Innovation in Kinetix

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RESEARCH METHODS .......................................................................................................... 2PART A) .................................................................................................................................... 2HISTORY OF KINETIX ............................................................................................................ 2VISION&MISSION ....................................................................................................................3QUALITY POLICY ................................................................................................................... 3

Brand Value & Components of Brand Identity .......................................................................... 3WHAT IS INNOVATION? ........................................................................................................ 4Goals of Innovation .....................................................................................................................5CHANGES IN INNOVATION .................................................................................................. 6Additional to past vs. present innovation process .......................................................................7PART B) ..................................................................................................................................... 91)R&D INVESTIGATIONS .......................................................................................................9R&D Functions ........................................................................................................................... 9Product R&D .............................................................................................................................10Service R&D: ............................................................................................................................10Scientific Freedom .................................................................................................................... 11

2) OCTOPUS STRATEGY INVESTIGATION ...................................................................... 13Strategic Alliances .................................................................................................................... 13Stages of Alliance Formation .................................................................................................... 13Reasons for entering a strategic alliance ................................................................................... 14Strategic alliances of the firm ................................................................................................... 15How They benefit from the strategic alliances .........................................................................15Risks of strategic alliances network ..........................................................................................17Selection Risk: ..........................................................................................................................17Monitoring Risk: .......................................................................................................................17Failure Identification Risk: ...................................................................................................... 18Strategic objectives related risks ...............................................................................................18Operations objectives related risks: .......................................................................................... 19Reporting objectives related risks: ............................................................................................20Compliance objectives related risks .......................................................................................... 203)OTHER ISSUES ...................................................................................................................20REFERENCES ..........................................................................................................................24

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KINETIX

RESEARCH METHODS

In the preparation period of our project, we have benefited from the official website of

KINETIX, face to face interview and some specific articles regarding R&D and innovation

issues.

We mostly gathered information from the interview with product manager of

KINETIX sport shoes which includes valuable datas for our research. After working on these

datas, we have organized and analyzed the information and we reached the point to be able to

see product development, R&D, innovation practices in KINETIX. Working on specific

topics, individually, regarding the innovations in KINETIX, we achieved our goal as a team.

During the preperation period of the project, the most important knowledge that contributed to

our research has been the team discussions and synergy that we have created.

PART A)

HISTORY OF KINETIX

Kinetix was established in 1991 under the name of Ziylan Pazarlama A.S.

In 1994, they changed their names as Sporer A.S for achieving to continue their marketing in

domestic market. Sporer A.S is producing Kinetix and Torex brand name sport shoes. And

also they produce textile products as Kinetix. Kinetix is selling shoes,textile and accessorize

for women, men, children. Now Kinetix is a well known brand and third most chosen sports

shoes. Since 1997 Kinetix has been marketing and promoting boats. In 2005 they started to

prepare textile collections. Kinetix has 850 selling point in country-wide. The head quarter in

Bagcilar is serving with 70 personnel.

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VISION&MISSION

VISION

With a view to improve our firms effectiveness and efficiency in national market, being

Turkeys reliable and prestigious enterprise in our area of specialisation.

MISSION

To be one of the best young/sports clothing firm of Turkeys and its neighbours.

QUALITY POLICY

The firm is aim to grow in sports wear and to enter the overseas markets.The firm has the

ISO 9001 quality ceritficate. Because of this the firm is decisive to continue to develop its

organisation and try to be the market leader in domestic and overseas markets.

Brand Value & Components of Brand Identity

Brand Value Components of Brand Identity

Reliablity Honesty Young

Prestigious Dynamic Energic

Variety Contender Goer

Closeness Humanistic

Innovative Pioneering Stylish Global

Accessibility Appropriate

CONCEPTS OF KINETIX

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WHAT IS INNOVATION?2

The term innovation may refer to both radical and incremental changes in thinking, in things,

in processes or in services (Mckeown, 2008) Invention that gets out in to the world is

innovation. In many fields, something new must be substantially different to be innovative,

not an insignificant change, e.g., in the arts,economics,business and government policy. In

economics the change must increase value, customer value, or producer value. The goal of

innovation is positive change, to make someone or something better. Innovation leading to

increased productivity is the fundamental source of increasing wealth in an economy

1 Benefited from Kinetix orientation report2 Benefited from wikipedia

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http://en.wikipedia.org/wiki/Inventionhttp://en.wikipedia.org/wiki/Artshttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Government_policyhttp://en.wikipedia.org/wiki/Inventionhttp://en.wikipedia.org/wiki/Artshttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Government_policy


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Goals of Innovation3

Effective innovation management requires the implementation of a number of processes and

the employ of a number of tools. At the outset it is important that the culture of the

organization empowers employees and encourages them to submit their ideas. Most

importantly management should adopt the appropriate innovation strategy to lead the

innovation process and manage the innovation portfolio. The following summarizes the

various objectives that management should aim for under the innovation management stage:

Effect a shift in the way the organization sees itself where innovation is recognized as

the way of doing business

Deciding upon the innovation strategy that best fits the organizations situation, and

enable it attain its vision.

Creating a portfolio of innovation projects to translate competitive strategies and to

manage risk across the whole organization.

Define a criteria for the selection and prioritization of projects within the portfolio to

weed out less probable projects as soon as possible

Effect the necessary structural changes to arrange skills throughout the organization in

competence centers, to enable the formation of the right team for the purposes of the

innovation project.

Arrange current and potential future alliances in a portfolio that can be tapped when

needed, and define when and how such alliances are to be made (governing

conditions).

Foster an organizational culture that promotes innovation by allowing employees time

to innovate and the implementation of their own ideas for improving job performance.

3 Benefited from http://www.ipmall.info

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Develop and implement methods that enable tapping into the organizations

intellectual capital.

CHANGES IN INNOVATION4

The term changes in innovation is distinguished from technological development.

And in this part you will see the changes in technology and this situations effects on

changes in innovation. There are a lot of things have changed in technology for 20 years.

So these changes have changed the innovation process. What has changed???5

In the past: In the past innovation assume that companies subject matter experts (within

companies company) invent and design innovative new products to meet needs customers

may not even realized they had. Then companies marketing and advertising departments

make prospective customers aware of those needs, wrap a brand experience around

companies innovative products, package and price those offerings and bring them to

market.

Present customer-focused innovation:Communication channels are the means by which a

source conveys a message to a receiver. Information may be exchanged through two

fundamentally different, yet complementary, channels of communication. Awareness is more

often obtained through the mass media, while uncertainty reduction that leads to acceptance

mostly results from face-to-face communication. So this change effected innovation. In these

years to flip the innovation process around and assume that customers have outcomes that

they want to achieve. Because of they have deep knowledge about their own circumstances

and contexts, and they are not happy about the way they have to do things today. They will

innovate - with or without your help - to create better ways to do things or to design products

and services that meet their specific needs.

4 Benefited from wikipedia5 Benefited from wordpress.com

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Theres obviously a big difference in past and present innovation processes. But the impact to

organizations who dont understand that the game has changed is much larger. Just as the

Consumer has begun to take control of media, they will also demand a starring role in co-

creating your companys products & services.

This is an evolution that makes perfect sense. In past innovations, we didnt really know what

companies customers want - we may think we do, but at best were shooting in the dark, and

hoping we hit something. From a marketing and sales standpoint, companies new products

are pushed through the sales channel to the customer, who often has to be incentivized with

discounts, rebates and other creative carrots to persuade them to buy. So these programs cut

into gross margins and profits, and usually arent very effective.

In contrast, if you really understand not only your customers needs, but the critical outcomes

they want to achieve, you can then work shoulder-to-shoulder with your key customers to

co-create products that meet those needs. Theres no need to push your offerings,

because customers will gladly pay a premium for products and services that make their lives

easier and more profitable. Higher margins and profits for the company.

Additional to past vs. present innovation process6

The companies were working only with smart people within the companies in the past. But

they now need to work with smart people who is from inside and outside the companies. They

might discover from researches and developments (R&D) to make profit, and also were

developing it and ship it theirselves. If they discover it theirselves, they would get it to market

first. But nowadays external R&D can create significant value; internal R&D is needed to

claim some portion of that value. They don't have to originate the research to profit from it.

6 Benefited from wikipedia

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http://nextup.wordpress.com/2006/12/18/its-all-about-you/http://nextup.wordpress.com/2006/12/18/its-all-about-you/


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The company that gets an innovation to market first would win. At present building a

better business model is better than getting to market first. In previous years if a company

created the most and the best ideas in the industry, they could win. n recent years they don't

have to originate the research to profit from it.In the past they were controlling their

innovation process, so that their competitors didint profit from others ideas. But now the

companies should profit from others' use of their innovation process, and they should buy

others' intellectual property whenever it advances their own business model.

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PART B)

1)R&D INVESTIGATIONS

R&D Functions7

The R&D function is a strange function.In many organizations,the function means

working primarily on developing and improving existing technology and products.In a few

firms,it is defined working on advanced R&D,more akin to university projects.In almost no

organization does the R&D function operate in accordance with its real objective:

To help develop new things that drive profitable growth.

For some reason R&D has become distanced from delivering value.The majority of

R&D organizations do not talk to customers - they let marketing do that.They do not listen to

market needs.They rarely even listen to the rest of the company.The prime culprit is senior

management in R&D.They tend to be older,more set in their ways, and less willing to accept

that the old model of R&D,one they had to learn through the trenches over the last twenty

years,no longer functions.

Nowadays,the R&D function is facing a significant change of role and major

organizational transformations;as the innovation process becomes increasingly complex,so to

does the remit of corporate R&D.In addition to generating knowledge within the firm,R&D is

now about knowledge management,including the management of knowledge outside the

firm.Research and develop is becoming 'Aquire and Develop' and 'Connect and Develop'.

When we look thoroughly to the concept of R&D,we will be able to have some ideas about

their way of thinking on the function of R&D.

We made an interview with the firm Kinetix, a domestic sneakers and shoe

manufacturing firm,and try to learn one or two things about R&D functioning and other

7 Benefited from http://innovationbbl.blogspot.com/2006_11_01_archive.html

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issues.So,as we go into the deep of R&D functioning,we can understand that they are putting

this into two seperate categories:

Product R&D8

Since the world has come to a place,where technological developments are impossible

not to be aware of and really hard to follow,Kinetix is also doing his share on this

matter.According to their saying,the shoe industry is a complex one and many many people

are depending on this industry.There are thousands of workers,who are participating in

various kinds of working process on this huge business sector,so this is a big deal.That'swhy,Kinetix should always improve their way of working and developing new kinds of shoes

and sneakers.To be able to do so,they're applying different methods like new computer

programs,which optimizes the production process and saves time to them.They observe and

interpret the trend through the whole world and try to gain information about the best suitable

and effective way of producing shoes for people.But they say,it's not important only to be

quick on production,it's important to create the quality for costumer also.

Service R&D:

As you can guess,production is not the only thing that any kind of business is depend

on.It's only the beginning to create value and quality for costumers.After an effective and

successful manufacturing process comes a reliable and trustable delivery and service

process.That's the second leg of the R&D functioning.So,according to Kinetix's managers

words,it's an crucial way of gaining costumers attention to the brand,creating a desirable and

need satisfying service process.To reach a success on that matter,they try to change their old

habits of company structure the manager says.Because Kinetix is not a corporate firm,but a

family firm,there are stable habits on various matters,which are really hard to

8 Benefited from http://www.eirma.org/documents/casimir/ward-essay.pdf

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change.But,Kinetix is on its way of breaking them.And they already have gone to some point

the manager says.To be a little more spesific,they try to improve their information-function

groundwork and their form of organizational structure.About improving their information-

function groundwork,they use some high technological systems to provide the most efficient

and effective service for costumers and they also hire educated staff to improve peoples way

of thinking on that subject.Second,the form of organizational structure was a vertical structure

before,where the workers are lined from the most important person to the least important one

and the problem on that is losing time and energy on the way of creating good service for

costumers.So they also made some crucial changes on the form of the company's

organizational structure.

Scientific Freedom9

Scientific freedom,also known as freedom of scientific research and development

means to develop,manufacture and market technology-based products that provide equal

access to information and computing for those with vision impairments or learning

disabilities.

If we make a start from this explanation most of us can realize that scientific freedom

is very much related with improving products quality and to learn and develop the ways of

doing it.To be more understandable,it means to search every possible way for doing and

creating what's better for the costumer.That's the general idea about it.But,there are some

other issues related with scientific freedom also.For example:Time and Money.The scientific

researches and investigations on products and their potentials can be very time and money

consuming.It's an endless see.If you have the money,the power and the time to do these kinds

of researches in your spesific business sector,then you can do anything with the help of

science and techlonolgy.You can do and be the best for your costumers.So,as you can

imagine,'till this point,we were talking about the powerful and big companies in whole9 Benefited from http://www.freedomscientific.com/about/about.asp

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world.In shoe business it's not very different either.You know the big ones.Nike,Adidas,Puma

etc...To take this aside,if we look closer the domestic ones like Kinetix they don't the same

opportunities and power like the big companies.So,if Kinetix want to have a scientific

freedom,they should wait a little more.Because,in todays world,money means almost

everything.At least,it's what the manager of Kinetix tried to say to us.So,because they don't

have the same power and they are facing limitations on scientific freedom,they don't have any

freedom,they do researches and trying to accomplish some new ideas and innovations on their

business only the level their economical power lets them to do it.

Analyzing the Marketing/R&D and the Quality Assurance/R&D Interface

Integrating marketing and R&D inputs is one of the fundamental challenges in

managing innovation. Marketing's most important contribution is not getting it wrong rather

than getting it right, in setting minimum criteria in project evaluations rather than definite

targets, and in refocusing the attention of R&D staff through the very process of providing

input.10

Quality assurance covers all activities from design, development, production,

installation, servicing, documentation, verification and validation. This introduced the rules:

"fit for purpose" and "do it right the first time". It includes the regulation of the quality of raw

materials, assemblies, products and components; services related to production; and

management, production, and inspection processes.

One of the most widely used paradigms for QA management is the PDCA (Plan-Do-

Check-Act) approach.11

10 Benefited from http://www.sciencedirect.com11 Benefited from http://wikipedia.org

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Kinetix doesnt have their own production factory. And also they dont believe that the

technology for producing sport shoes is enough in turkey. Because of this reason, they are

making their production in China and some other middle - east countries. The companies

name were confidential. But the product manager told us they have some strategic alliances in

R&D, product development and IT.

2) OCTOPUS STRATEGY INVESTIGATION

Strategic Alliances12

A Strategic Alliance is a formal relationship formed between two or more parties to

pursue a set of agreed upon goals or to meet a critical business need while remaining

independent organizations.

Stages of Alliance Formation

A typical strategic alliance formation process involves these steps:

Strategy Development:Strategy development involves studying the alliances

feasibility,objectives and rationale,focusing on the major issues and challenges and

development of resource strategies for production,technology and people.It requires aligning

alliance objectives with the overall corporate strategy.

Partner Assessment:Partner assessment involves analyzing a potential partners

strengths and weaknesses,creating strategies for accommodating all partners management

styles,preparing appropriate partner selection criteria,understanding a partners motives for

joining the alliance and addressing resource capability gaps that may exist for a partner.

12 Benefited from http://wikipedia.org

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Contract Negotiation: Contract negotiations involves determining whether all parties

have realistic objectives,forming high calibre negotiating teams,defining each partners

contributions and rewards as well as protect any proprietary information,addressing

termination clauses,penalties for poor performance,and highlighting the degree to which

arbitration procedures are clearly stated and understood.

Alliance Operation:Alliance operations involves addressing senior managements

commitment,finding the calibre of resources devoted to the alliance,linking of budgets and

resources with strategic priorities,measuring and rewarding alliance performance, and

assessing the performance and results of the alliance.

Alliance Termination:Alliance termination involves winding down the alliance,for

instance when its objectives have been met or cannot be met or when a partner adjusts

priorities or re-allocated resources elsewhere.

Reasons for entering a strategic alliance

There can be various kinds of reasons of companies to feel needy for a strategic

alliance process.First of all,if two or more companies accomplish a successful strategic

alliance relationship,they will have access to eachothers resources like products,production

methods,manufacturing capacity,distribution channel,knowledge,expertise,intellectual

property etc...So they will have one or two clues about their way of thinking and doing things

on that particular business sector.If a company comes short on one matter(like using an high-

cost material on its products),the other one is there to provide any source of help to them.On

our project of Kinetix,it's the exact situation.The manager of Kinetix gives an example about

how they are not competent and strong enough to use leather on producing sneakers for their

costumers.And therefore,is the chinese alliance of them is helping them to get through that

problem by manufacturing sneakers using leather on its raw material.As you can see,they are

trading ideas and opportunities with eachother and it's a better way to seize todays business

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market and use the existing potential in their veins.Since creating an alliance gives them a

cooperative and colloborative structure,they are much stronger than the seperate individual

companies,which compete with them.Synergy always beats the individual effort in the

business world.And one another thing:with the technology transfer,like having access to

eachothers knowledge and expertise,they are able to cope with the economical risks and high

expenses.

Strategic alliances of the firm

Like the explanation above,Kinetix gives an critical amount of credit to strategicalliance issue.So,therefore,they have some strategic alliances all around the world.The

manager we interviewed didn't go too deep into details of names of alliances.But,the general

idea and strategy behind these strategic alliance process is very clear.They try to minimize

their external threads in their market and also want to gain the best result on profit and

costumer loyality with it.So,they lack of competing with big firms in some spesific areas like

producing,marketing,advertising etc... and therefore they use their strategic alliances

opportunities and power to get the best possible outcome for their organizations.The

production manager of Kinetix says:"If we lack of material or knowledge on some matter in

production process,we ask our alliance's help and trade some ideas with eachother.It's the best

way to get the desirable effect on costumer and on profit too."

From our interview,we are able to understand that Kinetix has a chinese strategic

alliance in production process and they help eachother to overcome the obstacles in both

business markets.

How They benefit from the strategic alliances

Like we said earlier,there are some important advantages of being in a strategic

alliance relationship.These advantages include:

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1)Allowing each partner to concentrate on activities that best match their capabilities:

Every firm has a potential of doing their business and this potential is the tool to shape

its way of thinking business and manufacturing products.So,every company should act and do

business according to their limitations.It's not different in Kinetix either.According to

managers words,they do their best to get their costumers attention and loyality and market

share,surely by knowing their physical and economical potential and their capabilities.It gives

them the chance to create the most possible value for their costumer,by letting the parts,they

can't do because of their limitations(for some reason),to the alliance firm.This will save them

both time and money in their own market and business sector.

2)Learning from partners & developing competences that may be more widely exploited

elsewhere:

Yes,that's an important subject for both parts of strategic alliance relationship.Learning

is the key word for all business firms,no matter what they produce or service.To learn

something gives a company an opportunity to improve and develop itself by all means.Not

only a product feature is here we are talking about.This is much more than the production

process of a product.This is the key issue that every company must pay attention

to.Production development is one thing,but developing the way of thinking by general means

is another.Learning creates a chance to develop and developing creates a chance to have some

difference than others.Isn't that the general idea behind the concept of a brand?Creating

difference.Feeling different.So,both our interviewee and we think that way.To create

difference on costumers eyes,Kinetix or any other brand should explore the unlearned things

on their area and develop their talents,point of view,competences.Only that way,they can

compete with the global challange around the world.It's another reason their strategic alliance

if there for them.

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3)Adequency and suitability of the resources & competencies of an organization for it to

survive:

Not a single resource is unlimited on this planet.Everything has an end point where it

can't be used anymore,especially on the business sector.So,a manager of an organization

should be very careful in spending the companies limited resources.Or the company will face

a inadequency of the resources.The stategic alliance of the firm is helping the company to

ease the pressure on its back,by giving more sources and competences to them.But these

resources and competencies should also be suitable with the alliance's organizational goals

and structure.Otherwise,its an empty gun for the strategic alliance and can't provide any help

on surviving in the market.

Risks of strategic alliances network

The benefits associated with strategic alliances are great,however strategic alliances

are risky endeavors that require careful and methodological risk management through their

life cycle(from partner selection to the partnership dissolution).In general terms,the firms and

managers should manage three types of risks:

Selection Risk:

It can be defined as the risk,that firm has nonexistent,irrelevant or unreliable processes

by which to select strategic partners.

Monitoring Risk:

It is the risk that result from the lack of appropriate financial or non-financial measures

for evaluating the progress of the alliance.

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Failure Identification Risk:

It means the risk that the firm will have nonexistent,irrelevant or unreliable processes

by which to identify when a partnership should be terminated.

While having this kinds of general risks on strategic alliance relationships,the

companies face spesific alliance partnership risks also,resulting from the setting goals and

objectives of the organization and developing strategies for these goals.So if we try to classify

these objectives into four distinctive categories,we have

1)Strategic

2)Operations

3)Reporting

4)Compliance

By distinguishing these objectives from one another,a firm can focus directly on the spesific

risks that may prevent the company from achieving its objectives in each of these areas.

The risks related with each part of the objectives are:

Strategic objectives related risks

a)Innovation risk:It's the risk that strategic partners will not maintain adequate levels of

innovation to support the firm's needs.

b)Intellectual property risk:It's the risk that your strategic partner will make an inappropraite

use of proprietary information in a manner that could negatively affect the firm.

c)Product/service failure risk:It's the risk that fault or non-performing products or services

from your strategic partners expose your company to sanctions from endcostumers.

d)Misalignment of incentive risk:It's the risk that strategic partners have incentives to take

actions that would negatively affect the firm.

e)Partnering lock-in risk:It's the risk that the choice of a spesific strategic partner locks the

firm into a relationship with negative consequences for the firm.

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f)Outside scope risk:It's the risk that alliance will create products or services outside the scope

of original agreement.

Operations objectives related risks:

a)Input supply risk:It's the risk that the strategic partner is unable or unwilling to supply key

commodities,raw materials,or component parts in a timely manner to meet the firm s regular

demand patterns.

b)Surge capacity risk:It's the risk that the strategic partner is unable or unwilling to supply key

commodities,raw materials or component parts in a timely manner to meet unusuallyhigh,unexpected demand.

c)Quality performance risk:It's the risk that the strategic partner is unable or unwilling to

supply key commodities,raw materials or component parts according to the quality and

reliability standards of the firm.

d)Cost/price renegotiation risk:It's the risk that the strategic partner will take advantage of its

position at a later date and seek unexpected increases in the price of key commodities,raw

materials or components.

e)Coordination risk:It's the risk that the firm and its strategic partner will fundamentally

misunderstand one another's needs due to complexity or uncertainty associated with the task

or difficulty of coordinating complex actions.

f)Financial viability risk:It's the risk that the strategic partner will experience financial distress

that limits its ability to meet the firm's consumption needs.

g)Contribution valuation risk:It's the risk that the firm's non-monetary contribution to the

partnership will be undervalued by the partner.

h)Financial commitment risk:It's the risk that entering into a strategic partnership may expose

the firm to credit risk.

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Reporting objectives related risks:

a)Verification and evaluation risk:It's the risk that the firm will be unable to verify,monitor or

evaluate its strategic partner's performance in an accurate or timely manner.

b)Misalignment of incentive risk:It's the risk that strategic partners have incentives to take

actions that would negatively affect the firm.

Compliance objectives related risks

Compliance and regulatory risk:It's the risk that the strategic partner's failure to comply with

customer requirements,firm policies or government laws and regulations may expose the firm

or its employees to sanctions.

Analyzing The Octopus Diagram Of The Firm

Defines an interesting phenomenon termed the Octopus Strategy where multidivision

companies from Japan, the United States and Europe are joining forces to create multiple

strategic alliances. The end result of this strategy is that two divisions of the multidivision

companies may have formed an alliance, while other divisions of the same organizations may

be in fierce competition with one another. Develops a model of the working of strategic

alliances based on the existing empirical evidence. Suggests some contributions that

government, industry and education should make for the success of alliances.13

3)OTHER ISSUES

Limitations Of Innovation13 Benefited from www.emeraldinsight.com

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Organizational innovation involves the creation or alteration of business structures, practices,

and models, and may therefore include process, marketing and business model innovation.

Process innovation involves the implementation of a new or significantly improved

production or delivery method.

Product innovation involves the introduction of a new good or service that is new or

substantially improved. This might include improvements in functional characteristics,

technical abilities, ease of use, or any other dimension.

Service innovation typically refers to service product innovation which might involve,

compared to goods product innovation or process innovation, relatively less technological

advance, being more interactive and information-intensive. Service innovation may also

involve novelty in the way in which services are produced, or in delivery of other aspects of

the service - including creative content in the case of entertainment and cultural services.

Kinetixs point of view to innovation is not only consist of product development, it

also includes these four types of innovations. They take up all these as a whole. Together with

implementing new technolojies to develope products, Kinetix is aimed to innovate faster,

effective and efficient service. They want to turn innovations into financial gains and money.

Because of this, Kinetix takes notice of organizational, process, product and service

innovations. Kinetixs hierarcy was vertical, but they thougth that this structure extends the

decision making process. Thats why they vary their organization structure and now their

hierarcy is horizontal.14

Product Development Process

14 Benefited from http://www.wikipedia.org

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New product development (NPD) is the term used to describe the complete process of

bringing a new product or service to market. There are two parallel paths involved in the NPD

process : one involves the idea generation, product design, and detail engineering ; the other

involves market research and marketing analysis. Companies typically see new product

development as the first stage in generating and commercializing new products within the

overall strategic process of product life cycle management used to maintain or grow their

market share.

While developing new product, Kinetix take into consideration technologic

deevlopments and customer demands. They aimed to analyze and adopt both of them to new

product. And also in this process, Kinetix make a point of the analyzes of competitors. They

are aware of that the well known brands; such as Nike, Adidas, Puma; have the control of the

market. These brands set fashion, new trends and styles. What Kinetix done is analyzing its

competitors new products and try to produce like them with lower price. With this strategy

Kinetix is on the way of being the best follower in Turkey. 15

How customer demand are integrated into innovation process

Kinetix give importance to customer demand in diverse processes such as; product

quality, price, service, advertisements. They direct their products, services, product

development and technoloji take into consideration these demands. Customers expect betterservice, better products and enhanced brand image from Kinetix. Kinetix focal point in

production is order. Integrating customer demands into innovation process is achieved with

order meetings which convenes twice a month. In the order meetings Kinetix presents their

collections to customers and send for orders. These meetings convene in Kinetixs showroom

which is designed according to customer expectations

15 Benefited from http://www.wikipedia.org

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PART C)

SUMMARY OF FINDINGS AND CONCLUSIONS

With the 850 selling point in country-wide Kinetix is a very well-known brand. is

selling shoes,textile and accessorize for women, men, children. But they have a limited budget

for R&D. Because of this they are a little bit lack of innovate. But with their limited budget

they are trying to do their best. They are not the market leader or trend setter. But they are

very good at analyzing world-wide brands innovations and this feature provides them to

produce with less cost and sell the products with lower price. So with this strategy they are

becoming a good follower. Kinetix give importance to customer demand in diverse processes

such as; product quality, price, service, advertisements. They direct their products, services,

product development and technoloji take into considerationthese demands. Customers expectbetter service, better products and enhanced brand image from Kinetix. Kinetixs point of

view to innovation is not only consist of product development, it also includes organizational,

process, product and service innovations.

Kinetixs hierarchy was vertical, but they thought that this structure extends the

decision making process. Thats why they vary their organization structure and now their

hierarchy is horizontal.

The companies which are not considered as corporates but considered as family firms

have sone memorized and stable habits that are hard to break and change.But in todays

business world most of these habits are obstacles on a companys way to achive its goals and

outcomes.So because change is the only the thing not changes even the old and family

companies like Kinetix should adapt to these continuous changes and developments in the

industry.To be able to do that company should create solutions in more than one way and

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Kinetix orientation report (in the attachment in cd)

http://www.wikipedia.org

http://www.ezinearticles.com

http://www.ipmall.info

http://www.wordpress.com

http://www.innovationbbl.blogspot.com

http://www.eirma.org

http://www.freedomscientific.com

http://www.sciencedirect.com/science

http://en.wikipedia.org/wiki/Innovation#Innovation_in_organizations

http://en.wikipedia.org/wiki/Quality_assurance

Documents

Innovation in Kinetix