Chapter 8:Service Innovation and Design

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Presentation transcript:

Chapter 8:Service Innovation and Design CHALLENGES OF SERVICE INNOVATION AND DESIGN: Oversimplification Incompleteness Subjectivity Biased Interpretation IMPORTANT CONSIDERATIONS FOR SERVICE DESIGN Involve Customers and Employees Employ Service Design Thinking and Techniques Principles of behind Service Design Thinking 1.User-Centered (Customer-Centric): Designing your services based upon how they are experienced from the ‘customers perspective 2.Co-Creative: All stakeholder groups should be involved in the service design process 3.Sequencing: Services should be viewed and treated as a sequence of interrelated actions or events 4.Evidencing: Services are essentially intangible in nature and should be visualized in terms of ‘physical elements’ 5.Holistic:The entire environment in which the service exists and is delivered should be considered MKT 607, CH-08, MNH

TYPES OF SERVICE INNOVATION Service Offering Innovation: Types of change: Major or Radical: FedEx Small package OND Start-up businesses: Online Banking New service for currently served: Coffee bar in a book shop Service line extensions :Restaurant with new menu Service improvements: evening banking Style changes: Revising logo Innovating around Customer Roles Innovation through Service Solutions Service Innovation through Interconnected Products

STAGES IN SERVICE INNOVATION AND DEVELOPMENT

Front-End Planning Business Strategy Development or Review New Service Strategy Development SERVICE BLUEPRINTING: A TECHNIQUE FOR SERVICE INNOVATION AND DESIGN What is a Service Blueprint?

Service Blueprint Example Blueprint for Express Mail Delivery Service

Blueprint for Technology-Delivered Self-Service

Reading and Using Service Blueprint Benefits of Service Blueprinting Provides a platform for innovation. Recognizes roles and interdependencies among functions, people, and organizations. Facilitates both strategic and tactical innovations. Transfers and stores innovation and service knowledge. Designs moments of truth from the customer’s point of view. Suggests critical points for measurement and feedback in the service process. Clarifies competitive positioning. Provides understanding of the ideal customer experience.

Building a Blueprint