1. NECTEC TALK
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Service Innovation
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sasiporn.us@spu.ac.th

2. ... F ...
• Service Innovation
• Key success factors
• Innovation life cycle
• Service Innovation Approach
• Methodologies and Tools

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. 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. Types of Innovation
Product Innovation
the creation of a good that is either new, or
improved on previous goods of its kind.
Service Process Innovation
Innovation 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. G-D vs. S-D
Goods-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. Innovation Process Life Cycle
• Supply Pushed (Technology Pushed)
• Demand Pulled (Market Pushed)
– integrates consumer needs in the innovation process

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. 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. Tool for Business Analysis

11. Tools for Problem Analysis
Organize ideas and data, finding relationships of data
Analyze cause
and effect

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. Service Innovation Strategy Development Process
Step 2: Uncover Customer Needs
Approach Examples of Techniques & Tools
Market survey Questionnaire
Interview
Brainstorming Focus group,
KJ Method
Observation Customer behaviors model
Knowledge/Experience Sharing Web 2.0, Social Networking
Be your own customers

14. Customer Behavior Model
Source : http://jcmc.indiana.edu/vol9/issue2/giaglis.html

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. 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. Holistic View of Offering

18. Service Blueprint
Mary Jo Bitner, Amy L. Ostrom, Felicia N. Morgan, “Service Blueprinting: A Practical Technique for Service Innovation”, Center
for Services Leadership, Arizona State University
http://www.hygge.ie/service-design-thinking/what-exactly-is-service-design/

19. 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
Support Processes layer is decomposed
7. External Support System into 4 layers
8. Required Resource

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. 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. THANK YOU