1. 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

2. 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

3. STAGES IN SERVICE INNOVATION AND DEVELOPMENT

4. 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?

6. Service Blueprint Example
Blueprint for Express Mail Delivery Service

8. Blueprint for Technology-Delivered Self-Service

9. 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.

10. Building a Blueprint