კონფერენცია

∘ Manana Kharkheli ∘ Giorgi Morchiladze ∘
INNOVATION MANAGEMENT CHALLENGES IN THE SERVICE FIELD

Summary

Successful companies are able to constantly innovate in the long-term period and they can offer a different kind of novelties to consumers. Competition makes it mandatory for any company management to create a system that is constantly capable of offering customers something new, other wise, they will fail in competition.

Innovation management is a difficult and complex process. At first, management needs to establish on how to develop right innovative strategies, and then to implement it well.

Due to the fact that, the main purpose of the commercial organization is to earn profit, during innovation management company management should focus on two milestones:

How to increase revenue
How to decrease expenses

Accordingly, company management should create such an innovation management system, where in both directions will be the emphasis.

A company can increase the number of customers, only if management analyzes what is important value for customers. Related to this, considerable practical value has the research of W. Chan Kim and R.Mauborgne about "Blue Ocean Strategy", according to which the potential difference between Competitors can be found in the following ways.

Deﬁne their industry similarly and focus on being the best within it;
Look at their industries through the lens of generally accepted strategy;
groups (such as luxury automobiles, economy cars, and family vehicles), and strive to stand out in the strategic group they play in;
Focus on the same buyer group, be it the purchaser (as in the ofﬁce equipment industry), the user (as in the clothing industry), or the inﬂuencer (as in the pharmaceutical industry);
Deﬁne the scope of the products and services offered by their industry similarly;
Accept their industry’s functional or emotional orientation;
Focus on the same point in time — and often on current competitive threats in formulating strategy [W.Chan Kim, R.Mauborgne, 2005:48].

After analyzing, management should establish, how will change the value offered to consumers, what component of offered value will be: increased, decreased, added and canceled. In turn, developed strategy should be easy to understand and determine, what is the direction of the company.

In conclusion, it can be said, that management has to constantly try to maximize the value offered to consumers by adding new benefits, as well as minimizing non important customer services, because of reduction expanses and increasing revenue.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Manana Kharkheli ∘ Giorgi Morchiladze ∘ INNOVATION MANAGEMENT CHALLENGES IN THE SERVICE FIELD Summary Successful companies are able to constantly innovate in the long-term period and they can offer a different kind of novelties to consumers. Competition makes it mandatory for any company management to create a system that is constantly capable of offering customers something new, other wise, they will fail in competition. Innovation management is a difficult and complex process. At first, management needs to establish on how to develop right innovative strategies, and then to implement it well. Due to the fact that, the main purpose of the commercial organization is to earn profit, during innovation management company management should focus on two milestones: How to increase revenue How to decrease expenses Accordingly, company management should create such an innovation management system, where in both directions will be the emphasis. A company can increase the number of customers, only if management analyzes what is important value for customers. Related to this, considerable practical value has the research of W. Chan Kim and R.Mauborgne about "Blue Ocean Strategy", according to which the potential difference between Competitors can be found in the following ways. Deﬁne their industry similarly and focus on being the best within it; Look at their industries through the lens of generally accepted strategy; groups (such as luxury automobiles, economy cars, and family vehicles), and strive to stand out in the strategic group they play in; Focus on the same buyer group, be it the purchaser (as in the ofﬁce equipment industry), the user (as in the clothing industry), or the inﬂuencer (as in the pharmaceutical industry); Deﬁne the scope of the products and services offered by their industry similarly; Accept their industry’s functional or emotional orientation; Focus on the same point in time — and often on current competitive threats in formulating strategy [W.Chan Kim, R.Mauborgne, 2005:48]. After analyzing, management should establish, how will change the value offered to consumers, what component of offered value will be: increased, decreased, added and canceled. In turn, developed strategy should be easy to understand and determine, what is the direction of the company. In conclusion, it can be said, that management has to constantly try to maximize the value offered to consumers by adding new benefits, as well as minimizing non important customer services, because of reduction expanses and increasing revenue.