Ideation and innovation in service operations

Transcription

1 Ideation and innovation in service operations TU-E3121 People in Service Operations Lecture Kirsi Polvinen Photo: Aalto Ventures Program, Aalto University

2 Innovation? Some defininitions Innovativeness? Concept?

3 Some defininitions Innovation a successful procedure turning an idea into a product or service, which is commercialized Innovativeness Creativity + ability to implement Ability of a person or organization to transfer an idea to innovation Concept? Developed idea having detailed descriptions of attributes and functions. It can be tested!

4 Big picture of innovation management ENVIRONMENT PHASE: Invention Planning Offering Development Strategy Commercialization Customer Interaction Business Intelligence, Foresight Crossfunctional teams Competence Roadmaps Portfolio Development Business Process LAUNCH Goods Service New Business Concept Innovation FOCUS ON: Creativity Decision Making PROCESS Speed Costs OFFERING 08/11/2017 IMI 4

5 Front-end of innovation process Development of the ideas into concepts Experiential front-end models include iteration, experimentation and testing ideas and concepts with external experts, customers and users. - They change the innovation process more agile.

6 Collaboration in multidisciplinary/ cross-functional teams Photo: Aalto Ventures program, Aalto University

7 Prototype is an early model that supports the development of a concept

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9 Making a Persona helps to understand the customer

10 Innovation Enablers Social environment: Innovation process Trust and safety Risk taking Freedom Clear vision Collaboration Concrete support Practices support and inhibit innovativeness? (in relation to the recognised enablers of the three environments) Offering Physical environment: Workplace Artefacts Organisation structures Process descriptions Instructions Virtual environment: Text Audio Picture & Video 3-D DIGI 10

11 OFFERING Products/Goods Tangible Homogenous Production and distribution separated from consumption Can be kept in stock A thing Core value produced in a factory Customers do not (normally) participate in production Transfer of ownership Services Intangible Heterogenous Production, distribution and consumption simultaneous Cannot be kept in stock An activity or process Core value produced in buyer-seller interactions Customers participate in production No transfer of ownership (Grönroos, 2000)

12 What is co-creation of value in services In services, value is always co-created with the customers and other actors. (Prahalad and Ramaswamy, 2002) Customer is not an object of value delivery but active participant in the process. Co-creation means the interactions between the firm, its customers, supplier and other stakeholders to create value. (Prahalad and Ramaswamy, 2004)

13 Features related to the innovation in services Close contact to the client A new service is created on the delivery with the client Knowledge intensiveness and intangible nature of a service Compared to product innovation, innovation process in services is not so well manageable Service innovation activities have more dimensions that have to be taken into account than product characteristics (ie. Human factors, organization structures, interfaces) Service innovation models are systemic by nature

14 Example of a service innovation model Edvardsson, B. and Olsson, J. (1996), Key Concepts for New Service Development, The Service Industries Journal, Vol. 16, No. 2, pp Creating the right prerequisites: service concept service system service process for a good customer process and a good customer outcome is the main task of service development!

15 Service model adapted from Edwardsson et al., 1996 VALUE PROPOSITION 1. CUSTOMER OUTCOME 2. CUSTOMER PROCESS SERVICE BUSINESS MODEL 3. PREREQUISITES SERVICE CONCEPT Service structure Pricing Market SERVICE SYSTEM Technologies Competences Suppliers SERVICE PROCESS Process phases Roles of a service provider and customer Depth of the service relationship

16 SERVICE CONCEPT Refers to the description of the customer s needs and how they are to be satisfied in the form of the content of the service. A detailed description of what is to be done for the customer and how this is to be achieved. Correspondence between customer needs and the service offer is essential! For the development: - DETAILS ABOUT THE CUSTOMERS - ROUGH ESTIMATE OF THE COST - CORE SERVICES AND SUPPORT SERVICES

17 SERVICE SYSTEM Includes the resources available for the process for realizing the service concept. Technology, models, quidelines Organization Competences Physical environment Needed for the development for example: - SELECTING AND TRAINING THE STAFF - PHYSICAL/TECHNICAL ENVIRONMENT

18 SERVICE PROCESS Relates to the chain of activities that must function properly if the service is to be produced. - Process phases (roles of service provider and customer) - Character of the customer interface (personal vs. utilization of ICT) - Depth of the service relationship (mass service vs. key clients) The service process consists of a clear description of the various activities needed to generate the service. Development of the service process: - SPECIFICATION OF THE ACTIVITIES - ROLES AND RESPONSIBILITIES - DETAILED DESCRIPTION: ACTIVITIES &SUB-PROCESSES, LINE OF VISIBILITY

19 Service Blueprinting Bitner M., Ostron A., Morgan F., Service Blueprinting: A Practical Technique for Service Innovation. California Management Review, Vol. 50, No.3. With the method it is possible to visualize the service process and involvement of different stakeholders in the in Back Stage and Front Stage.

20 Five components of Service Blueprints: 1.) Customer actions all of the steps that customers take as part of the service delivery process. 2.) Onstage/visible contact employee actions Those actions of frontline contact employees that occur as part of a face-to-face encounter. 3.) Backstage/invisible contact employee actions All of the other contact employee actions Below the line of visibility. Those that involve non-visible interaction with customers (e.g., telephone calls) Any other activities that contact employees do in order to prepare to serve customers or that are part of their role responsibilities.

21 4.) Support processes all of the activities carried out by individuals and units within the company who are not contact employees but that need to happen in order for the service to be delivered. 5.)Physical evidence The tangibles that customers are exposed to that can influence their quality perceptions. Blueprints are ideally developed by cross-functional teams, possibly even involving customers.

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23 Innovation Management Institute

24 Steps to build a Blueprint 1. Clearly articulate the service process or sub-process to be blueprinted (specify which segment of customers is the focus of the blueprint). 2. Actions of customers (serves as the foundation for all other elements of the blueprint). Questions such as: When does the service start and stop from the customer s point of view? tend to generate considerable discussion.

25 3. The contact employee actions, both onstage and backstage, followed by support processes. At this point, links can be added that connect the customer to contact employee activities and to needed support functions. 4. Physical evidence is typically the last component added to the blueprint

26 Why to build a Blueprint? Blueprinting promotes a conscious decision on what consumers see and which employees should be in contact at each moment. Service blueprinting makes it easier to see the key operational, human resources, and marketing issues associated with offering. The blueprinting technique is also a tool for managers to specify precisely the people and physical evidence required at each touchpoint.

27 Thanks Kirsi Polvinen Photo: Aalto Ventures program, Aalto University