NECTEC TALK     ... F ...Service Innovation                         .                     sasiporn.us@spu.ac.th
...   F   ...•   Service Innovation•   Key success factors•   Innovation life cycle•   Service Innovation Approach•   Meth...
Innovation• Innovation is the successful exploitation of new  ideas.• Success factors:  –   passion  –   opportunity  –   ...
Drivers to Innovation • Need to improve quality • Create new markets • Extend product range • Improve productivity • Reduc...
Types of Innovation              Product Innovation                the creation of a good that is either new, or          ...
G-D vs. S-DGoods-Dominant Concepts                         Service-Dominant Concepts                               Goods  ...
Innovation Process Life Cycle• Supply Pushed (Technology Pushed)• Demand Pulled (Market Pushed)  – integrates consumer nee...
Service Innovation Strategy Development Process                                                • Discover options         ...
Service Innovation Strategy Development Process   Step 1: Select Innovation Focus• Goals:  – Discover feasible and potenti...
Tool for Business Analysis
Tools for Problem Analysis                  Organize ideas and data, finding relationships of dataAnalyze causeand effect
Service Innovation Strategy Development Process                             • Discover options                            ...
Service Innovation Strategy Development Process  Step 2: Uncover Customer Needs           Approach               Examples ...
Customer Behavior Model           Source : http://jcmc.indiana.edu/vol9/issue2/giaglis.html
Service Innovation Strategy Development Process                             • Discover options                            ...
4.Develop Innovation Strategy• Holistic View  – to help identify overall service offerings• Service Blueprint  – to unders...
Holistic View of Offering
Service BlueprintMary Jo Bitner, Amy L. Ostrom, Felicia N. Morgan, “Service Blueprinting: A Practical Technique for Servic...
Improved Version of Service Blueprint1.   Physical Evidence2.   Customer Actions3.   Visible Staff Actions4.   Invisible S...
Failure of Innovation• Internal Causes  – Organizational Cultural:     •   Poor Leadership     •   Communication     •   N...
Failure of Innovation• External Causes  – Mismatch between price charged and value    benefit perceived by customer  – Not...
THANK YOU
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Nectec talk#68 Service-innovation_by_dr_sasiporn_usanavasin

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Nectec talk#68 Service-innovation_by_dr_sasiporn_usanavasin

  1. 1. NECTEC TALK ... F ...Service Innovation . sasiporn.us@spu.ac.th
  2. 2. ... F ...• Service Innovation• Key success factors• Innovation life cycle• Service Innovation Approach• Methodologies and Tools
  3. 3. Innovation• Innovation is the successful exploitation of new ideas.• Success factors: – passion – opportunity – good visions and creative ideas, – motivated and talented staffs, • Sponsor • Visionary leader • Talented technical staffs & Experts • Spokesmen – an instinctive understanding of what customers wants – budget
  4. 4. Drivers to Innovation • Need to improve quality • Create new markets • Extend product range • Improve productivity • Reduce labor/material cost • Reduce environmental damage • Replace products/services • Reduce energy consumption • Conform to regulations
  5. 5. Types of Innovation Product Innovation the creation of a good that is either new, or improved on previous goods of its kind. Service Process InnovationInnovation the implementation of a new or significantly improved production or delivery method (including significant changes in techniques, equipment and/or software). Paradigm Innovation changes in the underlying mental models which shape what an organization or business is about Position Innovation changes in the context in which the products/services are introduced www.humanitarianinnovation.org
  6. 6. G-D vs. S-DGoods-Dominant Concepts Service-Dominant Concepts Goods Service Products Experiences Feature/attribute Solution/Process Value-added Co-creation of value Price Value proposition (offering) Equilibrium systems Complex adaptive systems Supply Chain Value-creation network/constellation To Market Market with Product orientation Service-Dominant Logic (Consumer and relational) 6 The Service-Dominant Logic Mindset: Overview and Directions, Stephen L. Vargo, Shidler College of Business, University of Hawai’i at Manoa
  7. 7. Innovation Process Life Cycle• Supply Pushed (Technology Pushed)• Demand Pulled (Market Pushed) – integrates consumer needs in the innovation process
  8. 8. Service Innovation Strategy Development Process • Discover options • Identify target customers • Decide upon what job functions or processes to investigate • Listen to customer voice • Understand customer behavior • Measure importance and satisfaction • Define unique value proposition • Define service concept Service Innovation: How to Go from Customer Needs to Breakthrough Services Lance Bettencourt, McGraw-Hill, 2010
  9. 9. Service Innovation Strategy Development Process Step 1: Select Innovation Focus• Goals: – Discover feasible and potential options – Identify target customers or niche market – Decide upon what job functions or processes to investigate• Methodologies & Tools – Business analysis • SWOT – Problem analysis • Affinity Diagram, Fishbone Diagram, etc.
  10. 10. Tool for Business Analysis
  11. 11. Tools for Problem Analysis Organize ideas and data, finding relationships of dataAnalyze causeand effect
  12. 12. Service Innovation Strategy Development Process • Discover options • Identify target customers • Decide upon what job functions or processes to investigate • Listen to customer voice • Understand customer behavior • Measure importance and satisfaction • Define unique value proposition • Define service concept
  13. 13. Service Innovation Strategy Development Process Step 2: Uncover Customer Needs Approach Examples of Techniques & ToolsMarket survey Questionnaire InterviewBrainstorming Focus group, KJ MethodObservation Customer behaviors modelKnowledge/Experience Sharing Web 2.0, Social NetworkingBe your own customers
  14. 14. Customer Behavior Model Source : http://jcmc.indiana.edu/vol9/issue2/giaglis.html
  15. 15. Service Innovation Strategy Development Process • Discover options • Identify target customers • Decide upon what job functions or processes to investigate • Listen to customer voice • Understand customer behavior • Measure importance and satisfaction • Define unique value proposition • Define service concept
  16. 16. 4.Develop Innovation Strategy• Holistic View – to help identify overall service offerings• Service Blueprint – to understand service components and operation flow and to identify bottlenecks of the service systems• Improvement Metric – to help identifying problems and obtaining solutions that will drive to service innovation
  17. 17. Holistic View of Offering
  18. 18. Service BlueprintMary Jo Bitner, Amy L. Ostrom, Felicia N. Morgan, “Service Blueprinting: A Practical Technique for Service Innovation”, Centerfor Services Leadership, Arizona State University http://www.hygge.ie/service-design-thinking/what-exactly-is-service-design/
  19. 19. Improved Version of Service Blueprint1. Physical Evidence2. Customer Actions3. Visible Staff Actions4. Invisible Staff Actions5. Policy and Procedure6. Internal Support System Support Processes layer is decomposed7. External Support System into 4 layers8. Required Resource
  20. 20. Failure of Innovation• Internal Causes – Organizational Cultural: • Poor Leadership • Communication • No motivation • Lack of knowledge – Process: • Poor definition of goals • Poor alignment of actions with goals • Poor management • R&D efforts are not guided by market research or customer requirements • R&D efforts not in synch with manufacturing skill & capabilities
  21. 21. Failure of Innovation• External Causes – Mismatch between price charged and value benefit perceived by customer – Not enough value addition perceived by customer – Competitor brings in disruptive technology /innovation – Government regulations undergo change adversely affecting innovation – Market not as yet ready to accept the innovation
  22. 22. THANK YOU

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