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Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
Service / Product Innovation
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Service / Product Innovation

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Managing the solution specific investments in innovation …

Managing the solution specific investments in innovation

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  • 1. Service / Product Innovation
    Managing the solution specific investments in innovation
    Anand Subramaniam
  • 2. 2
    “I once knew a chap who had a system of just hanging the baby on the clothes line to dry and he was greatly admired by his fellow citizens for having discovered a wonderful innovation on changing a diaper.”
    - Damon Runyon
  • 3. 3
    Highlights
    Service Innovation
    Product Innovation
    New Business Model Innovation
    Project Portfolio Management
  • 4. New Service Development (NSD)
  • 5. Innovation - New Service Development
    Involves implementation & improvement of information technology
    Solution specific investments in innovation
    More on investments in human capital (skills, knowledge) & org. changes than on tangible innovation
    SMEs produce more innovation but at lower rates than large service companies & are less frequent adopters
    Majority of service providers are SMEs, which may face particular impediments in innovation
    Service Innovation
    Heavy use of trademark protection & brand loyalty
    Traditional view that services are less innovative than manufacturing & tend not to have R & D
    Service firms often implement patented technologies & so transactions costs matter
    Difficult to measure innovation inputs and outputs
    5
  • 6. Traditional
    Small & weak technologically, with un-demanding customers & limited managerial skills
    System Firms
    Large & sophisticated: (banks, retailers,
    insurers, airlines) with heavy dependence on technology & excellent managerial skills
    Knowledge Intensive Firms
    All sizes (legal & accounting,
    engineering & design, advertising, market research & management
    Consultancy) with heavy dependence on professional employees & close
    connections to customers
    Innovation - Service Firms Types
  • 7. Standardisation of the Service
    Mix of Physical Goods and Intangible Services
    Customer Contact (high / low level) in Delivering the Service
    New Services – Design Focus
  • 8. Service Innovation - Levels
    8
    Radical
    • Major Innovation: new service driven by information and computer based technology
    • 9. Start-up Business: new service for existing market
    • 10. New Services for the Market Presently Served: new services to customers of an organisation
    Incremental
    • Service Line Extensions: augmentation of existing service line (e.g. new menu items)
    • 11. Service Improvements: changes in features of currently offered service
    • 12. Style Changes: modest visible changes in appearances
  • Service Innovation - Elements
    Capture and use information
    anticipate customer needs
    market and competitor trends
    analyse own performance
    Management / People Skills
    respond to opportunities, threats
    exceed customer expectations
    Quality framework
    Standards
    Business planning, processes
    9
    Process
    Offering
    Delivery
    Business model
  • 13. Service Innovation Charter
    10
    Problem Statement : What service related innovation policy seeks to achieve?
    Outcomes :
    What outcomes do the service users / stakeholders seek to achieve from the service policy program?
    Goal : What is the aim / impact of the service policy program ?
    Rationale :
    Why undertake this program & what results are expected?
    Outputs
    Verifiable products or services related to innovation policy
    Resources
    Money, Materials, Methods, Measures,
    Machines, Manpower
    Tasks
    Tasks and activities under-taken to achieve the desire results / targets
    Assumptions:
    What factors are necessary and are in place?
    External Factors : What external factors influence the service program policy results / outcomes?
  • 14. Service Innovation – Interrelationship
    11
    Business Models
    Substantial change how revenues and profits earned (business model); often accompanied by organisational changes / restructure and extend the enterprise
    Process / Systems / Operations
    Changes in how information is exchanged between customers & service providers and improve effectiveness and efficiency of core functional areas
    Products / Services / Markets
    Introduction of entirely new services – customer focused / go-to market strategies
    All three are interrelated and is an iterative process
  • 15. Integrated Service Innovation System
    12
    Capacity
    & Manpower
    Planning,
    Training
    Employees &
    Stockholders
    Value
    Value
    Value
    Community
    Service
    Provider
    Customer
    Value
    Facility
    Location
    & Design
    Service
    Experience
    Partners
    Governance
    Social
    Networking
    Competition
    Competitive
    Strategy
    Customer
    Flow &
    Service
    Delivery
    Service
    Concept
    Realised
    Market
    Segmentation
    Society
    Operating
    Strategy
    Society
  • 16. New Services - Stage-gate Process
    13
    Customers
    Generate & assemble ideas
    Immerse with Customers
    Focus your energies
    Gate
    Strategy, Organisation, Culture fit
    Gate
    Design service solution
    Gate
    Evaluate / Feedback into NSD
    Market Test / Launch
    Gate
    Gate
  • 17. Knowledge Protection Methods
    14
  • 18. New Product Development (NPD)
  • 19. Autonomous design and development teams
    Improved time to market and cost
    Simultaneous (concurrent) engineering
    Continuous interaction between product / service design and product process
    Computer-aided design / computer-aided manufacturing (CAD / CAM)
    Generate many views of parts, rotate images, magnify views, and check for interference between parts
    New Product – Design Focus
  • 20. New Product - Roadmap
    Technical & economic feasibility studies
    Prototype design (form, fit, function)
    Performance testing / redesign of prototype
    Market surveys, sensing & economic evaluation of the prototype
    Design of production model (product evolution)
    Market / performance / process testing & economic evaluation of production model
    Continuous modification of production model (adapt to changes in market, IT)
  • 21. New Product – Stage Gate Process
    18
  • 22. New Product - Inter-disciplinary
    19
  • 23. New Business Model Innovation
  • 24. Innovation - Business Model Process
    Formulate value proposition, i.e. the value delivered to the customer by the product based on specific technology
    Identify marketsegment, ie. users to whom the technology brings value and performs the job to be done
    Define structure of the value chain, required for the product creation and distribution
    Specify the mechanism of profit creation and evaluate product coststructure and target margin
    Describe the company position in the value network that connects suppliers and customers, including identification of potential alternative producers and competitors
    Formulate competitive strategy enabling to the innovative company to gain and keep competitive advantage
  • 25. Innovation – Technology Significance
    Using extensive use of technology where it becomes difficult to replicate and can often be protected (patented)
    First mover advantage
    High level of scalability
    Technology
    High level of initial risk which can be translated into high levels of return
    Barriers to entry
    Adding value for to customers
    22
  • 26. Business Model & Technological Innovation
    23
    Disruptive
    Sustain
    • Improve on current performance
    • 27. Enhance market share for existing players
    • 28. Fill an existing unmet demand
    • 29. Offer significant improvement over current solutions
    • 30. Foster new venture creation
  • New Product / Services – Project Portfolio Management
  • 31. New Product / Service - Portfolio Goals
    25
    Maximising the portfolio value
    Strategic alignment
    Balance
    • Long-term profitability
    • 32. Return on Investment
    • 33. probability of success
    Portfolio is strategically aligned and reflects the business’s strategy
    • Long-term projects vs. short, fast ones
    • 34. High risk projects with high potential vs. lower-risk sure bets
    • 35. Focus on different market segments / technologies
  • Lack of Project Portfolio…
    26
  • 36. 27
    “Innovation is hard to schedule.”
    - Dan Fylstra
  • 37. 28
    Good Luck
    http://www.linkedin.com/in/anandsubramaniam

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