ACPS 2010, Module 6, Services Innovation Topic 5 Services Innovation Framework 10 Types of Innovations Action steps

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