Innovation in Turkish SMEs in Textile Industry

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Innovation in Turkish SMEs in Textile Industry

• BALYEMEZ, Figen, Istanbul Commerce University,
• fbalyemez_at_iticu.edu.tr
• DEVELI, E. Ildem, Istanbul Commerce University,
  ideveli_at_iticu.edu.tr
• BAYAZIT SAHINOGLU, D. Zeynep , Istanbul Commerce
  University
• zbayazit_at_iticu.edu.tr

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Innovation

• Innovation Theory Technical Developments
  Commercial Applications
• Innovation Development of ideas, technology, new
  or developed product, or product management or
  marketing management.

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Innovation

• Suggested as a management technique or a
  leadership responsibility.
• Most managers are unable to recognize innovation.
• Innovation to have futuristic vision and seeing
  beyond the present and an ongoing commitment to
  newness.

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Recipe for successful innovation consists

• An optimistic and a positive CEO
• A chief innovation officer committed to leading
  the innovation effort
• A commonly agreed-upon new products strategy
• A balanced new product and technology portfolio
• A consumer driven development process
• Several dedicated professional teams
• A reward structure for new product participants
• A set of innovation norms and values and
• A measurement system for assessing innovation

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Uncertainty of Innovation

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

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Uncertainty of Innovation

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

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

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To gain competitive advantage

• The focus of innovation must be on developing
  new-to-the world or new-to-the-market products
  that provide consumers with totally new perceived
  benefits.
• CEOs talk about innovation as the lifeblood of
  the company and throw occasional resources and
  RD dollars into new product development. It is a
  hot topic in strategic planning meetings.

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How does innovation occur in your organization?
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In the bottom-up mode

• The leader must create a supportive environment
  that encourages local entrepreneurs to pursue
  their dreams and to interact with knowledge
  holders worldwide.
• A key driver of bottom-up innovation is indeed,
  an organizational culture that allows information
  exchange, risk taking, experimentation and
  learning from failures

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In the top-down mode

• Innovation leaders take the initiative, define
  the objective and mobilize their troops behind
  innovative projects.
• A key driver of top-down innovation is high level
  process management that starts with a vision but
  also grapples with marketplace realities.

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Customer Loyalty Innovation

• The purpose of a firm was to create and keep
  customer for its the customer who determines
  what a business is.
• To be succesful customer needs and wants should
  be considered
• Simply find out what customers want and give it
  to them.
• Innovation has the potential to engage peoples
  minds and imaginations, thus creating customers.
• Constant innovation is necessary to maintain a
  competitive advantage.

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SMEs

• Small and Medium Enterprises determine the 98
  of Turkish economy. These organizations must
  remain competitive both at the macro level and as
  suppliers of goods and services to larger
  organizations.
• In maintaining and developing this
  competitiveness it is not enough for SMEs to
  solely rely on change methods such as Continuous
  Improvement or Kaizen. They must revisit
  assumptions relating to process, people, culture,
  systems and technology

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Innovation Process
Current state of technical knowledge Current
economic and social environment

• Idea generation
• Recognition of a need
• Idea formulation

• Problem solving
• Design and evaluate
• Prototype solution

• Implementation and Diffusion
• Commercial development
• Manifacturing and marketing

Time
Attitudes and Actions
Corporate Entrepreneur
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Innovation is the specific tool of entrepreneurs

• Methodology
• Our investigation consists of a Turkish textile
  firm which have talent to innovate considering
  the customers interest and expectations.
• Deeply interviewed with CEOs in textile
  industry.
• T-Box that has innovation in product and
  package.

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Whats T-Box ?

• Is a trendy brand created in January, 2003
• At present 4050 sales point in four continental.
• Its objectives are fast buying and fast
  consumption
• Its trend is squeezed materials into a tiny cube.
  

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T - Box Products
Beach Towel
T-shirt for men
Lipstick
Blouse
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About the products

• Its the only
• sequeezed product.
• product that has money back in its package.
• textile product that has funny using
  descriptions.
• Turkish brand that never goes on sale for 12
  months.
• product which has concept stores that you cannot
  touch, try and buy but the products magneted to
  billboards as showcase.
• product that has marketing strategy of fast,
  different, enjoyable and surprising.

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Innovation for T-Box

• Its the most important value in competiton.
• Its an observable difference.
• When developing new phases one considers risks
  and during application one should be flexible to
  adopt changes and errors.

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Priorities of T-box team in innovation

• To whom its new
• New to the world new to the market new to the
  consumer
• New to the industry
• New to the academic world and new to the firm

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Priorities of T-box team in innovation

• Whats new?
• New product, new product qualifications, new
  product design, new competition, new changes in
  consumer wants.
• New technology - new processes.

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Innovation for T-Box

• In general all new things have competitive
  advantage.
• In order to be successful adopting right
  strategies supporting right vision is important.
• From day one, T-box is an extra-ordinary brand
  with its products, sales channels, packages and
  promotion strategies.
• It is a CONCEPT brand.

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CEOs vision for T-Box

• Considering marketing communication mix T-box
  does not have yet competitors in the market.
• But price and variations of product is
  considered ZARA, MANGO can be classified as a
  chance for consumers.
• Excluding all T-box consumers are a product of a
  life style thats created.
• Targeting this audience qualifies anyone as a
  competitor.

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CEOs vision for T-Box

• T-box innovation is not a typical one but a
  design with newly developed technologies.
• Its a product innovation of taking typical
  materials to a very top unpredictable level.
• Its a marketing innovation of communicating with
  customers at all times.
• Its a business model innovation of changing
  existing values of a firms supply chain
  management and applicating new in every stage.
• To conclude, Boyner group and T-box is adapting
  radical, strategic, applicative, process and
  experience innovations.

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Conclusion

• Generally every innovation creates competitive
  advantage but you have to support it with the
  right strategy.
• Nowadays, almost every market has highly
  intensive competition,in order to gain loyalty
  you have to learn from the market, your customer
  needs and be innovative and have the advantage.

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Conclusion

• SMEs in the innovation process have some
  difficulties like capital,distinct and different
  management skills,technology.
• In order to cover the agressive market needs
  SMEs should be innovative.
• So there is a dilemma.In order to solve this
  dilemma, with limited havings,they have to be
  more innovative.

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Conclusion

• CEOs vision is the most critical point in the
  innovation process.
• CEOs have to adapt radical,strategic,applicative
  process and experience innovations.
• CEOs should be taking the lead and communicating
  innovations importance.

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Thank you