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Mile Markers on the Service Innovation Journe A Four-Year Study of the Discipline of Service Inn Presented at: AHRQ Annual Conference September 27, 2007 Peer Insight

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Page 1: Mile Markers on the Service Innovation Journey: A Four-Year Study of the Discipline of Service Innovation Presented at: AHRQ Annual Conference September

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

Page 2: Mile Markers on the Service Innovation Journey: A Four-Year Study of the Discipline of Service Innovation Presented at: AHRQ Annual Conference September

Copyright 2007 Peer Insight LLC All rights reserved page 2Peer Insight September 27, 2007

INN

OVA

TIO

N

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

Page 3: Mile Markers on the Service Innovation Journey: A Four-Year Study of the Discipline of Service Innovation Presented at: AHRQ Annual Conference September

Copyright 2007 Peer Insight LLC All rights reserved page 3Peer Insight September 27, 2007

We are fortunate to have some great companies as our research partners

Page 4: Mile Markers on the Service Innovation Journey: A Four-Year Study of the Discipline of Service Innovation Presented at: AHRQ Annual Conference September

Copyright 2007 Peer Insight LLC All rights reserved page 4Peer Insight September 27, 2007

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

Page 5: Mile Markers on the Service Innovation Journey: A Four-Year Study of the Discipline of Service Innovation Presented at: AHRQ Annual Conference September

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