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Service / Product Innovation,[object Object],Managing the solution specific investments in innovation,[object Object],Anand Subramaniam,[object Object]
2,[object Object],“I once knew a chap who had a system of just hanging the baby on the clothes line to dry and he was greatly admired by his fellow citizens for having discovered a wonderful innovation on changing a diaper.” ,[object Object],- Damon Runyon ,[object Object]
3,[object Object],Highlights,[object Object],Service Innovation,[object Object],Product Innovation,[object Object],New Business Model Innovation,[object Object],Project Portfolio Management,[object Object]
New Service Development (NSD),[object Object]
Innovation - New Service Development,[object Object],Involves implementation & improvement of information technology,[object Object],Solution specific investments in innovation,[object Object],More on investments in human capital (skills, knowledge) & org. changes than on tangible innovation,[object Object],SMEs produce more innovation but at lower rates than large service companies & are less frequent adopters,[object Object],Majority of service providers are SMEs, which may face particular impediments in innovation,[object Object],Service Innovation,[object Object],Heavy use of trademark protection & brand loyalty,[object Object],Traditional view that services are less innovative than manufacturing & tend not to have R & D,[object Object],Service firms often implement patented technologies & so transactions costs matter,[object Object],Difficult to measure innovation inputs and outputs,[object Object],5,[object Object]
Traditional ,[object Object],Small & weak technologically, with  un-demanding customers & limited managerial skills,[object Object],System Firms,[object Object],Large & sophisticated: (banks, retailers,,[object Object],insurers, airlines) with heavy dependence on technology & excellent managerial skills,[object Object],Knowledge Intensive Firms,[object Object],All sizes (legal & accounting,,[object Object],engineering & design, advertising, market research & management,[object Object],Consultancy)  with heavy dependence on professional employees & close,[object Object],connections to customers,[object Object],Innovation - Service Firms Types,[object Object]
Standardisation of the Service,[object Object],Mix of Physical Goods and Intangible Services,[object Object],Customer Contact (high / low level) in Delivering the Service,[object Object],New Services – Design Focus,[object Object]
Service Innovation - Levels,[object Object],8,[object Object],Radical,[object Object],[object Object]
Start-up Business: new service for existing market
New Services for the Market Presently Served: new services to customers of an organisationIncremental,[object Object],[object Object]
Service Improvements: changes in features of currently offered service
Style Changes: modest visible changes in appearances,[object Object]
Service Innovation Charter ,[object Object],10,[object Object],Problem Statement : What service related innovation  policy seeks to achieve?,[object Object],Outcomes :,[object Object],What outcomes do the service users / stakeholders seek to achieve from the service policy program? ,[object Object],Goal : What is the aim / impact of the service policy program ? ,[object Object],Rationale : ,[object Object],Why undertake this program & what results are expected?,[object Object],Outputs ,[object Object],Verifiable products or services related to  innovation policy,[object Object],Resources,[object Object],Money, Materials, Methods, Measures,,[object Object],Machines,  Manpower ,[object Object],Tasks  ,[object Object],Tasks and activities under-taken to achieve the desire results / targets,[object Object],Assumptions:,[object Object],What factors are necessary and are in place?,[object Object],External Factors : What external factors influence the service program policy results / outcomes? ,[object Object]
Service Innovation – Interrelationship,[object Object],11,[object Object],Business Models ,[object Object],Substantial change how revenues and profits earned (business model); often accompanied by organisational changes /  restructure and extend the enterprise,[object Object],Process / Systems / Operations,[object Object],Changes in how information is exchanged between customers & service providers and improve effectiveness and efficiency of core functional areas,[object Object],Products /  Services / Markets,[object Object],Introduction of entirely new services – customer focused / go-to market strategies,[object Object],All three are interrelated and is an iterative process,[object Object]
Integrated Service Innovation System,[object Object],12,[object Object],Capacity,[object Object],& Manpower,[object Object],Planning,,[object Object],Training ,[object Object],Employees &,[object Object],Stockholders,[object Object],Value,[object Object],Value,[object Object],Value,[object Object],Community,[object Object],Service,[object Object],Provider,[object Object],Customer,[object Object],Value,[object Object],Facility,[object Object],Location,[object Object],& Design,[object Object],Service,[object Object],Experience,[object Object],Partners,[object Object],Governance,[object Object],Social,[object Object],Networking,[object Object],Competition,[object Object],Competitive,[object Object],Strategy,[object Object],Customer,[object Object],Flow &,[object Object],Service,[object Object],Delivery,[object Object],Service,[object Object],Concept,[object Object],Realised,[object Object],Market,[object Object],Segmentation,[object Object],Society,[object Object],Operating,[object Object],Strategy,[object Object],Society,[object Object]
New Services - Stage-gate Process,[object Object],13,[object Object],Customers,[object Object],Generate & assemble ideas,[object Object],Immerse  with Customers,[object Object],Focus your energies,[object Object],Gate,[object Object],Strategy, Organisation, Culture fit,[object Object],Gate,[object Object],Design service solution,[object Object],Gate,[object Object],Evaluate / Feedback into NSD,[object Object],Market Test / Launch,[object Object],Gate,[object Object],Gate,[object Object]
Knowledge Protection Methods,[object Object],14,[object Object]
New Product Development (NPD),[object Object]
Autonomous design and development teams,[object Object],Improved time to market and cost,[object Object],Simultaneous (concurrent) engineering ,[object Object],Continuous interaction between product / service design and product process,[object Object],Computer-aided design / computer-aided  manufacturing (CAD / CAM),[object Object],Generate many views of parts, rotate images, magnify views, and check for interference between parts,[object Object],New Product – Design Focus,[object Object]
New Product - Roadmap,[object Object],Technical & economic feasibility studies,[object Object],Prototype design (form, fit, function),[object Object],Performance testing  / redesign of prototype,[object Object],Market surveys, sensing & economic evaluation  of the prototype,[object Object],Design of production model (product evolution) ,[object Object],Market / performance / process testing & economic evaluation of production model,[object Object],Continuous modification of production model (adapt to changes in market, IT),[object Object]
New Product – Stage Gate Process,[object Object],18,[object Object]
New Product - Inter-disciplinary,[object Object],19,[object Object]
New Business Model Innovation,[object Object]
Innovation - Business Model Process,[object Object],Formulate value proposition,  i.e. the value delivered to the customer by the product based on specific technology,[object Object],Identify marketsegment, ie. users to whom the technology brings value and performs the job to be done,[object Object],Define structure of the value chain, required for the product creation and distribution,[object Object],Specify the mechanism of profit creation and evaluate product coststructure and target margin,[object Object],Describe the company position in the value network that connects  suppliers and customers, including identification of potential alternative producers and competitors,[object Object],Formulate competitive strategy enabling to the innovative company to gain and keep competitive advantage,[object Object]
Innovation – Technology Significance,[object Object],Using extensive use of technology where it becomes difficult to replicate and can often be protected (patented),[object Object],First mover advantage,[object Object],High level of scalability,[object Object],Technology,[object Object],High level of initial risk which can be translated into high levels of return ,[object Object],Barriers to entry,[object Object],Adding value for to customers,[object Object],22,[object Object]
Business Model & Technological Innovation,[object Object],23,[object Object],Disruptive,[object Object],Sustain,[object Object],[object Object]
Enhance market share for existing players
Fill an existing unmet demand

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