Designing Innovative Experiences

SERVICE INNOVATION Designing Innovative Experiences Alexis Goncalves Innovation Insight Network 2009 ASQ World Conference on Quality & Improvement Session T35 Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 1

LEARNING  Discuss Innovation Thinking OBJECTIVES  Discuss Experience Thinking  Describe an Innovation Process  Introduce some Innovation Tools  Share some practical examples Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 2

INNOVATION THINKING Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 3

INNOVATION THINKING INNOVATION GOES BEYOND… > A CREATIVE IDEA > AN INVENTION when you have changed INNOVATION IS... somebody’s HABIT PATTERNS Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 4

EXPERIENCE THINKING Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 5

EXPERIENCE Account Manager TV ads Website THINKING IVR Phone service EXPERIENCE IS STRUCTURALLY The welcome letter DETERMINISTIC The physical store every company delivers the customer THE CUSTOMER WORLD experience that is organized to deliver. Direct mailing In-store service EXPERIENCE IS NOT JUST The statements PRACTICAL it is also emotional, Channel The buying process and sometimes even Cashiers irrational. Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 6

EXPERIENCE The sum total of all the interactions THINKING v that a customer has with a business in the course of their daily life, as compared with their expectations. v These interactions will either strengthen or weaken the future relationship and that customer’s desire to return, spend more and recommend. IT IS NOT JUST v It is a blend of an organization’s PRACTICAL physical performance, the senses What is Customer stimulated and emotions evoked. Experience? Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 7

THE STRUCTURE OF CUSTOMER EXPERIENCE THE CUSTOMER WORLD Expectations & Needs Day To Day Experiences Retail store Channel Applications Statements Credit card Direct Mail Acct. Mgr. Bilboards Website TV Ads E-Mail IVR Technology & Infrastructure Organizational Culture THE BUSINESS WORLD Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 8

INNOVATION PROCESS Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 9

Visioning Discovering Analyzing Synthesizing Realizing INNOVATION LIFE CYCLE Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 10

Visioning Discovering Analyzing Synthesizing Realizing 4 1 Business 5 6 7 8 Declare 2 Develop Explore Make Stage Innovation People 3 Insights Concepts Roadmaps Experiences Intent Technology WORKING PROCESS Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 11

Visioning Discovering Analyzing Synthesizing Realizing 4 1 Business 5 6 7 8 Declare 2 Develop Explore Make Stage Innovation People 3 Insights Concepts Roadmaps Experiences Intent Technology PROCESS IS NON-LINEAR Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 12

Visioning Discovering Analyzing Synthesizing Realizing 4 1 Business 5 6 7 8 Declare 2 Develop Explore Make Stage Innovation People 3 Insights Concepts Roadmaps Experiences Intent Technology Tasks Tasks Tasks Tasks Tasks Sense trends Discover latent needs Analyze data Develop and evaluate concepts Make prototypes Develop foresight Discover technologies Find patterns Create platforms Create pilots Declare intent Discover white spaces Develop insights Make briefs and roadmaps Plan launch TASKS Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 13

Visioning Discovering Analyzing Synthesizing Realizing 4 1 Business 5 6 7 8 Declare 2 Develop Explore Make Stage Innovation People 3 Insights Concepts Roadmaps Experiences Intent Technology Tasks Tasks Tasks Tasks Tasks Sense trends Discover latent needs Analyze data Develop and evaluate concepts Make prototypes Develop foresight Discover technologies Find patterns Create platforms Create pilots Declare intent Discover white spaces Develop insights Make briefs and roadmaps Plan launch Tools Tools Tools Tools Tools Trend Map Ethnographic Studies Activity Structuring Bodystorming / Brainstorming Behavioral Prototype Scenario Plan Shadowing Experience Map Unfocused Group Concept Prototype Preferred Future Photo-Elicitation Contextual Analysis Sensualization Blueprint Diagnostic System Technology Mining Extreme Users Storyboarding Scenario Testing Concept Space Technology Scouting Perverted Users Second Life Mock-ups Simulation Bibliometrics Innovation Canvas Think Inside the Box Platform Plan Development Plan Insight Matrix Business Case Partnership Net TOOLS Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 14

Visioning Discovering Analyzing Synthesizing Realizing 4 1 Business 5 6 7 8 Declare 2 Develop Explore Make Stage Innovation People 3 Insights Concepts Roadmaps Experiences Intent Technology Tasks Tasks Tasks Tasks Tasks Sense trends Discover latent needs Analyze data Develop and evaluate concepts Make prototypes Develop foresight Discover technologies Find patterns Create platforms Create pilots Declare intent Discover white spaces Develop insights Make briefs and roadmaps Plan launch Tools Tools Tools Tools Tools Trend Map Ethnographic Studies Activity Structuring Bodystorming / Brainstorming Behavioral Prototype Scenario Plan Shadowing Experience Map Unfocused Group Concept Prototype Preferred Future Photo-Elicitation Contextual Analysis Sensualization Blueprint Diagnostic System Technology Mining Extreme Users Storyboarding Scenario Testing Concept Space Technology Scouting Perverted Users Second Life Mock-ups Simulation Bibliometrics Innovation Canvas Think Inside the Box Platform Plan Development Plan Insight Matrix Business Case Partnership Net Add tools… tailor it to projects. Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 15

Visioning Discovering Analyzing Synthesizing Realizing 4 1 Business 5 6 7 8 Declare 2 Develop Explore Make Stage Innovation People 3 Insights Concepts Roadmaps Experiences Intent Technology Tasks Tasks Tasks Tasks Tasks Sense trends Discover latent needs Analyze data Develop and evaluate concepts Make prototypes Develop foresight Discover technologies Find patterns Create platforms Create pilots 1 Declare intent Discover white spaces Develop insights Make briefs and roadmaps Plan launch Tools Tools Tools Tools Tools Trend Map Ethnographic Studies Activity Structuring Bodystorming / Brainstorming Behavioral Prototype Scenario Plan Shadowing 5 Experience MapUnfocused Group Concept Prototype Preferred Future 2 Photo-Elicitation Contextual Analysis Sensualization Blueprint Diagnostic System Technology Mining Extreme Users Storyboarding Scenario Testing Concept Space 3 Technology ScoutingPerverted Users Second Life Mock-ups 6 Simulation Bibliometrics Think Inside the Box Platform Plan Development Plan 4 Innovation CanvasInsight Matrix Business Case Partnership Net PRACTICAL EXAMPLES Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 16

1 Declare intent Hospitality Industry 2 Photo-Elicitation 3 Technology Scouting 4 Innovation Canvas 5 Experience Map 6 Second Life Mock-ups Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 17

1 Declare intent 2 Photo-Elicitation 1 3 Technology Scouting 4 Innovation Canvas 5 Experience Map 6 Second Life Mock-ups Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 18

1 Declare intent Construct a clear Innovation Intent 2 Photo-Elicitation 3 Technology Scouting 4 Innovation Canvas 5 Experience Map 6 Second Life Mock-ups “We will put a man on the moon and bring him back again before the end of the decade.” JFK Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 19

1 Declare intent The Ritz-Carlton Hotels 2 Photo-Elicitation 3 Technology Scouting 4 Innovation Canvas 5 Experience Map 6 Second Life Mock-ups “We need to change our brand from elegant formality to one of more relevant and relaxed luxury.” Simon Cooper President & COO Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 20

1 Declare intent Ginger Hotels (Tata Group) 2 Photo-Elicitation 3 Technology Scouting 4 Innovation Canvas 5 Experience Map 6 Second Life Mock-ups “I want to create a fundamentally new category of Hotels… it will have the same features as a Marriott but cost only $20.00 per night.” Ratan Tata Chairman Tata Group Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 21

1 Declare intent Summary 2 Photo-Elicitation 3 Technology Scouting An innovation intent clarifies: 4 Innovation Canvas An arena of ascending importance 5 Experience Map – not a slogan or ad campaign. 6 Second Life Mock-ups Valuable stretches we don’t know how to do today. Base idea: Characterize the next source of industry focus, stretch, and value Senior executives need to create a point of view and have skin in the game. Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 22

1 Declare intent Content Analysis of Images 2 Photo-Elicitation DESIGN EQUIPMENT 3 Technology Scouting 4 Innovation Canvas 5 Experience Map 6 Second Life Mock-ups SETTING AMENITIES SERVICE Distribute CAMERAS to Guests along with a set of GUIDELINES for taking pictures. Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 24

1 Declare intent Quality of Experience 2 Photo-Elicitation 3 Technology Scouting 4 Innovation Canvas 5 Experience Map 6 Second Life Mock-ups “Food tray in the hall left unattended and this gives a negative impression and represents a lower quality of service”. Hotel Guest Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 25

1 Declare intent Evidence of Thoughtfulness 2 Photo-Elicitation 3 Technology Scouting 4 Innovation Canvas 5 Experience Map 6 Second Life Mock-ups “The staff took time to fold the toilet paper; the attention to detail in the bathroom met my needs”. Hotel Guest Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 26

1 Declare intent Summary 2 Photo-Elicitation 3 Technology Scouting Emotions Metaphor elicitation 4 Innovation Canvas ARCHETYPING 5 Experience Map SELF REPORT OBSERVATIONAL 6 Second Life Mock-ups METHODS METHODS Surveys PEOPLE Ethnographic studies Focus Groups Photo-elicitation Intercepts Shadowing Lead User Deep hanging out Interview Visual diaries Video ethnographies SEGMENTATION Customer Labs Demographics Psychographics Use Observational Methods to Technographics discover people’s latent and Personas, Lifestyle unarticulated needs. Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 27

1 Declare intent Surface Computer Technology 2 Photo-Elicitation 3 Technology Scouting 4 Innovation Canvas 5 Experience Map 6 Second Life Mock-ups Hotel Lobby Experience: a virtual concierge for finding local restaurants, bars, entertainment, shopping and other services; a digital music jukebox; and a directory with photos and info. Sheraton Hotels and Microsoft, 2008 Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 29

1 Declare intent Tray Tracking Technology 2 Photo-Elicitation 3 Technology Scouting 4 Innovation Canvas 5 Experience Map 6 Second Life Mock-ups The Tray Tracker System detects food trays in hotel corridors and alerts staff to their location for prompt pick-up. Axxess Industries, Inc. 2008 Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 30

1 Declare intent NFC + RFID Technologies 2 Photo-Elicitation 3 Technology Scouting 4 Innovation Canvas 5 Experience Map 6 Second Life Mock-ups Guests make an electronic reservation and receive a SMS on their cell phone with room number and secure electronic key, avoiding check-in lines by going directly to their hotel room. Ginger Hotels, IBM, and Vingard 2008 Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 31

1 Declare intent Summary 2 Photo-Elicitation 3 Technology Scouting Look for proven technologies 4 Innovation Canvas Working prototypes Evidence of consumer interest 5 Experience Map Determine the areas to look for 6 Second Life Mock-ups Produce a Top-10 consumer needs list Create Technology Briefs What are the problems to solve Screen & Evaluate Ideas Log ideas into “Eureka Catalog” Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 32

1 Declare intent Find the White Space 2 Photo-Elicitation 3 Technology Scouting 4 Innovation Canvas 5 Experience Map 6 Second Life Mock-ups Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 34

The Innovation Canvas: 10 types of Innovation Finance Process. Offering Delivery Business Networking Enabling Core Product Product Service Channel Brand Customer process process performance system experience model How the Core enterprise How you connect processes Extended makes your offerings to related to system that money your customers core surrounds competencies an offering How you Non-core service processes Basic your How you express that support features, customers your offering’s the business performance, benefit to customers Enterprise and structure and functionality value chain How you create an overall experience for customers Note: adapted from “The Ten Types of Innovation”, by Larry Keeley, Doblin Inc. 1999. Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 35

Rental car industry: stuck in feature warfare Most competitive activity in the rental car industry is focused here Non-stop activity rapid pick-up, rapid return Frequent activity availability, cell phones, models Never-Lost Moderate activity web-based fleet Some activity travel agent optimization vouchers modeling travel business airport agents travelers shuttle bus Minimal / none Business Networking Enablin Core Product Product Service Channel Brand Customer g process performance system experience model process Finance Process. Offering Delivery Note: adapted from the TEKES Report, by Jeneanne Rae, Peer Insight 2007. Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 36

Rental car industry: Enterprise breaks out of the pack… • Now largest ($6.9b vs. $4.9b for Hertz, $2.5b for Avis) • Targets the occasional renter • Uses the insurance company channel • Brings the car to the renter; avoids airport cost structure Non-stop activity rapid pick-up, occasional brings car rapid return insurers renters to you Frequent activity charge availability, cell phones, insurers models Never-Lost Moderate activity web-based fleet Some activity travel agent optimization vouchers modeling travel business airport agents travelers shuttle bus Minimal / none Business Networking Enablin Core Product Product Service Channel Brand Customer g process performance system experience model process Finance Process. Offering Delivery Note: adapted from the TEKES Report, by Jeneanne Rae, Peer Insight 2007. Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 37

1 Declare intent Summary 2 Photo-Elicitation 3 Technology Scouting Challenge Projects 4 Innovation Canvas Add dimensions of experience and better business models 5 Experience Map Use the ones that matter most 6 Second Life Mock-ups Ensure you have a shared understanding of which dimensions you should concentrate Make a Splash Use enough of them to make a splash (3 or 4 fields, changed at once, are disruptive) Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 38

1 Declare intent Sample Experience Map 2 Photo-Elicitation 3 Technology Scouting 4 Innovation Canvas 5 Experience Map 6 Second Life Mock-ups Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 40

1 Declare intent Summary 2 Photo-Elicitation 3 Technology Scouting A. Physical Evidence 4 Innovation Canvas 5 Experience Map C. Customer Actions 6 Second Life Mock-ups E. Onstage Contact Employee Actions G. Backstage Contact Employee Actions I. Support Processes Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 41

1 Declare intent Exploring Concepts 2 Photo-Elicitation 3 Technology Scouting 4 Innovation Canvas 5 Experience Map 6 Second Life Mock-ups For Starwood, opening aloft in Second Life is a way to test-market the hotel's design and rapidly prototype the evolving concept. Starwood Hotels and Linden Lab, 2006 Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 43

1 Declare intent Summary 2 Photo-Elicitation 3 Technology Scouting Verify your Target Market 4 Innovation Canvas Determine if your target market is in the virtual world 5 Experience Map Conduct Qualitative Research 6 Second Life Mock-ups Use real avatars to test your virtual world concept Select your Virtual World Buy an island or a plot on the mainland? Create a tribe or join an existing one? Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 44

LEARNING  Discuss Innovation Thinking OBJECTIVES  Discuss Experience Thinking  Describe an Innovation Process  Introduce some Innovation Tools  Share some practical examples Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 45

Q&A Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 46

Visit my Website Book “Innovation Hardwired” http://innovationinsight.net/ AMAZON Books http://www.amazon.com REFERENCIAS Join my Network http://www.linkedin.com/in/goncalves Skype Me alexis_goncalves Innovation in Services . Alexis Goncalves . Innovation Insight Network . ASQ WCQI Conference . May 18-20 2009 . Minneapolis, MN 47

Designing Innovative Experiences

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