11 November 2009

Accenture says tech-driven approach to CE innovation outdated

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Accenture
Consumer electronics companies must rethink the old technology-driven approach to innovation because industry convergence has made this model obsolete, claims a study by Accenture.

In the converging world, “high-performance businesses in the CE industry have begun to embrace a consumer-engagement-driven model of innovation,” but many CE companies have not. Even those companies embracing the new approach to innovation, however, have difficulty converting successful concepts into successful products and services, the study said. […]

Today, CE technologies have converged with “media, IT technologies, games, Internet, [and] mobile…into the same marketplace and compete against each other.” As a result, “the traditional eco-system is transformed. Technology, licensing, and content provider relationships no longer determine who dictates the rules of the game,” Accenture said. “The traditional standardization and alliance processes are becoming less effective due to competing interests, business models and strategies of ever more players and industries.”

“With so many industries competing for the consumer’s attention, the consumer has become the new focus,” the study claimed.

In this new environment, CE companies can better position themselves to accelerate growth if they “embrace a consumer-engagement-driven model of innovation,” Accenture contended. To accomplish this, “CE companies need to engage with consumers at the onset and throughout the innovation process.” […]

Such companies also conduct a lot of consumer behavior research, but their research does not always take the form of traditional market research studies, the company said. Their research tends “to more observational and ethnographic in nature.”

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