NECTEC TALK

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sasiporn.us@spu.ac.th

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• Service Innovation

• Key success factors

• Innovation life cycle

• Service Innovation Approach

• Methodologies and Tools

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

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

Types of Innovation

ServiceInnovation

Product Innovationthe creation of a good that is either new, or improved on previous goods of its kind.

Process Innovationthe implementation of a new or significantly improved production or delivery method (including significant changes in techniques, equipment and/or software).

Paradigm Innovationchanges 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

G-D vs. S-D

Goods-Dominant Concepts

Goods

Products

Feature/attribute

Value-added

Price

Equilibrium systems

Supply Chain

To Market

Product orientation

Service-Dominant Concepts

Service

Experiences

Solution/Process

Co-creation of value

Value proposition (offering)

Complex adaptive systems

Value-creation network/constellation

Market with

Service-Dominant Logic

(Consumer and relational)

The Service-Dominant Logic Mindset: Overview and Directions, Stephen L. Vargo, ShidlerCollege of Business, University of Hawai’i at Manoa

Innovation Process Life Cycle

• Supply Pushed (Technology Pushed)

• Demand Pulled (Market Pushed)

– integrates consumer needs in the innovation process

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

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.

Tool for Business Analysis

Tools for Problem Analysis

Analyze cause and effect

Organize ideas and data, finding relationships of data

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 Strategy Development Process

Step 2: Uncover Customer Needs

Web 2.0, Social NetworkingKnowledge/Experience Sharing

Approach Examples of Techniques & Tools

Market survey Questionnaire

Interview

Brainstorming Focus group,

KJ Method

Observation Customer behaviors model

Be your own customers

Customer Behavior Model

Source : http://jcmc.indiana.edu/vol9/issue2/giaglis.html

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

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

Holistic View of Offering

Service Blueprint

http://www.hygge.ie/service-design-thinking/what-exactly-is-service-design/

Mary Jo Bitner, Amy L. Ostrom, Felicia N. Morgan, “Service Blueprinting: A Practical Technique for Service Innovation”, Center for Services Leadership, Arizona State University

Improved Version of Service Blueprint

1. Physical Evidence

2. Customer Actions

3. Visible Staff Actions

4. Invisible Staff Actions

5. Policy and Procedure

6. Internal Support System

7. External Support System

8. Required Resource

Support Processes layer is decomposed into 4 layers

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

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

THANK YOU