Mile Markers on the Service Innovation Journey:A Four-Year Study of the Discipline of Service Innovation
Presented at:
AHRQ Annual ConferenceSeptember 27, 2007
Peer Insight
Copyright 2007 Peer Insight LLC All rights reserved page 2Peer Insight September 27, 2007
INN
OVA
TIO
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There is a natural progression of knowledge acquisition
mystery
heuristic(rules of thumb)
algorithmbinary code
QUALITY
• Much of what we know is wrong• Leaders must be prepared to fail
Adapted from Roger Martin, Rotman School of Business, University of Toronto
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We are fortunate to have some great companies as our research partners
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Those companies are adopting innovation at different rates
leading edgeearly adoptersearly majoritylaggards late majority
What does it mean to our customers? To our employees? To the world?
cultural transformation
(cultures)
“Why”
M&A +Six Sigma
No Man’s Land Innovation 1.0 Innovation 2.0 Innovation 3.0
“Stay thecourse”
“If”
Is innovation the way to grow profitably in the post-Six Sigma era?
search for organic growth
(experiments)
“How”
How do we find big ideas and get them off the ground?
methods and protocols
(projects)
“How it scales”
How do we make innovation easier, more systematic, so it doesn’t rely on heroic acts?
innovation operating model
(programs)
burningquestion
focus
(unit of measure)
Distribution of innovation sophistication, all companies
Source: Peer Insight analysis of 115 recent service innovation projects
Copyright 2007 Peer Insight LLC All rights reserved page 5Peer Insight September 27, 2007
M&A +Six Sigma
No Man’s Land Innovation 1.0 Innovation 2.0 Innovation 3.0
“If” “How” “How it scales” “Why”
leading edgeearly adoptersearly majoritylaggards late majority
There are 5 key lessons firms learn along the innovation journey
What does it mean to our customers? To our employees? To theworld?
cultural transformation
(cultures)
Is innovation the way to grow profitably in the post-Six Sigma era?
search for organic growth
(experiments)
How do we find big ideas and get them off the ground?
methods and protocols
(projects)
How do we make innovation easier, more systematic, so it doesn’t rely on heroic acts?
innovation operating model
(programs)
Innovation as a new discipline
1
Customer-centricity
2
Senior leadership
3
Operating model
4
Change management
5
Source: Peer Insight analysis of 115 recent service innovation projects