Service Innovation: Designing Innovative Experiences - presented at the 2009 ASQ World Conference on Quality and Improvement, May 2009.

1. SERVICE INNOVATION Designing Innovative Experiences Alexis Goncalves Innovation Insight Network 2009 ASQ World Conference on Quality & Improvement Session T35

3. INNOVATION THINKING

4. INNOVATION THINKING when you have changed somebody’s HABIT PATTERNS INNOVATION GOES BEYOND… > A CREATIVE IDEA > AN INVENTION INNOVATION IS...

5. EXPERIENCE THINKING

6. EXPERIENCE IS STRUCTURALLY DETERMINISTIC every company delivers the customer experience that is organized to deliver. IVR Phone service THE CUSTOMER WORLD The welcome letter The physical store In-store service The statements Channel Website Direct mailing The buying process Cashiers Account Manager TV ads EXPERIENCE IS NOT JUST PRACTICAL it is also emotional, and sometimes even irrational. THINKING EXPERIENCE

8. THE STRUCTURE OF CUSTOMER EXPERIENCE THE CUSTOMER WORLD IVR Retail store E-Mail Statements Channel Direct Mail Website Credit card Bilboards Applications Acct. Mgr. TV Ads Day To Day Experiences Expectations & Needs THE BUSINESS WORLD Technology & Infrastructure Organizational Culture

9. INNOVATION PROCESS

10. Visioning Discovering Analyzing Synthesizing Realizing INNOVATION LIFE CYCLE

11. Declare Innovation Intent 1 Develop Insights 5 Explore Concepts 6 Make Roadmaps 7 Stage Experiences 8 People 2 Technology 3 Business 4 Visioning Discovering Analyzing Synthesizing Realizing WORKING PROCESS

12. Declare Innovation Intent 1 Develop Insights 5 Explore Concepts 6 Make Roadmaps 7 Stage Experiences 8 People 2 Technology 3 Business 4 Visioning Discovering Analyzing Synthesizing Realizing PROCESS IS NON-LINEAR

13. Declare Innovation Intent 1 Develop Insights 5 Explore Concepts 6 Make Roadmaps 7 Stage Experiences 8 People 2 Technology 3 Business 4 Visioning Discovering Analyzing Synthesizing Realizing Tasks Tasks Tasks Tasks Tasks Sense trends Develop foresight Declare intent Discover latent needs Discover technologies Discover white spaces Analyze data Find patterns Develop insights Develop and evaluate concepts Create platforms Make briefs and roadmaps Make prototypes Create pilots Plan launch TASKS

14. Declare Innovation Intent 1 Develop Insights 5 Explore Concepts 6 Make Roadmaps 7 Stage Experiences 8 People 2 Technology 3 Business 4 Visioning Discovering Analyzing Synthesizing Realizing Tasks Tools Tasks Tools Tasks Tools Tasks Tools Tasks Tools Sense trends Develop foresight Declare intent Trend Map Scenario Plan Preferred Future Diagnostic System Concept Space Bibliometrics Discover latent needs Discover technologies Discover white spaces Ethnographic Studies Shadowing Photo-Elicitation Technology Mining Technology Scouting Innovation Canvas Analyze data Find patterns Develop insights Activity Structuring Experience Map Contextual Analysis Extreme Users Perverted Users Think Inside the Box Insight Matrix Develop and evaluate concepts Create platforms Make briefs and roadmaps Bodystorming / Brainstorming Unfocused Group Sensualization Storyboarding Second Life Mock-ups Platform Plan Business Case Make prototypes Create pilots Plan launch Behavioral Prototype Concept Prototype Blueprint Scenario Testing Simulation Development Plan Partnership Net TOOLS

15. Declare Innovation Intent 1 Develop Insights 5 Explore Concepts 6 Make Roadmaps 7 Stage Experiences 8 People 2 Technology 3 Business 4 Visioning Discovering Analyzing Synthesizing Realizing Tasks Tools Tasks Tools Tasks Tools Tasks Tools Tasks Tools Sense trends Develop foresight Declare intent Trend Map Scenario Plan Preferred Future Diagnostic System Concept Space Bibliometrics Discover latent needs Discover technologies Discover white spaces Ethnographic Studies Shadowing Photo-Elicitation Technology Mining Technology Scouting Innovation Canvas Analyze data Find patterns Develop insights Activity Structuring Experience Map Contextual Analysis Extreme Users Perverted Users Think Inside the Box Insight Matrix Develop and evaluate concepts Create platforms Make briefs and roadmaps Bodystorming / Brainstorming Unfocused Group Sensualization Storyboarding Second Life Mock-ups Platform Plan Business Case Make prototypes Create pilots Plan launch Behavioral Prototype Concept Prototype Blueprint Scenario Testing Simulation Development Plan Partnership Net Add tools… tailor it to projects.

16. Declare Innovation Intent 1 Develop Insights 5 Explore Concepts 6 Make Roadmaps 7 Stage Experiences 8 People 2 Technology 3 Business 4 Visioning Discovering Analyzing Synthesizing Realizing Tasks Tools Tasks Tools Tasks Tools Tasks Tools Tasks Tools Sense trends Develop foresight Trend Map Scenario Plan Preferred Future Diagnostic System Concept Space Bibliometrics Discover latent needs Discover technologies Discover white spaces Ethnographic Studies Shadowing Technology Mining Analyze data Find patterns Develop insights Activity Structuring Contextual Analysis Extreme Users Perverted Users Think Inside the Box Insight Matrix Develop and evaluate concepts Create platforms Make briefs and roadmaps Bodystorming / Brainstorming Unfocused Group Sensualization Storyboarding Platform Plan Business Case Make prototypes Create pilots Plan launch Behavioral Prototype Concept Prototype Blueprint Scenario Testing Simulation Development Plan Partnership Net PRACTICAL EXAMPLES Declare intent Photo-Elicitation Technology Scouting Innovation Canvas Experience Map Second Life Mock-ups 1 2 3 4 5 6

17. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 Hospitality Industry

18. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 1

19. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 “ We will put a man on the moon and bring him back again before the end of the decade.” JFK Construct a clear Innovation Intent

20. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 The Ritz-Carlton Hotels “ We need to change our brand from elegant formality to one of more relevant and relaxed luxury.” Simon Cooper President & COO

21. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 “ I want to create a fundamentally new category of Hotels… it will have the same features as a Marriott but cost only $20.00 per night.” Ratan Tata Chairman Tata Group Ginger Hotels (Tata Group)

22. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 Summary Senior executives need to create a point of view and have skin in the game. An innovation intent clarifies: An arena of ascending importance – not a slogan or ad campaign. Valuable stretches we don’t know how to do today . Base idea: Characterize the next source of industry focus, stretch, and value

23. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 2

24. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 Content Analysis of Images Distribute CAMERAS to Guests along with a set of GUIDELINES for taking pictures. DESIGN EQUIPMENT AMENITIES SERVICE SETTING

25. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 Quality of Experience “ Food tray in the hall left unattended and this gives a negative impression and represents a lower quality of service”. Hotel Guest

26. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 Evidence of Thoughtfulness “ The staff took time to fold the toilet paper; the attention to detail in the bathroom met my needs”. Hotel Guest

27. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 PEOPLE OBSERVATIONAL METHODS Ethnographic studies Photo-elicitation Shadowing Deep hanging out Visual diaries Video ethnographies Customer Labs SEGMENTATION Demographics Psychographics Technographics Personas, Lifestyle SELF REPORT METHODS Surveys Focus Groups Intercepts Lead User Interview ARCHETYPING Emotions Metaphor elicitation Use Observational Methods to discover people’s latent and unarticulated needs. Summary

28. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 3

29. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 Surface Computer Technology Hotel Lobby Experience: a virtual concierge for finding local restaurants, bars, entertainment, shopping and other services; a digital music jukebox; and a directory with photos and info. Sheraton Hotels and Microsoft, 2008

30. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 Tray Tracking Technology The Tray Tracker System detects food trays in hotel corridors and alerts staff to their location for prompt pick-up. Axxess Industries, Inc. 2008

31. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 NFC + RFID Technologies Guests make an electronic reservation and receive a SMS on their cell phone with room number and secure electronic key, avoiding check-in lines by going directly to their hotel room. Ginger Hotels, IBM, and Vingard 2008

32. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 Create Technology Briefs What are the problems to solve Look for proven technologies Working prototypes Evidence of consumer interest Determine the areas to look for Produce a Top-10 consumer needs list Summary Screen & Evaluate Ideas Log ideas into “Eureka Catalog”

33. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 4

34. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 Find the White Space

35. The Innovation Canvas : 10 types of Innovation Note: adapted from “The Ten Types of Innovation”, by Larry Keeley, Doblin Inc. 1999. How you express your offering’s benefit to customers How you create an overall experience for customers How you connect your offerings to your customers Core process Process . Enabling process Business model Finance Networking Product performance Offering Product system Service Channel Delivery Brand Customer experience How you service your customers Extended system that surrounds an offering Basic features, performance, and functionality Core processes related to core competencies Non-core processes that support the business How the enterprise makes money Enterprise structure and value chain

36. web-based travel agent vouchers cell phones, Never-Lost Minimal / none Some activity Moderate activity Frequent activity Non-stop activity availability, models rapid pick-up, rapid return fleet optimization modeling travel agents airport shuttle bus business travelers Offering Core process Process . Enabling process Business model Finance Networking Product performance Product system Service Channel Delivery Brand Customer experience Rental car industry: stuck in feature warfare Note: adapted from the TEKES Report, by Jeneanne Rae, Peer Insight 2007. Most competitive activity in the rental car industry is focused here

38. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 Summary Challenge Projects Add dimensions of experience and better business models Use the ones that matter most Ensure you have a shared understanding of which dimensions you should concentrate Make a Splash Use enough of them to make a splash (3 or 4 fields, changed at once, are disruptive)

39. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 5

40. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 Sample Experience Map

42. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 6

43. Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 Exploring Concepts For Starwood, opening aloft in Second Life is a way to test-market the hotel's design and rapidly prototype the evolving concept. Starwood Hotels and Linden Lab, 2006

44. Summary Declare intent 1 Photo-Elicitation Technology Scouting Innovation Canvas 2 3 4 Experience Map 5 Second Life Mock-ups 6 Select your Virtual World Buy an island or a plot on the mainland? Create a tribe or join an existing one? Verify your Target Market Determine if your target market is in the virtual world Conduct Qualitative Research Use real avatars to test your virtual world concept

46. Q&A

47. REFERENCIAS Visit my Website http://innovationinsight.net/ Join my Network http://www.linkedin.com/in/goncalves Skype Me alexis_goncalves Book “Innovation Hardwired” AMAZON Books http://www.amazon.com