or market needs are also more successful than their less-customer-focused peers. In particular, companies that directly engaged their customer base had twice the return on assets and triple the growth in operating income of the other survey respondents."

I look forward to reading this report every year.

1 comment:

Chad said...

Interesting points, Rafael! Did the report include any numbers to support the trends they observed on companies that have included customer insights vs. those who do not? As a member of UCD I am interested in anything that might indicate an ROI on customer insights.