Utilizing Data in New Products and Services Builds on Marketing and Technological Capabilities
A newly published research article explores the use of data in innovation for established industrial business-to-business (B2B) companies. The study analyzes the innovation capabilities of six industrial companies in utilizing their own and shared data.
The research indicates that marketing and technological capabilities are crucial for data-driven innovation. While strong technological capabilities are necessary for innovating with data, they must be complemented by robust marketing capabilities. Interestingly, marketing capabilities were a more significant obstacle to data-driven innovation than technological capabilities in five out of the six companies examined.
One of the most significant challenges identified in the studied companies was customer involvement in product and service development. Innovating with data requires a different approach to collaboration with customers compared to traditional development work undertaken by industrial companies. The lack of customer perspective in the innovation process was evident in the companies' difficulty in communicating the added value of their solutions to their customers in a way that they could easily comprehend.