Topic 5 Services Innovation Framework

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ACPS 2010, Module 6, Services Innovation
Topic 5
Services Innovation Framework
10 Types of Innovations
Action steps

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Topic 5 Services Innovation Framework

  1. 1. Zaheer Travadi – Sr. Strategy & Transformation Consultant | Program Manager – WW STG Run Rate Marketing Module 6 - Services innovation Services Innovation Framework and Case Studies © 2010 IBM Corporation
  2. 2. Revenues and Profits of Top 10 (non-energy) Companies 2005 2 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  3. 3. Service Innovation Needs to Focus on Customer Experience The customer is the new reference point. The customer has replaced the direct competitor as the dominant reference point for strategy In contrast to the goods-era economy, which had more rigid boundaries of channels and competition, the fluid nature of the services-era economy introduces: – (1) competition from new and unexpected sources – (2) customers that are more informed and more demanding – (3) opportunities for new, information-driven business models. Companies such as Starbucks, Google and Whole Foods have successfully challenged conventional business wisdom through their uncanny instinct for delivering a compelling, branded customer experience. 3 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  4. 4. Research – Tekes Exemplar 12 Companies across sectors 4 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  5. 5. Research – Peer Insights AARP Medtronic ADT Microsoft Apple Motorola ARCADIS NASDAQ Bank of America Navistar Baxter Healthcare NetFlix CEMEX Pfizer Crowe Chizek Pitney Bowes Diebold Proctor & Gamble Enterprise Progressive GE Finance RIM GE Healthcare ServiceMaster GM OnStar Siemens Halmark Cards Standard & Poor’s Harrah’s Sun Microsystem Hewlett-Packard Swisscom Intel Syngenta Johnson Controls The Hartford Lloyds TSB UPS Mayo Clinic Virgin McDonald’s 5 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  6. 6. Service Innovation Framework – Ten Types “The Ten Types of Innovation” by Larry Keeley, Doblin Inc. 6 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  7. 7. Goods vs. Service Innovation 7 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  8. 8. “Outside In” - Most Successful Innovations 8 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  9. 9. Focus Your Service Innovation 9 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  10. 10. Case Studies Consumer Services: Enterprise Rental Car Financial Services: Bank of America Retail Services: American Girl 10 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  11. 11. Consumer Services: Enterprise Rental Car Source: Peer Insight LLC 11 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  12. 12. Enterprise Went After White Space and Became #1 Source: Peer Insight LLC 12 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  13. 13. Financial Services: Bank of America Company Profile Innovation: “Keep the Change” program 13 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  14. 14. Ten Types of Innovation Analysis -Bank of America 14 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  15. 15. Retail: American Girl Company Profile Innovation Experiential Toy Experience 15 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  16. 16. American Girl Retail Experience A Story Comes with Every Doll Showcase Stores: Chicago, Los Angeles, Boutique and Bistro: Dallas, Atlanta New York Shopping experience also via Catalogs and Web 16 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  17. 17. Offering and Delivery 17 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  18. 18. Ten Types of Innovation Analysis – American Girl 18 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  19. 19. Design for the Customer Experience 1. Start with unmet user needs, not new ideas 7. Open innovation – bringing together a unique value network 2. Research methods that are based on deep customer empathy (e.g., ethnography) 8. Creating evidence of the brand attributes within the touch points 3. Focus is on the customer journey – not merely your own touch points 9. Use of storytelling to convey the experience intent 4. Emphasis on identifying and winning the moments of truth 10. Overcoming metrics that run counter to creating compelling experiences 5. Rapid, low-fidelity service prototyping 11. Creating a broad view of experiences – going 6. Open innovation – including the customer in the beyond marketing and into operations and IT earliest stages 19 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  20. 20. Proposed Growth Model for the Service Era 20 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  21. 21. In Conclusion….Focus Your Service Innovation 21 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation
  22. 22. 22 IBM-SPJIMR – ACPS 2010 © 2010 IBM Corporation

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