There are many ways to develop new products or boost the profitability of existing ones using the internet. The principles for online innovation are, with several additions, similar to those for offline product development.

The internet and customer-focused decisions

One of the most significant business benefits of the internet is the ability to create new relationships with customers. This includes the ability to capture, store and disseminate detailed information about customers and their preferences, thus allowing swift and practical decisions on everything from new product development and pricing to stock levels and future marketing plans. It enables faster, more reliable transactions, improving efficiency and reducing costs.

The internet also enables different scenarios to be tested, thus enhancing the accuracy of decisions. Another advantage is the ability to provide special-offer promotions offering significant value. As well as facilitating the promotion, the internet also enables customer data to be analysed and used to inform future decisions.