Next Generation Service Innovation Workshop - Singapore - 23 August 2013


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As services continue to contribute more to the global economy and new propositions emerge daily, innovation in services is under greater focus. This is the material for a one day exec workshop looking at next generation service innovation covering the context, a number of leading case studies and also approaches for rethinking the service innovation experience to enhance value and customer impact. Drawn from a combination of the ongoing Growth Champions and Innovation Leaders analysis, it first looks at the core enablers of change for service innovation today - namely co-creation, web 2.0, new business models and new value shifts. Next it looks at nine established service innovation successes that have been changing perceptions in recent years - Inditex (Zara) fast fashion, Rolls-Royce TotalCare, Nike ID, Amazon, Virgin Atlantic, Airtel, Starwood Hotels, Google and Live Nation.

Then it moves on to explore eight emerging / accelerating service innovation experiences that are having impact: Zipcar, Naranaya Hrundayalaya, M-pesa, AA Drivesafe, Citizinvestor, Zopa, Motif Investing and Qcue.

The afternoon section looks at how companies can use these case studies to understand which elements of next generation service innovation could have impact on their sector and relevance for their business and then provides an overview of four approaches to help think of new service innovation models - Parallel Views, Value Innovation, Lean Thinking and Destroy your own business.

Designed to give companies an immersive experience the workshop uses this material in a number of different presentation formats including cards and other interactive elements. The Singapore event is the first of several to share this material and has been developed in collaboration with Training Vision and the WDA of the Singapore government.

Published in: Business, Technology

Next Generation Service Innovation Workshop - Singapore - 23 August 2013

  1. 1.          
  2. 2.           Today’s  workshop  is  designed  to  stretch  thinking   using  specific  insights  as  s9mulus  to  change  views   Morning   A=ernoon   S9mulate   Priori9ze   Challenge   Focus  and  Next  Steps   Clear  Outputs  Informed  Inputs   External     S9mulus   Reflect  &   Review  
  3. 3.           During  the  day  we  will  cover  four  key  areas  and   discuss  a  number  of  service  innova9on  models   1.  Context  for  Service  Innova2on:   §  History,  leading  examples  and  evolving  framework  of  progress   2.  Case  Studies  :   §  Examples  of  successful  service  innova9on  to  discuss  and  explore   3.  Business  Impact:   §  Discussion  of  which  examples  have  greatest  resonance  and  impact   4.  Tools  to  Rethink  Service  Innova2on:   §  Four  approaches  for  iden9fy  game-­‐changing  service  concepts    
  4. 4.           These  four  phases  of  learning  are  used  during  the  day   to  build  up  knowledge,  insight  and  applica9on   Morning   A=ernoon   S9mulate   Priori9ze   Challenge   Focus  and  Next  Steps   Clear  Outputs  Informed  Inputs   External     S9mulus   Reflect  &   Review   1:  Context   2:  Case  Studies   3:  Business  Impact   4:  Tools  
  6. 6.           The  first  session  sets  the  scene  for  service  innova9on,   its  scope,  its  development  and  its  future  poten9al   Recogni9on  of   Service   Innova9on   •  Inclusion  of  SI  in  R&D   •  Three  Key  Areas:   •  New  service   development   •  Improved  service   processes   •  Innova9on  in  service   firms   Different   Dimensions   •  The  Service  Concept   •  The  Client  Interface   •  The  Delivery  System   •  Technology  Op9ons   •  Service  Dominant  Logic   Next  Genera9on   Service   Innova9on   •  Co-­‐crea9on   •  Web  2.0  enabled   •  New  Business  Models   •  New  Value  Shi=s   Core  Service  Innova9on  Focus  is  on  “doing  be*er  things  and  doing  things  be*er”  
  7. 7.           Service  innova9on  as  a  specific  focus  has  now  been   on  the  scene  in  different  views  for  over  twenty  years   Three  types  of  service  innova2on:  Ian  Miles    -­‐  Univ.  of  Manchester  (1993)   §  New  service  development   §  New  or  improved  service  products  –  Axel  Johne  and  Chris  Storey  etc   §  Improved  service  processes   §  New  or  improved  ways  of  designing  or  delivering  services   §  Innova2on  in  service  firms   §  Organisa9onal  innova9on  -­‐  processes  and  management  of  innova9on   Key  components  of  service  innova2on:  TEKES     §  Replicable  elements   §  Benefit  to  producer  and  customer   §  Changes  to  customer  interface,  distribu9on,  forms  of  opera9on  etc.  
  8. 8.           In  recent  years  several  others  in  have  sought  to   classify  the  key  dimensions  of  service  innova9on     Four  Dimensions  of  Service  Innova2on:  Den  Hertog  (2007)   §  The  Service  Concept    e.g.  new  value  proposi9on,  new  retail  format   §  The  Client  Interface    e.g.  par9cipa9on  of  customers,  changes  in  roles   §  The  Delivery  System   e.g.  linkage  between  provider  and  customer,  job  roles   §  Technology  Op2ons    e.g.  more  effec9ve  informa9on  processing,  smart  communica9ons     Others  views  to  note:  Henry  Chesbrough,  Tony  Ulwick.     Service  Innova9on  Focus  is  on  “doing  be*er  things  and  doing  things  be*er”  
  9. 9.           Service  Dominant  Logic  is  a  good  way  of  thinking   about  the  change  adopted  by  a  some  organisa9ons   Goods  Dominant  Logic   Service  Dominant  Logic   Focus   Goods   Services   Experience   Tangible   Intangible   Resources   Operand   Operant   Informa9on   Asymmetric   Symmetric   Dialogue   Propaganda   Conversa9on   Value  Crea9on   Value  Added   Value  Proposi9on   Contracts   Transac9onal   Rela9onal   Incen9ve   Profit  Maximisa9on   Financial  Feedback   Leading  Examples:  Nike,  Apple,  IBM,  Xerox,  GE,  MasterCard,  Cargill,  Starbucks       Source:  Lusch  R.  F.,  Vargo  S.  L.  and  Malter  A.J.,  Taking  a  Leadership  Role  in  Global  Marke9ng  Management,  Organiza9onal  Dynamics,  Vol.  35,  No  3,  pp.  264-­‐278,  2006  
  10. 10.           Over  the  past  years,  the  discipline  of  service  design   and  innova9on  has  evolved  into  the  mainstream     Different  specialist  agencies  propose  their  own  views  of  the  service  design  process                         Source:  LiveWork  
  11. 11.           Varied  models  also  exist  for  the  overall  approach  to   service  innova9on  development  and  thinking       Many  look  at  key  components:   §  Process   §  Organisa9on   §  Features  of  Product   §  Nature  of  Product   §  Delivery  of  Product   §  Regula9on   §  Marke9ng   §  Role  of  Consumer   Big  Focus  on  “Customers  in  context”     Example  Source:  Engine  
  12. 12.           The  importance  of  crea9ng,  defining  and  delivering   “great  customer  experiences”  has  become  key   Great  Customer  Experiences:   §  Strongly  reflect  the  customer’s  iden9ty   §  Sa9sfy  our  higher  objec9ves   §  Leave  nothing  to  chance   §  Set  and  meet  expecta9ons   §  Are  effortless   §  Are  stress  free   §  Indulge  the  senses   §  Are  socially  engaging   §  Put  the  customer  in  control   §  Consider  the  emo9ons   Source:  Watkinson,  M.,  The  Ten  Principles  Behind  Great  Customer  Experiences,  FT  /  Pearson,  2013  
  13. 13.           We  can  now  clearly  see  the  emergence  of  a  new   phase  of  ‘next  genera9on’  service  innova9on   •  Developed  in  closer  partnership  with  others  especially  including  customers   Co-­‐crea2on   •  Take  advantage  of  interac9vity,  social  networks  and  shi=  towards  seman9c  web   Web  2.0   •  Adopt  and  adapt  new  mechanisms  for  tangible  and  intangible  value  crea9on   New  Business  Models   •  Underpinned  by  changes  in  how  people  and  organiza9ons  wish  to  share  value   New  Value  ShiYs   The  emerging  successes  are  based  on  four  key  themes:  
  14. 14.           Successful  service  innova9on  only  occurs  when  four   key  elements  are  all  present,  aligned  and  balanced   Successful   Service   Innova2on   Unique   Value   Proposi2on   Improved   Delivery   Approach   Growing   Emerging   Trend   Enhanced   Customer   Experience  
  15. 15.           Each  of  these  elements  are  sources  of  differen9a9on   that  collec9vely  bring  together  the  winning  formula   Successful   Service   Innova2on   Unique   Value   Proposi2on   Improved   Delivery   Approach   Growing   Emerging   Trend   Enhanced   Customer   Experience   Unique  Value  Proposi2on:   •  Delivers  customers  clear  value   •  Provides  a  compelling  story   •  Can  be  delivered  profitably     Improved  Delivery  Approach:   •  Does  things  beoer   •  More  efficient  than  exis9ng   •  Highly  effec9ve  plaqorm   Enhanced  Customer  Experience:   •  Improves  customer’s  life   •  Simple  &  engaging  touch-­‐points   •  Transparent  customer  journey   Growing  Emerging  Trend:   •  Taps  into  evident  shi=  in  market   •  Sustainable  growing  issue   •  Global  /  regional  relevance  
  16. 16.           Ul9mately,  successful  service  innova9on  changes   expecta9ons  of  what  can  be  repeatedly  delivered   Service  Innova9on  Focus  is  on  “doing  be*er  things  and  doing  things  be*er”  
  18. 18.           9  ini9al  case  studies  provide  a  wide  range  of  different   s9mulus  around  successful  service  innova9on  today   §  Efficiently  delivering  an  ever  changing  porqolio   §  Reconfiguring  a  product  into  a  service   §  Mass  personalisa9on  at  scale   §  Using  data  to  get  close  to  customers   §  Redefining  expecta9ons  of  travel   §  Scaling  without  constraints   §  Delivering  a  wide  and  dis9nc9ve  porqolio  of  needs   §  Extending  global  adver9sing  reach   §  Repackaging  the  concert  value  proposi9on  
  19. 19.           8  other  case  studies  highlight  some  next  genera9on   service  models  that  are  now  emerging  and  growing   §  Maximizing  fixed  asset  u9liza9on   §  Reinven9ng  the  healthcare  business  model   §  Providing  banking  access  at  the  booom  of  the  pyramid   §  Pay  as  you  drive  insurance   §  Crowd  funding  public  services   §  Peer-­‐to-­‐peer  finance   §  Co-­‐created  investment  funds   §  Real-­‐9me  dynamic  pricing  of  9ckets  
  20. 20.           Inditex,  the  worlds  best  retailer,  supports  high  levels   of  autonomy,  fast  decisions  and  con9nuous  change  
  21. 21.           For  Inditex,  rapid,  con9nuous  change  of  merchandise   results  in  high  customer  demand  and  very  low  waste   4  x  Average   store  visits   per  year   (Innova2on)   Fast   Fashion   (Proposi2on)   Global   48hr   Logis2cs   (Delivery)   Curated   Choice   (Trend)   Always   Something   New   (Experience)  
  22. 22.           Rolls-­‐Royce  has  reconfigured  a  high  tech  product  and   support  rela9onship  into  a  long  term  service  contract  
  23. 23.           Rolls-­‐Royce’s  ‘power  by  the  hour’  Total  Care  service   has  grown  to  represent  over  70%  of  group  revenues   Redefined   Rela2onship   (Innova2on)   Pay  only   for  use   (Proposi2on)   24/7   Remote   Monitoring   (Delivery)   Access  not   Ownership   (Trend)   Guaranteed   Availability   (Experience)  
  24. 24.           Nike  has  used  Nike  ID  as  a  plaqorm  for  giving   customers  apparent  personalisa9on  at  scale    
  25. 25.           Nike  ID  has  become  the  benchmark  for  mass   customisa9on  services  around  core  products   Curated   Op2ons   (Innova2on)   Configure   Your  Own     (Proposi2on)   Direct  to   Home   (Delivery)   Mass   Customis-­‐ a2on   (Trend)   Unique   Personal   Products   (Experience)  
  26. 26.           Amazon  is  a  massively  efficient  business  delivering   customer  sa9sfac9on  via  proprietary  technology  
  27. 27.           Amazon  uses  its  data  exper9se  to  give  customers  a   huge  range  of  credible  personal  recommenda9ons   Personal   Matching   (Innova2on)   Everything   fast  and   cheap   (Proposi2on)   Integrated   Logis2cs   (Delivery)   Real-­‐2me   Analy2cs   (Trend)   Simple  and   Ubiquitous   (Experience)  
  28. 28.           Under  Singapore  Airline’s  ownership,  Virgin  Atlan9c   has  consistently  reinvented  the  flying  experience  
  29. 29.           Virgin  Atlan9c’s  crea9on  of  Upper  Class  and  Premium   Economy  changed  the  mass  accessible  experience   Reinvent   Status  Quo   (Innova2on)   Create   New   Segments   (Proposi2on)   Challenger   Posi2oning   (Delivery)   Flexible   Spaces   (Trend)   Radical   Seamless   Design   (Experience)  
  30. 30.           Bhar9  Airtel’s  extreme  outsourcing  business  model   enabled  it  to  scale  quickly  and  it  is  now  the  world  #3  
  31. 31.           By  partnering  on  everything  but  the  core  customer   rela9onship,  Airtel  has  been  able  to  grow  quicker   Scaling   without   Legacy   (Innova2on)   The  Latest   at  Low   Cost   (Proposi2on)   Global   Partners   (Delivery)   Pervasive   Mobile   (Trend)   Simple   and  Fast   Access   (Experience)  
  32. 32.           Starwood  drives  high  loyalty  by  efficiently  delivering   consistent  and  memorable  guest  experiences    
  33. 33.           Starwood  Hotels  has  created  mul9ple  leading  but   separate  branded  experiences  with  global  resonance   Dis2nc2ve   Branded   Experiences   (Innova2on)   Mul2-­‐ brand   Pordolio   (Proposi2on)   Consistent   Franchise   (Delivery)   Global   Connec2vity   (Trend)   Memorable   Standards   (Experience)  
  34. 34.           Google  excels  at  par9cipa9ve  product  development   that  supports  incessant  adjacent  sector  disrup9on  
  35. 35.           Google  has  been  innova9ng  across  mul9ple  sectors   while  building  the  world  most  connected  ad  agency   Growing   Reach  and   Relevance   (Innova2on)   Beeer   Informa2on   (Proposi2on)   Connected   Data   (Delivery)   Credible   Sources   (Trend)   Beta  based   Innova2on   (Experience)  
  36. 36.           Live  Na9on  has  aligned  around  change  in  its  industry   and  fully  repackaged  the  concert  value  proposi9on  
  37. 37.           While  the  cost  to  access  music  has  declined,  Live   Na9on  has  premiumised  the  mass  live  experience   360  Wrap   Star  Deals   (Innova2on)   Access  to   the  Top   Acts   (Proposi2on)   Exclusive   Partners   (Delivery)   Live   Experiences   (Trend)   Seamless   Integra2on   (Experience)  
  38. 38.           Zipcar  brings  vehicle  affordable  access  by  the  hour   into  the  neighbourhood  and  changes  rental  models  
  39. 39.           By  shi=ing  both  pricing  and  access  models,  Zipcar  is   making  flexible  access  more  popular  than  ownership     Replace   Urban  Car   Ownership   (Innova2on)   Flexible   Access   (Proposi2on)   Availability   Guarantee   (Delivery)   Access  not   Ownership   (Trend)   Easy  and   Local   (Experience)  
  40. 40.           Narayana  Hrundayalaya  leads  in  efficient  surgery   through  integrated  process  and  business  innova9on  
  41. 41.           As  a  centre  of  exper9se  Naranaya  Hrundayalaya  is   the  place  to  go  for  doctors  and  pa9ents  globally   Systema2c   Factory   (Innova2on)   Best  for   Less   (Proposi2on)   Op2mised   Process   (Delivery)   Medical   Tourism   (Trend)   Fast  and   Efficient   (Experience)  
  42. 42.           Across  Africa  M-­‐Pesa  has  proven  that  money  transfer   via  mobile  is  viable  at  the  booom  of  the  pyramid  
  43. 43.           M-­‐Pesa  is  scaling  fast  as  a  trusted  plaqorm  with   momentum  building  to  a  wider  porqolio  and  reach   Step  change   for  the   Unbanked   (Innova2on)   Low  Cost   Transfer   (Proposi2on)   Agent   Networks   (Delivery)   Pervasive Mobile   (Trend)   Simple   and   Trusted   (Experience)  
  44. 44.           AA  Drivesafe  has  made  pay  as  you  drive  insurance   accessible  through  rewarding  behaviour  change    
  45. 45.           Improving  on  previous  models  AA  Drivesafe  provides   transparent  cheaper  car  insurance  for  safer  drivers   Cheaper   insurance   for  safe   drivers   (Innova2on)   Visible   Choice   (Proposi2on)   Partner   with   Networks   (Delivery)   Real  Time   Tracking   (Trend)   Clear   Payback   (Experience)  
  46. 46.           Ci9zinvestor  is  bringing  direct  local  benefit  to  those   wishing  to  invest  in  social  innova9on  and  ac9on  
  47. 47.           By  matching  tangible  needs  to  investors  Ci9zinvestor   is  efficiently  by-­‐passing  local  government  ac9vi9es   Transparent   Marketplace   (Innova2on)   Invest  in   Local   (Proposi2on)   Collec2ve   Ac2on   (Delivery)   Crowd-­‐ funding   (Trend)   Social   Impact   (Experience)  
  48. 48.           Zopa  is  a  pioneer  in  peer-­‐to-­‐peer  banking  that  shares   efficiencies  with  both  savers  and  those  seeking  loans  
  49. 49.           By  crea9ng  a  more  efficient  and  trusted  system  Zopa   and  co  have  the  poten9al  to  disrupt  the  mainstream   Community   Bond   Market   (Innova2on)   Beeer   Rates   (Proposi2on)   Using   Dispersed   Scale   (Delivery)   Power  of   Networks   (Trend)   Simple   and   Trusted   (Experience)  
  50. 50.           Mo9f  is  demys9fying  the  fund  management  arena  by   giving  a  plaqorm  to  those  with  the  best  ideas  
  51. 51.           Investors  can  put  their  money  behind  the  best   concepts  that  Mo9f  makes  clear  to  everyone   Demys2fying   Fund   Management     (Innova2on)   Access  High   Performers   (Proposi2on)   Credible   Investment   Engine   (Delivery)   ShiY  in   Trust   (Trend)   Informed   Inves2ng   (Experience)  
  52. 52.           Qcue’s  approach  to  real-­‐9me  dynamic  pricing  of   9ckets  is  helping  improve  the  market  efficiency  
  53. 53.           In  providing  transparency  on  value  op9ons,  Qcue   helps  all  key  event  players  maximise  their  revenues   Accurate   Ticket   Pricing   (Innova2on)   Op2mise   Yield   (Proposi2on)   Enabling   SoYware   (Delivery)   Dynamic   Pricing   (Trend)   Real-­‐2me   Insight   (Experience)  
  54. 54.           Across  these  ‘next  genera9on’  service  innova9ons,   the  four  key  themes  are  all  evident  and  significant   •  Developed  in  closer  partnership  with  others  especially  including  customers   Co-­‐crea2on   •  Take  advantage  of  interac9vity,  social  networks  and  shi=  towards  seman9c  web   Web  2.0   •  Adopt  and  adapt  new  mechanisms  for  tangible  and  intangible  value  crea9on   New  Business  Models   •  Underpinned  by  changes  in  how  people  and  organiza9ons  wish  to  share  value   New  Value  ShiYs  
  56. 56.           This  third  session  uses  the  case  studies  so  that  you   see  which  have  greatest  relevance  for  your  business   The  aim  of  this  session  is  four-­‐fold:   §  Allow  you  to  consider  the  case  studies  more   §  Encourage  you  to  think  of  what  lessons  they  may  have  for  you   §  Map  those  which  highest  poten9al  impact  and  relevance   §  Select  and  discuss  the  few  key  case  studies  that  have  greatest  insight    
  57. 57.           First  use  your  case  study  cards  and  sort  them  by  their   poten9al  impact  to  the  market  in  which  you  operate   Increasing  poten2al  impact  to  your  market     Low   High  
  58. 58.           Now  thinking  more  specifically  about  your  business,   raise  and  lower  the  cards  to  sort  them  by  relevance      Increasing  poten2al  relevance  to  your  business   Low   High  
  59. 59.           Your  matrix  should  now  clearly  highlight  those  case   studies  from  which  you  think  there  is  most  to  learn   High   Relevance  /   Low  Poten9al   Impact   High   Relevance  /   High   Poten9al   Impact   Low   Relevance  /   Low  Impact   Low   Relevance  /   High   Poten9al   Impact   Example  outcome:  
  61. 61.           This  final  session  pilots  four  different  tools  to  help   iden9fy  game-­‐changing  service  concepts     §  Parallel  View  –  What  if  X,  Y  or  Z  were  running  our  business   §  Developing  scenarios  of  top  case  study  examples  taking  control   §  Good  at  highligh9ng  different  cultural  and  strategic  priori9es   §  Value  Innova2on  and  Blue  Ocean  Strategy   §  Using  this  well  regarded  approach  to  reconfigure  value  proposi9ons   §  Provides  a  clear  approach  for  refocusing  on  the  customer   §  Lean  Thinking   §  Taking  out  what  does  not  add  value  and  reusing  freed  resources   §  Very  good  at  helping  firms  seeing  how  they  can  ‘do  things  beoer’   §  Destroy  Your  Own  Business   §  Approach  for  rethinking  how  to  create  value  if  free  of  legacy   §  Excellent  way  of  s9mula9ng  people  around  ‘doing  beoer  things’  
  62. 62.           Parallel  Views  help  us  think  about  how  other  brands   would  deliver  a  beoer  /  different  service  experience   §  Principle  based  on  looking  at  issue  through  other’s  eyes   §  Can  be  used  for  whole  new  service  crea2on  or  experience  innova2on   §  Works  well  if  choosing  organisa2ons  both  in  your  sector  and  outside   §  Best  if  you  push  the  boundaries  and  go  for  extremes   §  Focus  on  revolu2onary  changes  that  other  brands  could  do  
  63. 63.           Parallel  Views  –  Approach  Overview     Select   •  Choose  two   different   brands   known  for   innova9on   in  service   experience   Suspend   •  Ignore  your   exis9ng  and   legacy  ways   of  service   delivery  in   your  market   Change   •  Discuss  how   the  other   brands   could   deliver  a   beoer   experience   Detail   •  Spell  out   the  key   components   of  the  new   service   innova9on   Impact   •  Discuss   which  of   these  could   be  achieved   by  your   business   and  how  
  64. 64.           Value  innova9on,  is  the  simultaneous  pursuit  of   differen9a9on  and  low  cost,  crea9ng  a  leap  in  value     §  This  is  the  cornerstone  of  ‘blue  ocean   strategy’  in  crea2ng  value  for  both   buyers  and  the  company:   §  Value  to  buyers  comes  from  the   offering’s  u9lity  minus  its  price   §  Value  to  the  company  is  generated   from  the  offering’s  price  minus  its   cost   §  So,  value  innova2on  is  achieved   only  when  the  whole  system  of   u9lity,  price,  and  cost  is  aligned.  
  65. 65.           One  of  the  earliest  successful  uses  of  Value   Innova9on  thinking  was  for  Formule  1  hotels  
  66. 66.           Value  Innova9on  –  Approach  Overview   §  Iden2fy  the  key  factors  on  the  service  delivery  for  customer  and  supplier   §  Plot  and  map  a  couple  of  current  leading  offers  as  curves   §  Break  the  value-­‐cost  tradeoff  by  answering  the  following  ques2ons:   1.  What  factors  can  be  eliminated  that  the  industry  has  taken  for  granted?   2.  What  factors  can  be  reduced  well  below  the  industry’s  standard?   3.  What  factors  can  be  raised  well  above  the  industry’s  standard?   4.  What  factors  can  be  created  that  the  industry  has  never  offered?   §  Redraw  the  value  curve  of  a  new  service  innova2on  that  changes  the  game   §  Discuss  the  new  value  proposi2on  and  how  to  delivery  it  effec2vely        
  67. 67.           Lean  Thinking  first  evolved  as  a  technique  used  in   manufacturing  but  is  now  applied  to  many  areas  
  68. 68.           There  are  five  overriding  principles  to  Lean  Thinking   that  have  helped  many  reinvent  their  service  delivery   Iden2fy  Customers  and  Specify  Value     §  Only  a  frac9on  of  total  effort  in  any  organisa9on  adds  value  for  the  end  customer     §  Need  to  clearly  define  Value  for  a  service  from  the  end  customer’s  perspec9ve     §  All  the  non  value  ac9vi9es  -­‐  or  waste  -­‐  can  be  targeted  for  removal   Iden2fy  and  Map  the  Value  Stream     §  The  Value  Stream  is  the  end-­‐to-­‐end  ac9vi9es  across  the  firm  delivering  the  service.     §  Understand  what  your  customer  wants  and  how  you  are  delivering  that  to  them.   Create  Flow  by  Elimina2ng  Waste     §  When  you  map  the  Value  Stream  you  will  find  less  than  half  of  ac9vi9es  add  value.     §  Elimina9ng  this  waste  ensures  that  your  service  “flows”  beoer  to  the  customer.   Respond  to  Customer  Pull     §  See  the  customer  demand  and  then  create  your  process  to  respond  to  this.   §  Produce  only  what  the  customer  wants  when  the  customer  wants  it.   Pursue  Perfec2on     §  Radically  reorganising  individual  process  steps  to  eliminate  waste.     §  Aim  for  perfec9on,  where  every  ac9on  adds  value  for  the  end  customer.  
  69. 69.           Lean  Thinking  –  Approach  Overview   Source:  Peter  Hines,  Lean  Enterprise  Research  Centre,  Cardiff  Business  School   Iden9fy  Value   Map  the  Value   Stream   Create     Flow   Establish     Pull   Seek  Perfec9on  
  70. 70.           Destroy  Your  Own  Business  was  an  approach  to   radical  rethinking  that  grew  out  of  GE  in  2000   Back  in  2000  GE  created  the  destroy-­‐your-­‐business  exercise     §  It  forced  every  company  business  unit  to  benchmark  compe9tors,  develop   a  Web-­‐based  business  plan  to  erode  its  own  customer  base  and  then   change  its  own  business  opera9ons  to  respond  to  the  threat.   Since  then  the  approach  has  evolved  into  a  co-­‐crea2on  experience   §  Working  with  customers  to  co-­‐define  new  ways  of  mee9ng  new  needs   Core  principle  is  well  proven:   §  If  you  are  freed  from  exis9ng  prac9ce  and  assets,  how  would  you  use  new   approaches  available  today  to  take  #1  spot  in  your  sector?   §  What  can  your  exis9ng  business  do  to  take  advantage  of  this  by  innova9ng   the  service  proposi9on  to  customers?  
  71. 71.