Innovation in Turkish Innovation in Turkish SME’s in Textile IndustrySME’s in Textile Industry

BALYEMEZ, Figen, Istanbul Commerce University,BALYEMEZ, Figen, Istanbul Commerce University,fbalyemez@iticu.edu.trfbalyemez@iticu.edu.tr

DEVELI, E. Ildem, Istanbul Commerce University, DEVELI, E. Ildem, Istanbul Commerce University, ideveliideveli@@iticuiticu.edu.tr.edu.tr

BAYAZIT SAHİNOGLU, D. Zeynep , Istanbul BAYAZIT SAHİNOGLU, D. Zeynep , Istanbul Commerce UniversityCommerce Universityzbayazitzbayazit@@iticuiticu.edu.tr.edu.tr

InnovationInnovation

Innovation= Theory + Technical Innovation= Theory + Technical Developments + Commercial Developments + Commercial ApplicationsApplications

Innovation: Development of ideas, Innovation: Development of ideas, technology, new or developed technology, new or developed product, or product management or product, or product management or marketing management. marketing management.

InnovationInnovation

Suggested as a management Suggested as a management technique or a leadership technique or a leadership responsibility. responsibility.

Most managers are unable to Most managers are unable to recognize innovation.recognize innovation.

Innovation: to have futuristic vision Innovation: to have futuristic vision and seeing beyond the present and and seeing beyond the present and an ongoing commitment to newness. an ongoing commitment to newness.

Recipe for successful innovation Recipe for successful innovation consists:consists:

An optimistic and a positive CEOAn optimistic and a positive CEO A chief innovation officer committed to leading A chief innovation officer committed to leading

the innovation effortthe innovation effort A commonly agreed-upon new products strategyA commonly agreed-upon new products strategy A balanced new product and technology A balanced new product and technology

portfolioportfolio A consumer – driven development processA consumer – driven development process Several dedicated professional teamsSeveral dedicated professional teams A reward structure for new product participantsA reward structure for new product participants A set of innovation norms and values and A set of innovation norms and values and A measurement system for assessing innovationA measurement system for assessing innovation

Uncertainty of InnovationUncertainty of Innovation

Uncertainty accompanies Uncertainty accompanies innovation, and the degree of risk innovation, and the degree of risk is that CEOs talk to innovation is that CEOs talk to innovation butbut do not actually adopt it as do not actually adopt it as a critical component of a critical component of their culture or make it a their culture or make it a top priority. top priority.

Uncertainty of InnovationUncertainty of Innovation

Most CEOs deny their reluctance to Most CEOs deny their reluctance to tackle innovation because it is high-tackle innovation because it is high-risk and/or high-cost, but inevitably risk and/or high-cost, but inevitably organizations fail to allocate organizations fail to allocate adequate resources – human and adequate resources – human and financial – to support innovation. financial – to support innovation.

Now more than ever innovation Now more than ever innovation should be a company-wide should be a company-wide priority, and CEOs should be priority, and CEOs should be taking the lead and taking the lead and communicating its importance. communicating its importance.

To gain competitive advantageTo gain competitive advantage

The focus of innovation must be on The focus of innovation must be on developing new-to-the world or new-to-developing new-to-the world or new-to-the-market products that provide the-market products that provide consumers with totally new perceived consumers with totally new perceived benefits. benefits.

CEOs talk about innovation as the lifeblood CEOs talk about innovation as the lifeblood of the company and throw occasional of the company and throw occasional resources and R&D dollars into new resources and R&D dollars into new product development. It is a hot topic in product development. It is a hot topic in strategic planning meetings. strategic planning meetings.

How does innovation occur in your How does innovation occur in your organization?organization?

“Bottom-upİnnovation”

Idea-fuelledStaff-initiated

Entrepreneur-drivenMgm’t-supported

Vision-fuelledMgm’t-initiatedAmbition-drivenStaff-supported

“Top-down innovation”

Drivers

In the bottom-up modeIn the bottom-up mode

The leader must create a supportive The leader must create a supportive environment that encourages local environment that encourages local entrepreneurs to pursue their dreams and entrepreneurs to pursue their dreams and to interact with knowledge holders to interact with knowledge holders worldwide. worldwide.

A key driver of bottom-up innovation is A key driver of bottom-up innovation is indeed, an organizational culture that indeed, an organizational culture that allows information exchange, risk taking, allows information exchange, risk taking, experimentation and learning from failures experimentation and learning from failures

In the top-down modeIn the top-down mode

Innovation leaders take the initiative, Innovation leaders take the initiative, define the objective and mobilize their define the objective and mobilize their troops behind innovative projects. troops behind innovative projects.

A key driver of top-down innovation is high A key driver of top-down innovation is high level process management that starts with level process management that starts with a vision but also grapples with a vision but also grapples with marketplace realities. marketplace realities.

Customer Loyalty &InnovationCustomer Loyalty &Innovation The purpose of a firm was to create and The purpose of a firm was to create and

keep customer – for “it’s the customer who keep customer – for “it’s the customer who determines what a business is”. determines what a business is”.

To be succesful customer needs and wants To be succesful customer needs and wants should be considered should be considered

Simply find out what customers want and Simply find out what customers want and give it to them.give it to them.

Innovation has the potential to engage Innovation has the potential to engage peoples” minds and imaginations, thus peoples” minds and imaginations, thus creating customers.creating customers.

Constant innovation is necessary to Constant innovation is necessary to maintain a competitive advantage. maintain a competitive advantage.

SMEs SMEs Small and Medium Enterprises determine the 98 % Small and Medium Enterprises determine the 98 %

of Turkish economy. These organizations must of Turkish economy. These organizations must remain competitive both at the macro level and as remain competitive both at the macro level and as suppliers of goods and services to larger suppliers of goods and services to larger organizations. organizations.

In maintaining and developing this In maintaining and developing this competitiveness it is not enough for SMEs to solely competitiveness it is not enough for SMEs to solely rely on change methods such as Continuous rely on change methods such as Continuous Improvement or Kaizen. They must revisit Improvement or Kaizen. They must revisit assumptions relating to process, people, culture, assumptions relating to process, people, culture, systems and technology systems and technology

Added Value

Innovation ProductDegree of Novelty

* Style change * Product improvement * Start-up business* Product line extension * New Product * Major innovation

Providing novelty to:

* New products and services to customers * New Solutions* New methods of commercialisation * New Processes

Innovation Process

Current state of technical knowledgeCurrent economic and social environment

Idea generationRecognition of a needIdea formulation

Problem solvingDesign and evaluatePrototype solution

Implementation and DiffusionCommercial developmentManifacturing and marketing

Attitudes and Actions

Corporate Entrepreneur

Time

““Innovation is the specific tool of Innovation is the specific tool of entrepreneurs”entrepreneurs”

Methodology:Methodology:

Our investigation consists of a Turkish Our investigation consists of a Turkish textile firm which have talent to innovate textile firm which have talent to innovate considering the customer’s interest and considering the customer’s interest and expectations. expectations.

Deeply interviewed with CEO’s in textile Deeply interviewed with CEO’s in textile industry.industry.

T-Box: that has innovation in product and T-Box: that has innovation in product and package. package.

What’s T-Box ?What’s T-Box ?

Is a trendy brand created in Is a trendy brand created in January, 2003January, 2003

At present 4050 sales point in four At present 4050 sales point in four continental. continental.

Its objectives are: fast buying and Its objectives are: fast buying and fast consumptionfast consumption

Its trend is squeezed materials into Its trend is squeezed materials into a tiny cube. a tiny cube.

T - Box Products T - Box Products

Beach TowelT-shirt for men

Lipstick Blouse

About the products;About the products; It’s the onlyIt’s the only sequeezed product.sequeezed product. product that has money back in its package.product that has money back in its package. textile product that has funny using descriptions.textile product that has funny using descriptions. Turkish brand that never goes on sale for 12 Turkish brand that never goes on sale for 12

months.months. product which has concept stores that you product which has concept stores that you

cannot touch, try and buy; but the products cannot touch, try and buy; but the products magneted to billboards as showcase. magneted to billboards as showcase.

product that has marketing strategy of fast, product that has marketing strategy of fast, different, enjoyable and surprising. different, enjoyable and surprising.

Innovation for T-BoxInnovation for T-Box

It’s the most important value in It’s the most important value in competiton. competiton.

It’s an observable difference. It’s an observable difference. When developing new phases one When developing new phases one

considers risks and during application considers risks and during application one should be flexible to adopt one should be flexible to adopt changes and errors. changes and errors.

Priorities of T-box team in Priorities of T-box team in innovationinnovation

To whom it’s new;To whom it’s new; New to the world – new to the market New to the world – new to the market

– new to the consumer– new to the consumer New to the industry New to the industry New to the academic world and new New to the academic world and new

to the firmto the firm

Priorities of T-box team in Priorities of T-box team in innovationinnovation

What’s new?What’s new? New product, new product New product, new product

qualifications, new product design, qualifications, new product design, new competition, new changes in new competition, new changes in consumer wants. consumer wants.

New technology - new processes.New technology - new processes.

Innovation for T-BoxInnovation for T-Box

In general all new things have competitive In general all new things have competitive advantage. advantage.

In order to be successful adopting right In order to be successful adopting right strategies supporting right vision is strategies supporting right vision is important. important.

From day one, T-box is an extra-ordinary From day one, T-box is an extra-ordinary brand with its products, sales channels, brand with its products, sales channels, packages and promotion strategies. packages and promotion strategies.

It is a CONCEPT brand.It is a CONCEPT brand.

CEOs vision for T-BoxCEOs vision for T-Box

Considering marketing communication Considering marketing communication mix T-box does not have yet mix T-box does not have yet competitors in the market. competitors in the market.

But; price and variations of product is But; price and variations of product is considered ZARA, MANGO can be considered ZARA, MANGO can be classified as a chance for consumers. classified as a chance for consumers.

Excluding all T-box consumers are a Excluding all T-box consumers are a product of a life style that’s created. product of a life style that’s created.

Targeting this audience qualifies Targeting this audience qualifies anyone as a competitor. anyone as a competitor.

CEOs vision for T-BoxCEOs vision for T-Box T-box innovation is not a typical one but a T-box innovation is not a typical one but a

design with newly developed technologies. design with newly developed technologies. It’s a product innovation of taking typical It’s a product innovation of taking typical

materials to a very top unpredictable level.materials to a very top unpredictable level. It’s a marketing innovation of communicating It’s a marketing innovation of communicating

with customers at all times. with customers at all times. It’s a business model innovation of changing It’s a business model innovation of changing

existing values of a firm’s supply chain existing values of a firm’s supply chain management and applicating “new” in every management and applicating “new” in every stage. stage.

To conclude, Boyner group and T-box is To conclude, Boyner group and T-box is adapting radical, strategic, applicative, adapting radical, strategic, applicative, process and experience innovations. process and experience innovations.

ConclusionConclusion

Generally every innovation creates Generally every innovation creates competitive advantage but you have competitive advantage but you have to support it with the right strategy.to support it with the right strategy.

Nowadays, almost every market has Nowadays, almost every market has highly intensive competition,in order highly intensive competition,in order to gain loyalty you have to learn from to gain loyalty you have to learn from the market, your customer needs the market, your customer needs and be innovative and have the and be innovative and have the advantage.advantage.

ConclusionConclusion

SME’s in the innovation process have SME’s in the innovation process have some difficulties like capital,distinct and some difficulties like capital,distinct and different management skills,technology.different management skills,technology.

In order to cover the agressive market In order to cover the agressive market needs SME’s should be innovative.needs SME’s should be innovative.

So there is a dilemma.In order to solve this So there is a dilemma.In order to solve this dilemma, with limited havings,they have dilemma, with limited havings,they have to be more innovative.to be more innovative.

ConclusionConclusion

CEO’s vision is the most critical point CEO’s vision is the most critical point in the innovation process.in the innovation process.

CEO’s have to adapt CEO’s have to adapt radical,strategic,applicative process radical,strategic,applicative process and experience innovations.and experience innovations.

CEOs should be taking the lead CEOs should be taking the lead and communicating innovation’s and communicating innovation’s importance. importance.

Thank youThank you