Investigation of Customer-Driven Innovation

Abstract: Context:- Software companies have changed their strategies from “innovating for customers” and “innovating with customers” to innovating “by customers” which is also known as customer-driven innovation. Actually, companies move toward customer-driven innovation programs because they need to collect as many ideas as possible from suitable customers to ensure their global competitiveness and set the stage for profitable growth. As customer-driven innovation is comparatively a new trend, the objective of our research is to explore its status in the new era of software development. Objectives:- The main aim of our study is to investigate customer-driven innovation in the modern era of software development. It also explores the motives, benefits, communication channels and barriers between customers and software companies to cooperate with each other. Methods:- Systematic Literature Review (SLR) and industrial interviews are two basic types of data collection methods which are utilized to accomplish the objectives of our study. Then qualitative data analysis software is used to perform thematic analysis (Grounded Theory) in order to draw conclusions and highlight useful information from the collected data. Results:- Based on the SLR and interviews result the conclusion was made that there are different types of motives and benefits for company and customer to cooperate with each other during idea generation stage of product and service innovations. We identified various types of activities and communication channels in the context of customer-driven innovation. In addition, we identified different types of barriers that can limit the cooperation between company and customers. Conclusions:- The comparison between theory and practice explored most important motive and benefit for company and customers to cooperate with each other during ideation process of product and service innovation. It also identified most significant activities and communication channels for idea generation in the context of customer-driven innovation. In addition, we identified most common barriers which prevent company and customers to cooperate with each other during ideation process.