topic 5 services innovation framework
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ACPS 2010, Module 6, Services InnovationTopic 5Services Innovation Framework10 Types of InnovationsAction stepsTRANSCRIPT
© 2010 IBM Corporation
Zaheer Travadi – Sr. Strategy & Transformation Consultant | Program Manager – WW STG Run Rate Marketing
Module 6 - Services innovationServices Innovation Framework and Case Studies
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Revenues and Profits of Top 10 (non-energy) Companies 2005
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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.
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Research – Tekes Exemplar 12 Companies across sectors
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Research – Peer Insights
� AARP
� ADT
� Apple
� ARCADIS
� Bank of America
� Baxter Healthcare
� CEMEX
� Crowe Chizek
� Diebold
� Enterprise
� GE Finance
� GE Healthcare
� GM OnStar
� Halmark Cards
� Harrah’s
� Hewlett-Packard
� Intel
� Johnson Controls
� Lloyds TSB
� Mayo Clinic
� McDonald’s
� Medtronic
� Microsoft
� Motorola
� NASDAQ
� Navistar
� NetFlix
� Pfizer
� Pitney Bowes
� Proctor & Gamble
� Progressive
� RIM
� ServiceMaster
� Siemens
� Standard & Poor’s
� Sun Microsystem
� Swisscom
� Syngenta
� The Hartford
� UPS
� Virgin
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Service Innovation Framework – Ten Types
“The Ten Types of Innovation” by Larry Keeley, Doblin Inc.
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Goods vs. Service Innovation
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“Outside In” - Most Successful Innovations
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Focus Your Service Innovation
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Case Studies
� Consumer Services: Enterprise Rental Car
� Financial Services: Bank of America
� Retail Services: American Girl
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Consumer Services: Enterprise Rental Car
Source: Peer Insight LLC
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Enterprise Went After White Space and Became #1
Source: Peer Insight LLC
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Financial Services: Bank of America
Company Profile
Innovation:
“Keep the Change” program
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Ten Types of Innovation Analysis -Bank of America
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Retail: American Girl
Company Profile
Innovation
Experiential Toy Experience
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American Girl Retail Experience
Showcase Stores: Chicago, Los Angeles, New York
Boutique and Bistro: Dallas, Atlanta
A Story Comes with Every Doll
Shopping experience also via Catalogs and Web
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Offering and Delivery
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Ten Types of Innovation Analysis – American Girl
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Design for the Customer Experience
1. Start with unmet user needs, not new ideas
2. Research methods that are based on deep
customer empathy (e.g., ethnography)
3. Focus is on the customer journey – not merely
your own touch points
4. Emphasis on identifying and winning the
moments of truth
5. Rapid, low-fidelity service prototyping
6. Open innovation – including the customer in the
earliest stages
7. Open innovation – bringing together a unique
value network
8. Creating evidence of the brand attributes within
the touch points
9. Use of storytelling to convey the experience
intent
10. Overcoming metrics that run counter to creating
compelling experiences
11. Creating a broad view of experiences – going
beyond marketing and into operations and IT
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Proposed Growth Model for the Service Era
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In Conclusion….Focus Your Service Innovation
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