This document discusses strategies for promoting service innovation. It defines key concepts like service, service systems, and innovation. It explores factors that affect service innovation like the service value chain and service culture. It also outlines specific strategies organizations can use to promote service innovation, such as creating a collaborative environment for value co-creation, focusing on new service design and delivery, and managing customer knowledge to enhance innovation capabilities. Education and developing a culture of innovation are also presented as ways to promote service innovation.
This document discusses strategies for promoting service innovation. It defines key concepts like services, service systems, and innovation. It then examines factors that affect service innovation like the service value chain and service culture. The document outlines three strategic approaches for service innovation: value creation, the 2D innovation model of new service design and delivery, and knowledge management. It argues that education and collaborative business models can promote service innovation by creating a culture of service and involving customers in the innovation process.
This document discusses the need for companies transitioning to product-service systems to define modular service offerings that can be provided across multiple product lines. It proposes a new method for defining service modules that consist of standardized services that can be leveraged for different products. The method builds on existing research on product modularity and platforms to extend the concept of modularity to integrated product-service systems. Defining modular services could help companies provide standardized service offerings more efficiently at scale, similar to how product modularity enables variety through reusable product modules.
This section provides an overview of value chain analysis, service value chain analysis, service profit chain analysis, and cost accounting approaches. It discusses the theoretical background and definitions of each approach, as well as their strengths, weaknesses, and relevance for consulting firms. Specifically, value chain analysis breaks firms' activities into primary and support activities to understand value creation. Service value chain focuses on customer throughput. Service profit chain links profitability to customer and employee satisfaction. Cost accounting provides internal management with decision-making information. The approaches require adjustment for services but can provide transparency and benchmarking opportunities for consulting firms.
Service design supports manufacturing servitization by:
1. Using user-centered techniques to better understand customers and value networks.
2. Representing service systems and customer journeys to visualize how value is co-created.
3. Creating value propositions centered on customer experiences rather than technologies.
While companies saw benefits, challenges included unfamiliar service design lexicon and difficulty accessing customer insights for B2B. Further research through implementing concepts is needed to fully study service design's impact on servitization.
This document discusses classifying services based on their underlying processes. It identifies four main categories of service processes: 1) people processing, 2) possession processing, 3) mental stimulus processing, and 4) information processing. Each category involves different levels of customer involvement and requires different operational and marketing approaches. Understanding the service process is important for designing customer-friendly and efficient service delivery systems.
The document discusses Business Service Management (BSM), which is defined as the discipline dedicated to the holistic management of services as corporate assets in an organization. It proposes a BSM Framework consisting of four clusters: 1) Service Lifecycle Management covering all stages from initiation to retirement, 2) Service Value Management ensuring business value creation through services, 3) Service Relationship Management integrating customers and suppliers, and 4) Service Enablement supporting the other clusters through quality, data and technology management. The core focus of BSM is presented as managing a service throughout its lifecycle from analysis and design to implementation, operation and retirement.
This document summarizes a presentation on combining creativity and efficiency in service innovation. The presentation discusses:
1) What service innovation is and why it is important for economic growth and competitiveness.
2) Combining customer-driven and employee-driven innovation approaches to develop new services.
3) Using foresight and futures tools to help innovators design services to meet future customer needs.
4) The need for policy support to promote service sector innovation.
CAN MACHINE-TO-MACHINE COMMUNICATIONS BE USED TO IMPROVE CUSTOMER EXPERIENCE ...Shaun West
This document discusses how machine-to-machine (M2M) communications can be used to improve the customer experience in a service environment. The authors conducted a literature review and interviews with stakeholders to understand how M2M data collection could be used to develop improved customer value propositions. While M2M has potential to enhance services, the authors found there are also risks if customer needs are not properly understood and different customer segments not accounted for. Firms must develop clear value propositions for each customer persona and be transparent in data use.
This document discusses strategies for promoting service innovation. It defines key concepts like services, service systems, and innovation. It then examines factors that affect service innovation like the service value chain and service culture. The document outlines three strategic approaches for service innovation: value creation, the 2D innovation model of new service design and delivery, and knowledge management. It argues that education and collaborative business models can promote service innovation by creating a culture of service and involving customers in the innovation process.
This document discusses the need for companies transitioning to product-service systems to define modular service offerings that can be provided across multiple product lines. It proposes a new method for defining service modules that consist of standardized services that can be leveraged for different products. The method builds on existing research on product modularity and platforms to extend the concept of modularity to integrated product-service systems. Defining modular services could help companies provide standardized service offerings more efficiently at scale, similar to how product modularity enables variety through reusable product modules.
This section provides an overview of value chain analysis, service value chain analysis, service profit chain analysis, and cost accounting approaches. It discusses the theoretical background and definitions of each approach, as well as their strengths, weaknesses, and relevance for consulting firms. Specifically, value chain analysis breaks firms' activities into primary and support activities to understand value creation. Service value chain focuses on customer throughput. Service profit chain links profitability to customer and employee satisfaction. Cost accounting provides internal management with decision-making information. The approaches require adjustment for services but can provide transparency and benchmarking opportunities for consulting firms.
Service design supports manufacturing servitization by:
1. Using user-centered techniques to better understand customers and value networks.
2. Representing service systems and customer journeys to visualize how value is co-created.
3. Creating value propositions centered on customer experiences rather than technologies.
While companies saw benefits, challenges included unfamiliar service design lexicon and difficulty accessing customer insights for B2B. Further research through implementing concepts is needed to fully study service design's impact on servitization.
This document discusses classifying services based on their underlying processes. It identifies four main categories of service processes: 1) people processing, 2) possession processing, 3) mental stimulus processing, and 4) information processing. Each category involves different levels of customer involvement and requires different operational and marketing approaches. Understanding the service process is important for designing customer-friendly and efficient service delivery systems.
The document discusses Business Service Management (BSM), which is defined as the discipline dedicated to the holistic management of services as corporate assets in an organization. It proposes a BSM Framework consisting of four clusters: 1) Service Lifecycle Management covering all stages from initiation to retirement, 2) Service Value Management ensuring business value creation through services, 3) Service Relationship Management integrating customers and suppliers, and 4) Service Enablement supporting the other clusters through quality, data and technology management. The core focus of BSM is presented as managing a service throughout its lifecycle from analysis and design to implementation, operation and retirement.
This document summarizes a presentation on combining creativity and efficiency in service innovation. The presentation discusses:
1) What service innovation is and why it is important for economic growth and competitiveness.
2) Combining customer-driven and employee-driven innovation approaches to develop new services.
3) Using foresight and futures tools to help innovators design services to meet future customer needs.
4) The need for policy support to promote service sector innovation.
CAN MACHINE-TO-MACHINE COMMUNICATIONS BE USED TO IMPROVE CUSTOMER EXPERIENCE ...Shaun West
This document discusses how machine-to-machine (M2M) communications can be used to improve the customer experience in a service environment. The authors conducted a literature review and interviews with stakeholders to understand how M2M data collection could be used to develop improved customer value propositions. While M2M has potential to enhance services, the authors found there are also risks if customer needs are not properly understood and different customer segments not accounted for. Firms must develop clear value propositions for each customer persona and be transparent in data use.
Extended information technology enabled service quality model for life insura...prjpublications
This document summarizes a research paper that develops an extended information technology enabled service quality model for life insurance services in India. The paper reviews literature on key concepts like information technology, service quality, customer satisfaction, and existing models. It then describes a study conducted with 221 respondents in Burdwan district, West Bengal, India to investigate the relationship between IT, service quality, and customer satisfaction in life insurance services. Statistical analysis was used to analyze the data and develop the proposed new model.
The document discusses the evolution of services marketing and the transition from goods-dominant logic to service-dominant logic. It defines services marketing and service science, noting their similarities in focusing on the customer experience but differences in perspectives. Specifically, services marketing focuses on business goals like profitability, while service science emphasizes value co-creation through knowledge exchange. The document proposes a new framework to help firms efficiently adopt service-dominant logic while retaining benefits of services marketing through co-creating customer experiences in service ecosystems.
P _ U IN GERMANY - CHANGING BUSINESS MODELdenothankachan
The document discusses changing business models in the power and utilities sector in Germany from traditional to digital age. It focuses on smart meters and the renewable energy business model. Germany has been adopting smart meters to save energy and meet EU targets of replacing 80% of meters by 2020. While not mandatory, studies support installation to create value for consumers and energy systems. The renewable business model has customers owning generation systems while utilities provide grid access and purchase electricity.
Introductory lecture on service innovation originally given to master students in an innovation and entrepreneurship course. Full video lecture available at: http://multimedie.adm.ntnu.no/mediasite/Viewer/?peid=e85576dd66ee4b8ebfa56923e262d9f3
The International Journal of Engineering and Science (The IJES)theijes
The International Journal of Engineering & Science is aimed at providing a platform for researchers, engineers, scientists, or educators to publish their original research results, to exchange new ideas, to disseminate information in innovative designs, engineering experiences and technological skills. It is also the Journal's objective to promote engineering and technology education. All papers submitted to the Journal will be blind peer-reviewed. Only original articles will be published.
The papers for publication in The International Journal of Engineering& Science are selected through rigorous peer reviews to ensure originality, timeliness, relevance, and readability.
This document provides an assessment of the value propositions and customer experiences of Apple and TalkTalk. It analyzes their value propositions using the IDIC model, which examines how they identify customers, differentiate customers, interact with customers, and customize offers. It also looks at how they manage customer complaints and the customer experience. Improvement strategies are developed, such as improving value propositions and customer experiences, drawing from CRM frameworks.
Class3 : 2nd reading assignment : "Knowledge Intensive Business Services As C...guest528308
This document presents a four-dimensional model for understanding service innovation. The four dimensions are: 1) the service concept, such as a new idea for organizing a solution to a problem, 2) the client interface, like new account management systems, 3) the service delivery system and organization, like introducing e-commerce capabilities, and 4) technological options, where information technology often plays an enabling role. The model is used to analyze the role of knowledge-intensive business services (KIBS) in innovation, arguing that some KIBS function as co-producers of innovation through their relationships with client firms.
This document provides an overview of supply chain management (SCM) through the development of a new framework of understanding. The framework aims to simplify the complex topic of SCM by unifying its different components and showing their relationships. It was developed by identifying key themes in SCM definitions, examining existing SCM frameworks and categorizations, and analyzing frameworks from other disciplines. The framework can guide researchers and practitioners to understand the field of SCM.
Service quality analysis and improving customer satisfaction in automobileIAEME Publication
This document summarizes a study that uses Quality Function Deployment (QFD) to analyze service quality and improve customer satisfaction in the automobile service industry. The study uses QFD to:
1) Identify key customer needs through a survey and prioritize them. Error-free vehicle service and on-time delivery were most important.
2) Define technical requirements to meet customer needs, such as express service, pick/drop options, and status monitoring.
3) Create a relationship matrix linking customer needs and technical requirements.
4) Evaluate current performance of technical requirements and set target values to meet customer expectations.
This document discusses service innovation in the water sector in the context of deregulation in England and Wales. It provides definitions of service innovation from literature and proposes a working definition for the water sector. Case studies and interviews with water sector experts explored interpretations of service innovation and examples being implemented. Key findings include that the water sector can improve fundamental business services like billing, customer relations, and data provision. Energy companies were cited as examples of innovative service models around pricing, monitoring, and communication that water companies could emulate.
G. Verstoep Service Innovation Businesspreneur Linked InGertjan Verstoep
The document discusses developing compelling service concepts centered around customer experiences. It emphasizes understanding customer insights, needs, and perspectives to innovate new service offerings. The document presents frameworks and models for conceptualizing service concepts, customer journeys, and business models to ensure services are meaningful and add value for customers. It also discusses disrupting traditional service systems and competing based on simplified, online-infused, service-focused propositions tailored to shifting customer domains.
The document discusses developing an information technology-enabled service quality model for life insurance services. It reviews literature on topics like information technology, service quality, customer satisfaction, and their relationships. It then describes the study's methodology, which used a survey to collect 221 responses from LIC customers in India. The responses were analyzed using SPSS to test hypotheses and develop a model relating information technology, service quality, and customer satisfaction for life insurance.
This document proposes a conceptual framework for assessing value-in-use from the customer's perspective. It reviews literature on customer perceived value and service-dominant logic, which emphasizes that value is co-created between the customer and provider through the customer's usage processes, not just determined by the provider. The framework relates service quality, usage process quality, and value-in-use. An exploratory study applies this framework in interviews with a maintenance service customer, finding support for the framework and revealing that customers can evaluate their own usage processes and articulate value at both the organizational and individual level over time.
1) The document proposes an ontology for e-business models to provide a shared understanding between managers and IT professionals.
2) It reviews literature on business models and identifies four key components: product innovation, customer relationships, infrastructure management, and financials.
3) The proposed ontology aims to highlight relevant e-business issues in these areas to help firms operate successfully online. It emphasizes understanding, sharing, and communicating business models.
This document provides an overview of a course on service quality and marketing. It outlines the course objectives, which include recognizing customer and provider perspectives, implementing marketing plans, and adapting to changing environments. The document also describes the topics that will be covered in the course, which include the characteristics of services, the marketing mix for services, service quality, and organizational change for services.
1) The document proposes a modeling approach for sensor-based, service-oriented business processes. It uses the Unified Modeling Language (UML) to model processes from high-level enterprise problems to low-level detailed processes.
2) The modeling approach is implemented using the Business Process Execution Language (BPEL) and analyzes business process integration between enterprises.
3) The proposed approach aims to improve process integration and interface between enterprises by exchanging necessary information to carry out activities according to the business process model in a peer-to-peer manner.
This document discusses service systems engineering (SSE). It defines SSE as a trans-disciplinary field that studies enterprise-customer interactions from socio-economic and technological perspectives to enable value co-creation. The document outlines several topics within SSE knowledge areas, including the fundamentals and properties of services, the scope and value of SSE, and SSE stages. It emphasizes that SSE requires collaboration between different stakeholders and resources to prioritize customer satisfaction in service design and delivery.
Technological Progress and Dealing With Clients In Consulting EnvironmentHabib Abou Saleh
This document discusses how disruptive technologies will change management consulting. It identifies mobile internet, automation, IoT, cloud computing and robotics as technologies that will significantly impact businesses. As these technologies provide clients new analytical capabilities, consulting firms will need to adopt new technologies to provide differentiated insights. Clients will also demand more specialized expertise. The rise of virtual work will change how consulting services are delivered and how clients and consultants interact. To survive, consulting firms will need to continually reinvent themselves by embracing new technologies, specializing expertise, standardizing prices, and adapting to virtual environments.
This document discusses how project management needs to evolve to address changing trends in the business environment. Traditional methods of stakeholder management, communication, and human resources management need to transform into deeper client engagement, articulating client value, and talent management. Project delivery also needs to incorporate more consulting approaches. Additionally, innovation, consulting skills, and social technologies can help augment traditional project management. These changes will help organizations better engage customers, deliver higher value, and ensure project success in today's dynamic marketplace.
This document provides an introduction to operations management. It defines operations management as managing the resources that produce and deliver goods and services. It distinguishes between manufacturing operations, which produce physical goods, and service operations, which produce intangible outputs. Key differences between manufacturing and services are discussed, including the inability to store services as inventory. The document also presents a systems view of operations management, describing an operations system as having inputs, a transformation process, and outputs. It classifies resources as either transforming resources that act on other elements or transformed resources that are the purpose of the system.
Heineken uses a Product-Service System (PSS) business model that is product-oriented and focused on creating value. The company's sustainability program called "Brewing a Better World" integrates sustainability into its strategy. This includes making the supply chain more sustainable by helping suppliers, especially in Africa, become more efficient and adopt practices like new seed varieties. It also focuses on reducing resources used in brewing like water, CO2 emissions, and electricity through initiatives like its Total Productive Maintenance Program. While Heineken works to build sustainable supplier relationships, it could better communicate and market these efforts to increase visibility and trust with stakeholders.
The document discusses outcome-based pricing for technology services. It defines three types of outcomes that can be delivered: 1) consumption-based, 2) key performance indicator (KPI)-based, and 3) financial-based. It also distinguishes between revenue streams, offer types, pricing models, and pricing mechanisms. Traditional technology companies derive most revenue from products, annual services contracts, and implementation projects. However, the industry is shifting from an "asset" focus to an "outcome" focus, where companies bundle products and services to guarantee target business outcomes for customers.
Extended information technology enabled service quality model for life insura...prjpublications
This document summarizes a research paper that develops an extended information technology enabled service quality model for life insurance services in India. The paper reviews literature on key concepts like information technology, service quality, customer satisfaction, and existing models. It then describes a study conducted with 221 respondents in Burdwan district, West Bengal, India to investigate the relationship between IT, service quality, and customer satisfaction in life insurance services. Statistical analysis was used to analyze the data and develop the proposed new model.
The document discusses the evolution of services marketing and the transition from goods-dominant logic to service-dominant logic. It defines services marketing and service science, noting their similarities in focusing on the customer experience but differences in perspectives. Specifically, services marketing focuses on business goals like profitability, while service science emphasizes value co-creation through knowledge exchange. The document proposes a new framework to help firms efficiently adopt service-dominant logic while retaining benefits of services marketing through co-creating customer experiences in service ecosystems.
P _ U IN GERMANY - CHANGING BUSINESS MODELdenothankachan
The document discusses changing business models in the power and utilities sector in Germany from traditional to digital age. It focuses on smart meters and the renewable energy business model. Germany has been adopting smart meters to save energy and meet EU targets of replacing 80% of meters by 2020. While not mandatory, studies support installation to create value for consumers and energy systems. The renewable business model has customers owning generation systems while utilities provide grid access and purchase electricity.
Introductory lecture on service innovation originally given to master students in an innovation and entrepreneurship course. Full video lecture available at: http://multimedie.adm.ntnu.no/mediasite/Viewer/?peid=e85576dd66ee4b8ebfa56923e262d9f3
The International Journal of Engineering and Science (The IJES)theijes
The International Journal of Engineering & Science is aimed at providing a platform for researchers, engineers, scientists, or educators to publish their original research results, to exchange new ideas, to disseminate information in innovative designs, engineering experiences and technological skills. It is also the Journal's objective to promote engineering and technology education. All papers submitted to the Journal will be blind peer-reviewed. Only original articles will be published.
The papers for publication in The International Journal of Engineering& Science are selected through rigorous peer reviews to ensure originality, timeliness, relevance, and readability.
This document provides an assessment of the value propositions and customer experiences of Apple and TalkTalk. It analyzes their value propositions using the IDIC model, which examines how they identify customers, differentiate customers, interact with customers, and customize offers. It also looks at how they manage customer complaints and the customer experience. Improvement strategies are developed, such as improving value propositions and customer experiences, drawing from CRM frameworks.
Class3 : 2nd reading assignment : "Knowledge Intensive Business Services As C...guest528308
This document presents a four-dimensional model for understanding service innovation. The four dimensions are: 1) the service concept, such as a new idea for organizing a solution to a problem, 2) the client interface, like new account management systems, 3) the service delivery system and organization, like introducing e-commerce capabilities, and 4) technological options, where information technology often plays an enabling role. The model is used to analyze the role of knowledge-intensive business services (KIBS) in innovation, arguing that some KIBS function as co-producers of innovation through their relationships with client firms.
This document provides an overview of supply chain management (SCM) through the development of a new framework of understanding. The framework aims to simplify the complex topic of SCM by unifying its different components and showing their relationships. It was developed by identifying key themes in SCM definitions, examining existing SCM frameworks and categorizations, and analyzing frameworks from other disciplines. The framework can guide researchers and practitioners to understand the field of SCM.
Service quality analysis and improving customer satisfaction in automobileIAEME Publication
This document summarizes a study that uses Quality Function Deployment (QFD) to analyze service quality and improve customer satisfaction in the automobile service industry. The study uses QFD to:
1) Identify key customer needs through a survey and prioritize them. Error-free vehicle service and on-time delivery were most important.
2) Define technical requirements to meet customer needs, such as express service, pick/drop options, and status monitoring.
3) Create a relationship matrix linking customer needs and technical requirements.
4) Evaluate current performance of technical requirements and set target values to meet customer expectations.
This document discusses service innovation in the water sector in the context of deregulation in England and Wales. It provides definitions of service innovation from literature and proposes a working definition for the water sector. Case studies and interviews with water sector experts explored interpretations of service innovation and examples being implemented. Key findings include that the water sector can improve fundamental business services like billing, customer relations, and data provision. Energy companies were cited as examples of innovative service models around pricing, monitoring, and communication that water companies could emulate.
G. Verstoep Service Innovation Businesspreneur Linked InGertjan Verstoep
The document discusses developing compelling service concepts centered around customer experiences. It emphasizes understanding customer insights, needs, and perspectives to innovate new service offerings. The document presents frameworks and models for conceptualizing service concepts, customer journeys, and business models to ensure services are meaningful and add value for customers. It also discusses disrupting traditional service systems and competing based on simplified, online-infused, service-focused propositions tailored to shifting customer domains.
The document discusses developing an information technology-enabled service quality model for life insurance services. It reviews literature on topics like information technology, service quality, customer satisfaction, and their relationships. It then describes the study's methodology, which used a survey to collect 221 responses from LIC customers in India. The responses were analyzed using SPSS to test hypotheses and develop a model relating information technology, service quality, and customer satisfaction for life insurance.
This document proposes a conceptual framework for assessing value-in-use from the customer's perspective. It reviews literature on customer perceived value and service-dominant logic, which emphasizes that value is co-created between the customer and provider through the customer's usage processes, not just determined by the provider. The framework relates service quality, usage process quality, and value-in-use. An exploratory study applies this framework in interviews with a maintenance service customer, finding support for the framework and revealing that customers can evaluate their own usage processes and articulate value at both the organizational and individual level over time.
1) The document proposes an ontology for e-business models to provide a shared understanding between managers and IT professionals.
2) It reviews literature on business models and identifies four key components: product innovation, customer relationships, infrastructure management, and financials.
3) The proposed ontology aims to highlight relevant e-business issues in these areas to help firms operate successfully online. It emphasizes understanding, sharing, and communicating business models.
This document provides an overview of a course on service quality and marketing. It outlines the course objectives, which include recognizing customer and provider perspectives, implementing marketing plans, and adapting to changing environments. The document also describes the topics that will be covered in the course, which include the characteristics of services, the marketing mix for services, service quality, and organizational change for services.
1) The document proposes a modeling approach for sensor-based, service-oriented business processes. It uses the Unified Modeling Language (UML) to model processes from high-level enterprise problems to low-level detailed processes.
2) The modeling approach is implemented using the Business Process Execution Language (BPEL) and analyzes business process integration between enterprises.
3) The proposed approach aims to improve process integration and interface between enterprises by exchanging necessary information to carry out activities according to the business process model in a peer-to-peer manner.
This document discusses service systems engineering (SSE). It defines SSE as a trans-disciplinary field that studies enterprise-customer interactions from socio-economic and technological perspectives to enable value co-creation. The document outlines several topics within SSE knowledge areas, including the fundamentals and properties of services, the scope and value of SSE, and SSE stages. It emphasizes that SSE requires collaboration between different stakeholders and resources to prioritize customer satisfaction in service design and delivery.
Technological Progress and Dealing With Clients In Consulting EnvironmentHabib Abou Saleh
This document discusses how disruptive technologies will change management consulting. It identifies mobile internet, automation, IoT, cloud computing and robotics as technologies that will significantly impact businesses. As these technologies provide clients new analytical capabilities, consulting firms will need to adopt new technologies to provide differentiated insights. Clients will also demand more specialized expertise. The rise of virtual work will change how consulting services are delivered and how clients and consultants interact. To survive, consulting firms will need to continually reinvent themselves by embracing new technologies, specializing expertise, standardizing prices, and adapting to virtual environments.
This document discusses how project management needs to evolve to address changing trends in the business environment. Traditional methods of stakeholder management, communication, and human resources management need to transform into deeper client engagement, articulating client value, and talent management. Project delivery also needs to incorporate more consulting approaches. Additionally, innovation, consulting skills, and social technologies can help augment traditional project management. These changes will help organizations better engage customers, deliver higher value, and ensure project success in today's dynamic marketplace.
This document provides an introduction to operations management. It defines operations management as managing the resources that produce and deliver goods and services. It distinguishes between manufacturing operations, which produce physical goods, and service operations, which produce intangible outputs. Key differences between manufacturing and services are discussed, including the inability to store services as inventory. The document also presents a systems view of operations management, describing an operations system as having inputs, a transformation process, and outputs. It classifies resources as either transforming resources that act on other elements or transformed resources that are the purpose of the system.
Heineken uses a Product-Service System (PSS) business model that is product-oriented and focused on creating value. The company's sustainability program called "Brewing a Better World" integrates sustainability into its strategy. This includes making the supply chain more sustainable by helping suppliers, especially in Africa, become more efficient and adopt practices like new seed varieties. It also focuses on reducing resources used in brewing like water, CO2 emissions, and electricity through initiatives like its Total Productive Maintenance Program. While Heineken works to build sustainable supplier relationships, it could better communicate and market these efforts to increase visibility and trust with stakeholders.
The document discusses outcome-based pricing for technology services. It defines three types of outcomes that can be delivered: 1) consumption-based, 2) key performance indicator (KPI)-based, and 3) financial-based. It also distinguishes between revenue streams, offer types, pricing models, and pricing mechanisms. Traditional technology companies derive most revenue from products, annual services contracts, and implementation projects. However, the industry is shifting from an "asset" focus to an "outcome" focus, where companies bundle products and services to guarantee target business outcomes for customers.
This document discusses customer service practices at Sainsbury's Supermarket. It will:
1) Identify and describe different types of customers and their needs.
2) Identify and analyze the skills required for customer service.
3) Describe how Sainsbury's incorporates consumer protection into its customer service policy and uses customer service to meet customer needs and strategic objectives.
The report will show how Sainsbury's focuses on investing in people, planning skills development, taking action to develop necessary skills, and evaluating training outcomes to achieve business goals.
A Contract For Knowledge Management ServicesPamela Wright
The document outlines the key areas covered in the CPA licensure examination for management advisory services. It discusses management accounting-related services, financial management services, capital budgeting concepts and techniques, project feasibility studies, and management consulting services. The areas of management accounting include costing techniques, budgeting, responsibility accounting, transfer pricing, and performance evaluation. Capital budgeting concepts include NPV, IRR, payback period, and risk analysis methods. Management consulting services involve problem identification and definition, data collection, analysis of alternatives, and presentation of recommendations.
SD101: An Introduction to Innovation Through DesignHuddle Innovation
Traditional approaches to innovation are largely a product of a manufacturing mindset - a hangover from our industrial past.
Today, most developed economies are dominated by the service sector, with services accounting for 70%-80% of GDP. This has lead to the emergence of what Pine and Gilmour (1998) have dubbed the ‘experience economy’. Service design offers organizations a toolset for creating better service experiences through holistic, cross-departmental co-creation.
Industry - and firm-level research into both innovations and productivity has long been limited to manufacturing. With this paper, we aim to contribute to the stream of literature that aims at extending the scope of such investigations to the services industry. To this end we analyze the innovation strategies in several service sectors in Poland in 2008 and examine their relationship to productivity. Our results show that service firms differ considerably in their innovation strategies, but that most of those strategies lead to productivity gains.
Authored by: Wojciech Grabowski, Krzysztof Szczygielski
Published in 2012
Data-Driven Simulation-Enhanced optimization of Service operationsSudhendu Rai
This paper describes a systematic six-step data-driven simulation-based methodology for optimizing people-based service systems on a large distributed scale that exhibit high variety and variability. The methodology is exemplified
through its application within the printing services industry where it has been successfully deployed by Xerox Corporation across small, mid-sized and large print shops generating over $250 million in profits across the customer value chain. Each
step of the methodology consisting of innovative concepts co-development and testing in partnership with customers, development of software and hardware tools to implement the innovative concepts, establishment of work-process and practices for customer-engagement and service implementation, creation of training and infrastructure for large scale deployment, integration of the innovative offering within the framework of existing corporate offerings and lastly the monitoring and deployment of the financial and operational metrics for estimating the return-on investment and the continual renewal of the offering are described in detail.
Open Business innovation for utilities - Low fidelity prototypeSaad Jamil
The document provides information on a proposed low-fidelity prototype for an open business innovation platform to help small and medium utilities and enterprises. It discusses customer segments, pains and gains, proposed offerings, cost structure, and service model. The platform would provide shared services, collaboration opportunities, and educational resources to help clients innovate faster and at lower cost through open innovation and joint projects.
The document provides information on a proposed low-fidelity prototype for an open business innovation platform to help small and medium utilities and enterprises. It discusses customer segments, pains and gains, proposed offerings, cost structure, and service model. The platform would provide shared services, collaboration opportunities, and educational resources to help clients innovate faster and at lower cost through open innovation and joint projects.
This document discusses key concepts in services marketing. It begins by defining services and their components, which include the physical product, service product, service environment, and service delivery.
It then covers characteristics of services such as intangibility, inseparability, and perishability. Various classifications of services are presented, including by type of customer (consumer vs industrial) and nature of the service.
The marketing mix framework is expanded for services to include people, processes, and physical evidence in addition to the traditional 4Ps. Product, price, place, promotion, and their application to services are described. The role of technology in improving service processes is also covered.
The document concludes with a discussion of managing demand and
This document discusses key concepts in services marketing. It begins by defining services and their components, which include the physical product, service product, service environment, and service delivery.
It then covers characteristics of services such as intangibility, inseparability, and perishability. Various classifications of services are presented, including those based on the nature of the service act and scope for customization.
The marketing mix or "7Ps" for services is examined in depth, covering product, price, promotion, place, people, physical evidence, and processes. Other topics include managing demand and supply challenges in services, technology's role in improving service productivity, and blueprinting service processes. Building service aspirations and designing service processes are
Inceku proposes a contact center and business processing services solution to facilitate key processes for Silver Dynamic Technologies, including client engagement, installation logistics, and customer service. The solution would involve managing business processes, quality assurance, and performance. It would utilize workforce management, technology/telephony infrastructure, and management information systems. The proposal provides an overview of Inceku's operating model and capabilities to deliver an outsourced solution handling an estimated 50,000 calls per month to support the installation of 300,000 meters over 24 months for Silver Dynamic Technologies.
Are Manufacturing Companies Ready to Go Digital?Capgemini
Manufacturing companies have traditionally been slow to react to the advent of digital technologies and their related impact across the manufacturing value chain and operating model. While there are a few manufacturing companies that have made rapid advances in deriving significant benefits from digital, their number is still small.
For instance, in a recent industry survey, only 25% of the interviewed executives believed that the manufacturing sector would be highly impacted by digital transformation over the next five years. Our study found that digital innovation is critical when it comes to addressing manufacturers’ key business drivers and creating value.
Organisational productivity is about assessing and improving the efficiency and effectiveness of public and private sector organisations. Four productivity models are explained and linked to a wide range of productivity improvement methodologies.
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1. Faculty of Computing, Engineering
and Technology
Module – Service Science
(CE00822-3)
Innovation is the key for competitiveness in organizations. Discuss
how we can promote service innovation.
For the attention of Professor Lorna Uden
3. Contents
Abstract..........................................................................................................................4
1.0 The meaning of service and service system.............................................................4
2.0 Service economy......................................................................................................5
3.0 Service competition..................................................................................................6
4.0 The meaning of innovation......................................................................................6
4.1 Service Innovation................................................................................................6
4.2Factors affecting service Innovation.....................................................................7
4.2.1 Service-value chain.......................................................................................7
4.2.2 Service Culture..............................................................................................7
5.0 Strategic for service innovation................................................................................9
5.1 Value Creation......................................................................................................9
5.1.1 Value creating through client-driven modes...............................................10
5.1.2 Value creation from the Service Provider Perspective................................11
5.1.3 Balanced modes of Value Co-Creation.......................................................11
5.2 2-D of innovation model ...................................................................................11
5.2.1 New Service Design....................................................................................12
5.2.2 New Service Delivery.................................................................................12
5.3 Knowledge management for service innovation capability...............................12
5.3.1 Managing knowledge for customers..........................................................13
5.3.2 Extracting the customer knowledge............................................................13
5.3.3 Co-Create Knowledge with the customer...................................................13
6.0 Discussion on how service innovation can be promoted.......................................14
6.1 Education............................................................................................................14
6.2 Business..............................................................................................................15
6.2.1 Creating T-Shape professional culture .......................................................15
6.2.2 Relooking at previous system and propose a new service design...............15
6.2.3 Develop a collaborative for value creation..................................................15
6.2.4 Creating a roadmap of service innovation...................................................16
7.0 Conclusion..............................................................................................................16
9.0 References..............................................................................................................16
4. Abstract
In the modern economy, service is about building a collaboration relationship between
the supplier and the customer, in which the creation of value occurs between both
parties. Thus, both customer and supplier play an important role in a service system.
The value created in a service system is the co-creation value, where the key
characteristic is to differentiate service system from a traditional economic transaction
where the client work as a co-producer in the value chain of service innovation. This
reports examine the differentiation of a service system from a traditional economic to
a transaction system, and the value chain of the service system is then break into three
components such as supplier, employee, and customer. Thus, identify the areas of
potential of innovation through a new service development framework. Finally, is to
determine how service innovation can be promoted through strategy business models,
customer’s experiential services, and technologies.
1.0 The meaning of service and service system
Service is defined as the application of competences (knowledge and skills) for the
benefit of another party (Vargo and Lusch, 2006). Service involves at least two
entities, on one hand in applying competence and another integrating the applied
competences with other resources which form a value-coceration in the value chain
network and determining benefit. These interacting entities are known as service
systems. A service system can be defined as a dynamic value-cocreation configuration
of resources, including people organizations, shared information (language, laws,
measures, methods), and technology, all connected internally and externally to other
service systems by value proposition (Spohrer et al, 2007). In a service system,
customer play a key role where the service system is dominated by the relationship
between organization, supplier and client. In the service supply chain model, the
stakeholders interact with each other to create value. From the aspect of systems,
service systems include both systematic parts such as clients, suppliers, and
employees ( ). The key characteristics of a service system is the interaction with the
clients as participants in the service process, not pure value transformation active ( )
as shown in Figure 1 and 2.
5. Manufacturing
input process output customer
Supplier
Figure 1. Traditional transaction system model
Customer feedback
Manufacturing
input process output customer
Supplier
Figure 2. Service transaction system model
2.0 Service economy
In the competitive market today, firms and industrial who innovate by service acumen
plays a significant role in improving the aggregate economy attributes and values. The
service economy is designed in a structural way where different sector offer different
services to the public and businesses. Thus, service systems are growing rapidly and
have become an ever greater part of value creation in modern economies. As
discussed earlier on, large firms and manufacturing industrial should change their
traditional views of value creation into a service value creation chain. Microsoft for
example, they were offering Window Office to the customer as a product, which
rather than co-creating value by the customer and this has caused them to lose their
potential customer in the changing service market against their rival such as Open
Source Software like Linux. However, in improving the supply chain of the
Microsoft, the management has reconfigure their traditional supply chain by
integrating customer ideas for developing new service product, thus offering various
product such as Window 7 Home & Professional.
From the observation above, it can be stated that the demand for service innovation in
the economy is highly needed to impact the service economy. Therefore, it is
important that organization study their business process and management which
6. emphasis on the potential strength of the business structure will be taken into full
consideration. For example, by producing an innovative strategy with value
proposition, innovative business model and a well structural service culture in the
organization. In the article of “Innovation in the Service Economy” written by Gallouj
(2002), he describes that:
“.. modern economies are both service economies and economies of innovation.
Paradoxically, there are not regarded as economies of innovation in services that is as
economies in which service firms’ innovation efforts are proportionate to their
contribution from the major economies aggregate.
3.0 Service competition
In the book of “The Future of Competition”, Prahalad and Ramaswanmy (2004) focus
on co-creating unique value together with customers and argue that ‘value is now
centred in the experience of consumers’ (p. 137) and not just embedded in products
and services. Customer delight and customer perceived value are linked to memorable
and favourable customer experiences (Pine and Gilmore 1999; Johnson and
Gustafson; Berry et al. 2002).
4.0 The meaning of innovation
Innovation can be defined as the creation and implementation of new process,
products, sources, and method of delivery, which results in significant improvement
in outcome, efficiency, effectiveness, and quality (Mulgan. G & Albury, D, 2003).
While other definitions are innovation is the successful exploitation of new ideas
(Innovation unit, department of trade & industry, 2004). Innovation can be defined as
a new ways of co-solving customer problems, whether they are fully recognized or
completely latent to the customer (Michel; Brown; Gallan, 2008).
4.1 Service Innovation
Service innovation refers to new or considerably changed service concepts or service
delivery process that deliver added value to the client by means of new or improved
solutions to a problem (Tidd, Hull, 2003). Thus, service innovation is a methods of
improving performance to obtain a desire opportunity for consumption or consumer
7. services. Based on the key dimensions of services that summarized by XinHui (2008),
Figure 3 illustrate the four dimensional model of innovation in service adapted from
Den Hortog (2000).
4.2Factors affecting service Innovation
4.2.1 Service-value chain
Authors such as Heskett (1994), presented the service-value chain, where the
characteristics of value chain is to analyzing the collaboration between two
organization for achieving value, Customer Loyalty, Customer Satisfaction, and the
value that perceived by customer based on the service offering. In the basic market, to
manage a service, an organizations need to know how to lock-in their customer
through offering satisfaction service which is influenced by service value. These
satisfactions may be originated from IT investment, training and knowledge
exchange.
Figure X: The service value chain model
4.2.2 Service Culture
In the service firms, service culture is the main driver for organization improvement
than in the manufacturing industry. According to Lyons (2007), the differences
between product and service innovation expresses the importance of fostering a
service innovation culture which is consistent, coherent, and comprehensive presence
of values and norms that promote creative ideas and implementation. Another authors
such as Shouming & Yang Zhang (2009) stated that service culture is based on value-
8. centric and aim for promoting the core competitiveness of the enterprise and creating
the loyalty of the customer. As traditional service move to service-oriented culture,
different aspects in service culture, promote innovation in technology, business,
organization and demand. These innovation are mutual influenced and interacted, all
build up the main body of service innovation. The shape of service innovation
management, will absolutely impact the company service value. To understand how
service culture and service-value chain impact on service innovation, figure x
illustrate the model of it
Figure 2: The impact of service culture on service innovation
9. 5.0 Strategic for service innovation
5.1 Value Creation
At the beginning of 2007, IBM’s Jim Spohrer announced, “Service is value co-
creation”. (Spohrer, 2007). The purpose of value co-creation is to stimulate change.
Value creation occurs when there is a strategic agreement between the client and the
service provider. This agreement exist when both the client and the service provider
have sufficiently related service innovation strategies.
Most service provision requires a high degree of interaction between the client and
service provider, especially in knowledge-intensive fields such as the information
service business (Bettercourt et al, 2002). According to the research done by Moller;
Rajala; and Westerlund (2008), their research show that providers who have either a
strong technology orientation or who wish to create high value-added services are the
most willing to enter into close-relationship with their clients. Through their study,
they also noticed that provider who focused on operational efficiency, aim at value
creation though more distant, transactional customer relationship. In order for an
organization to be competitive in the market, it is crucial that they develop a
successful innovations in client-provider relationship by recognizing each other’s
value-creating strategies. These value-creating is separate into three strategies
ranging from establish service to incremental and radical service innovation
development, as illustrated in Figure X which is adapted from (Moller et al; 2008).
10. Figure X. Basic Interaction Modes in Service Co-Creation
The service co-creation framework is used to analyzed service development, focusing
on the client-provider interaction modes in service innovation (Moller et al; 2008).
The modes are classified into three categories which is balance, provider-driven and
implausible.
5.1.1 Value creating through client-driven modes
In these modes, it is concern about the collaboration of knowledge exchange between
the client and the provider. As the demand of customers need increase, service
provider may hard to met the customer expectation and provide competencies that can
met their satisfaction. Having a strong relationship with the client, it will help the
provider to produce an innovative service packages for their client. Thus, it may
reduce the risk of client going for other service provider which offers different types
of service offering or packages.
In the case of creation of new service innovations, it is sometimes difficult to
differentiate the roles of “customer” and “service provider”. For example, Facebook
often add new features and contents to their Social Web-Based channel which is
grounded on client’s request. While Facebook original solutions could be
characterized as provider-driven, its drive to also cover the needs of customer
involvement in its service strategy. By inputting rich content into the social network,
Facebook developer adds service modules to the Facebook.com in accordance with
11. clients’ requests by offering rich applications and information for the client.
According to Moller; Rajala; and Westerlund (2008), successful client-driven
innovation is derived from the client’s ability to demand services and the service
provider’s ability to meet these requirements in incremental but continuous
development.
5.1.2 Value creation from the Service Provider Perspective
Well known and large service provider such as P&G, Google, Microsoft and Nokia
shares a common goal in value creation by creating a business model that are typically
focused on the service co-creation. Authors such as Flint, Woodruff and Fisher (2002)
argued that when service providers design new service, they have to realize that it is
the benefits that customer device from the service, not the offering as such, which add
perceived value for the clients. For example, Microsoft create new operating system
which the innovation activity does not create extra value for the clients. However, in
redesign their service offering, they providing alternative version of its Window
operating system package, such as the Window 7 Home and Professional Editions.
5.1.3 Balanced modes of Value Co-Creation
5.2 2-D of innovation model
At the firm level business system, the key processes for developing customer-oriented
innovative services are new service design, deployment, and delivery (i.e, the 3D). As
service provider have create the value proposition for the customer, the next stage is
to identify ways to differentiate their servicer offerings. In the traditional economy,
new service development often used on “product development”. But on the
transactional service system, it is more service oriented where it focus more of
collaborative. So, firms develop new service concepts according to customer
preferences and customer value propositions. Next, linking the newly developed
service concepts to the market segment to gain which market has a pontential
customer. The final step is the efficiency of the service offering by analyzing the
quality of the service and the experience that perceived by the customer.
12. 5.2.1 New Service Design
Having new design will help organization to achieve competitive advantage in term of
differentiation of service offering. A new way of generating the revenue can be
created when the new service design involve customer as the co-producer and co-
creator in the new service development process. However, this raised an issues as
seen below:
1. What is the value and services that customer want?
2. Is the value concept consistent with the value proposition?
3. How to identify customer value and propose a scope of offerings?
The new service design process include as following:
1. Generating the ideas based on customer input
2. Identify the market segment
3. Developing new business model through market analysis and customer
involvement
4. Positioning the new service offering by having customer participate in the service
design process
5.2.2 New Service Delivery
5.3 Knowledge management for service innovation capability
Knowledge management is part of value creation process in achieving service
innovation. In the modern economy, especially those firms using technology often
provides potential technology to manage customer knowledge to make customer
knowledge leading to innovation, and enhance service innovation capability. In
service innovation process, customer collaborate with the service provider for
exchange of knowledge for innovation capability. As mentioned by Sampson (),
customer always the co-producer in a service process, where they indentify and
demand for innovation change. Thus, as customer participate in this service process,
they also influence the quality of the innovation service. There are three ways how
organization can manage the customer knowledge.
13. 5.3.1 Managing knowledge for customers
According to Michael Gibbert (2002), he proposed that the customer knowledge
management is about the management of innovation and the growing demand of it.
By managing knowledge for the customer, organization would be able to point out the
quality of their service. Thus, helping them to make decision easily by understanding
customer needs. For example like Amazon.com , they have a intelligent knowledge
system tools such as customer tracking which used to collects information from
registered user during their visit to the web site. In order for them to promote new
service innovation, Amazon offers new service by helping the users to search through
a book without any delay, as the system has a database tracking on the current user
preference. Thus having this system, it will also offer new knowledge to the new
customer on what current customer have bought, and their review on the
books(Layton ,2009).
5.3.2 Extracting the customer knowledge
Knowledge extraction is crucial in obtaining customer experience in a service process.
Every opinions and suggestions that given by the customer will help to evaluate the
value that they perceived from the service provider. From the case of Reebok, getting
the information that manage customers relative information and knowledge from
customer can improve service innovation’s efficiency and amount. So, in product or
service innovation, idea generation, even product or service development, customer
should be encourage to participate in service innovation process, and use knowledge
from customers to improve company’s service innovation capability.
5.3.3 Co-Create Knowledge with the customer
Co-create knowledge with the customer mean the process of involving customer into
the innovation process which often based from the perspective of customer
experience. Organization who exchange knowledge with their customer, will able to
deliver new service offering, thus able to differentiate their total service packages
different from their rivals. Google for example, exchange their knowledge with the
internet users for new service development such as Google Map, Gmail, Spam
solutions and etc. So, having customer interact in the service process, and their
innovative knowledge and creative ideas will help to promote new service
development that organization need to provide.
14. To summarize the above analyses, Figure X shows a relationship between the
customer knowledge management and service innovation capability (Hongqi &
Ruoyu, 2008).
Figure X: Relationship between customer knowledge management and service
innovation capability
6.0 Discussion on how service innovation can be
promoted
After analyzing the factors and strategy of achieving service innovation, now the next
steps is how to promote the service innovation to the customer. To understand how
service innovation can be promoted, it is important to look on the different sector in
the service market.
6.1 Education
In order to promote service innovation as an education, it can be achieved by adding
SSME qualification to an existing deep home discipline of study. Staffordshire
University for example, previously they was focusing on the subjects of computer
science rather than service science. Moreover, all the University that has establish the
field of service science was from top elite university. However, as competition rise in
the education industry, some of the professors and researcher in the Staffordshire
University has develop a SSME programme by collaborating with IBM to offers the
15. SSME programme to student. So, as student is being innovate with service mindset,
they will able to work effectively in innovating ideas, designing complex system and
thus prepared to succeed in the 21st century service-driven globally integrated
economy.
6.2 Business
6.2.1 Creating T-Shape professional culture
Businesses should define career paths for T-Shape professionals and indicate their
preference for SSME qualifications in recruitment. This would demonstrate the
demand for academic programmes and encourage the formation of interdisciplinary
Service Science communities. Furthermore, organization should emphasize a T-Shape
working culture, where employees are always able to generate ideas for new service
innovation. Such culture can be taken from the example of Google, where the workers
was given a priviledge to find problems from a service system range from service
industry to manufacturing industries.
6.2.2 Relooking at previous system and propose a new service
design
Building a new service design will require the businesses to participate in a complex
service system. For example, (a) how to make optimal investment for service
innovation, (b) how to scale up margins as service revenue increase, (c) how to
systematically reduce the complexity of service systems, and (d) how to devise
measurements system that can be used internally and share externally to protect
privacy and preserve competitive advantage (IFM; IBM, 2008).
6.2.3 Develop a collaborative for value creation
Small and Medium Enterprise can collaborate with the IBM in learning the
fundamental of Service Science and the latest research and tools use to develop a
service system that can impact the businesses. For example, NHS collaborated with
CSC consulting group for service innovation. Through the collaboration, CSC
consultants gather the clients need and participate in the service development process
of NHS. Here, it can be stated that there is an exchange of knowledge for value
creation, which can help businesses to stimulate rapid progress.
16. 6.2.4 Creating a roadmap of service innovation
As sustainability becomes an increasingly urgent global concern, businesses should
take the opportunity to expand the definition of stakeholder value to include new
measures. More emphasis should be placed on the balance between efficiency,
effectiveness and sustainability. Roadmaps for service innovation should include
update performance measures and adjust mechanism of measurement.
7.0 Conclusion
Although there are many ways that service innovation can be promote, it is important
that a service innovation should be looks in perspective of service dominant logic
where collaborative and value-creating is about. Furthermore, it is important that new
service development should focus on a service-oriented process. This means that
customer should be involved in the ideas generation process not just the suppliers.
Finally, service innovation can be promoted through the customer knowledge and
theirs word of mouths. As customer consume a service product, he/she is experiencing
the service and therefore able to pass the new knowledge to another customer. In
another words, it is a source of advertising which cost can be reduced rather than
using heavy media application to advertise.
9.0 References
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