The Subject of week 2
The service innovation process
Bretani identiefied early succes factors: Nature of the service is
Value of the service to the customer Such as:
- Service innovationess
- Quality of the service
- Adaptability
Bretani identiefied early succes factors: Service market characterstics are
- Service market fit
- Market attractiveness
- Market competitiveness
- Extent to which customers demand is satisfied
Bretani identiefied early succes factors: Project synergy is?
- The consistency with the firms technical, human and financial resources
- The fit with the current line of services and customer experience
Bretani identiefied early succes factors: Service innovation culture is?
- Teamwork
- Product champions
- Risk taking
Bretani identiefied early succes factors: NSD process is?
Systematicly and an formal NSD process. This is often the most important success factor
What is the stage gate model?
Structured model of the innovation process:
- Stages: that describe the process from idea to product
- Gates: that describe the go/no-go decisions between stages
What happens at each Go/no-go decision?
- Set of criteria that have to be met
- People get involved in the decision
- Decide to go to next stage, skip one or go back in the process
What are the two service innovation models?
1) Partial = Describes parts of service innovation model (vb: design= activities needed to create a service blueprint)
2) Translational models = based on product innovation model such as stage gate. Service firms do often not use all stages of the model.
Conclusion on the existing models of the service innovation process?
- Based on product innovation process models
- There is no generally accepted model of service innovation process
- Question then is how do they succesfully develop new services?
Service innovation decisions exist out of?
- Service process design
- Design of interaction with the customer
- Design of service delivery process
- Use of technology
- Degree of customer participation
- Service employee discretion
- Degree of standardisation
- Design of optional features
- Facility design
- Demand/capacity planning
Service innovation is often ad hoc: As innovation is not recognized
- Services are shaped through customer- service provider interaction
- Changes offered to one customer are not recognized as potentially new services for an other customer
- Knowledge gained by service personal is not shared
Service innovation is often ad hoc: Services can be easily copied
So service providers rely on quick responding to competitor innovation
Service innovation is often ad hoc: Service innovation process can be easily stopped
As most development costs are variable (labor)
Service innovation is often ad hoc: Service innovation is a process of trail and error
When an new service is launched it is improved through incremental improvements
Service innovation is often ad hoc: There is no hard path to follow
- No systematic stage gate process
- Development process is not often checked upon (sunk costs)
- Stages overlap
Service innovation is often ad hoc: communication about intangibility is hard
Because of intangibility communication about concepts is harder
Service innovation is an … process?
Is an Iteratief process, means repetitieve:
Idea generation > screening > commercial evaluation > idea generation > etc >
Development > testing > development > testing > launch > development > etc
Why do studies say it pays to invest in service innovation?
1) Formalizing the service process increases the chance on success. Not only for developing new services, but also to handle existing service portfolio (formilising process of when stop them for example).
2) Invest in the interaction with the customer. Service can be copied, execution is harder to copy.
3) Not only service provider has contact with customer but also the supplier often has, so they must know how to deal with them aswel to deliver consistant service.
What are radical service innovations?
Major innovations: New service for undifined market
Start-up business: New service in market with existing services
New service in market with existing market: self-scan in supermarket
What are incremental service innovations?
Service line extension: Lounge for first class check in Service improvement: Changing features of existing service Style change: Example = new layout store
how to Design excellent services?
- Identify and map customer job that you want to improve: Use customer job mapping, use service blueprint to map all interactions with customers and between employees and service systems
- Account for all parties influencing the customer experience: map all players involved, map levels of satisfaction across the customer journey
- Identify customer pain points and design solutions
What are the 4 point to ‘‘Job to be done’’?
(Bettencourt, 2010)
- Customers higher a service to get the job done. Customers are loyal to the job and select the solution that does that best.
- Customers seek solutions for accomplishing distinct steps in getting an entire job done -> Each step is an opportunitie for value creation
- Customers use outcomes to evaluate success in getting an job done. Customers use metrics to evaluate the effectiveness of alternative solutions
- Customers do have needs related on how they ‘‘consume’’ the service. For example the steps to obtain the service and how to receive its benefits.
What does Bitner et al. (2008) Service blueprint show us?
Serves as an flowchart that shows the relationship between:
- Physical evidence of the service
- Activities of the customer
- Activities of the contact personnel
- Activities of the backstage personal
- Support processes.
See sheet 30.
