INNOVATION FOR NOT TO BE ELIMINATED IN THE GLOBAL WORLD
The countries are eliminating the commercial barriers by means of the free trade agreements they enter into with each other and they seek for the ways of expanding to the non-contracted countries through the contracted ones, whereby the customs tariffs are almost brought to zero levels. Hence, in this rapidly globalizing world, we have to conduct the competition with the products of the firms that we have not even heard of, which competition we used to conduct with the domestic firms. With the inclusion of the commodities with the origin of China and India, our price competitiveness has been eliminated and our lack of efficiency and technological infrastructure has come to the surface. Therefore, it has been crucial to reach firms with large capital, undersign larger projects with higher capitals, and perform innovations that will demonstrate our difference in order to attain the sizes with which we can ensure competition once again in price and efficiency. The concept of innovation that we heard of very often recently, which is translated into Turkish as “innovation,” means a difference, change, and new things in our language. The definition of innovation in enterprises is one-to-one related with the innovative understanding, culture, and belief of that enterprise. The biggest priority in positioning innovation in enterprises is the provision of the new infrastructure that they would use in developing new products. For that purpose, the administrative units consist of the personnel who are open for changes, loving and adopting new things by way of establishing an Innovation-oriented understanding of management. Thanks to it, enterprises will find the opportunity to renew themselves constantly by keeping close track of the technological developments.
How must the harmony between Innovation and brand be? Creation of a powerful brand is the biggest target of many enterprises and it is also their most important asset. Tendency of clients for loyalty to a brand varies in the course of time. Researches conducted expressly reveal that there is no real deep love between customers and a brand. It is also demonstrated that advertising is not sufficient to increase the reputation of a brand alone, that there is a direct correlation between customer satisfaction and brand loyalty, and that quality, product diversity, difference, innovation, and of course price in the products and services presented are important, are effective in the preference of the products by people. However, the loyalty of customers for the brand continues pro rata our ability to continue their requests and expectations that vary in the course of time. We see the most manifest example of this in the “telecommunication companies,” in which the ranges of products are very large. Telecommunication installations ware in the heart of a serious change on the market. With the explosive growth of mobile telecommunication, broadband technology became highly widespread.
Upon the launch of new innovative products on the market with the advent of new technologies, as well as new production techniques, they are appearing to their customers with different services and pricing at all times. And as a result of these, it appears that the rate of clients’ change of their operator became almost 24% per annum. How can the quality of the services and products presented be increased through innovation? Enterprises must know how to renew themselves every day without looking back in any case and satisfying with the point they have attained, and by being in the thought of “how can I progress more and more?” As Mevlana says, “My dear life has gone along with yesterday! Whatever belongs to yesterday, now it is time to say new things.”… Enterprises must question the quality of the products and services they have so far presented and they must be in search of ‘How can I move them to higher levels?’ and thanks to this, they must provide their companies with the opportunity of implementing by making Innovation, which is a key in attaining success, a policy.
In the initiation of Innovation in your enterprise, the answers to the following questions you will find will be helpful as a starting point: What are the most important reasons for people to receive your products and services? Why must customers accept your proposal? What can the two significant changes that will shape your sector in the following five years be? How have you positioned yourself to take part in such changes? What is the most important thing that you are obliged to present to your customers? Why is it important for you? And why is it important for your customer? What would you want people in your dreams to say about your company and services? What are necessary for people to say it? What are the technological developments in other sectors that can be adapted to your businesses, products, and services; that can increase quality; and that can provide you with cost advantage? What are the things that your competitors do and that drive you crazy? What are the things that your competitors do and that excite and drive your customers crazy? What must your competitor be doing to drive you crazy? In short, you can put yourself into the shoes of your customer purchasing your product or service and ask: “What would I demand if I were the party that demands not the party that supplies? Is the product and service presented to me sufficient in return of what I pay? What would be more? Are there other enterprises outside, which can procure it? According to the data of the IMF, in a period in which economy disintegrated from the society, production came to a halt, and thirty million people became unemployed as a result of the closure of their plants, only the firms that were able to renew themselves, to wear a new shirt, and to differentiate before their customers were able to survive.
Production means industry. Industry means technology for today. Regardless of the field of activity, those firms that make use of technology in the best way and that develop new ideas have acquired the leadership and succeeded to be in the forefront. We see this in the examples of General motor and Bill Gates in the best way. Henry Ford who said, “I would produce faster horse-drawn carriages if I looked at my surroundings rather than the horizons,” rendered General Motors the biggest company of the world thanks to such farsightedness of him and the importance he attaches to innovation. However, unfortunately, presently dominating management was unable to continue his success and as a result of the divergence of the company from its philosophy, the market value of General Motors with 100 years of history, which had the title of the biggest and most valuable company of the world for many years, declined to 20 billion dollars. On the other hand, Bill Gates’s Microsoft that only has a 30-year history doubled General Motors in terms of stock prices and reached the market value of 170 billion dollars. All these rapid developments and globalizing world say to us, “Innovation in order not to be eliminated.”
Assit.Prof.Dr. MEHMET NACİ EFE