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  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Today’s	
  workshop	
  is	
  designed	
  to	
  stretch	
  thinking	
  
using	
  specific	
  insights	
  as	
  s9mulus	
  to	
  change	
  views	
  
Morning	
   A=ernoon	
  
S9mulate	
   Priori9ze	
   Challenge	
   Focus	
  and	
  Next	
  Steps	
  
Clear	
  Outputs	
  Informed	
  Inputs	
  
External	
  	
  
S9mulus	
  
Reflect	
  &	
  
Review	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
During	
  the	
  day	
  we	
  will	
  cover	
  four	
  key	
  areas	
  and	
  
discuss	
  a	
  number	
  of	
  service	
  innova9on	
  models	
  
1.  Context	
  for	
  Service	
  Innova2on:	
  
§  History,	
  leading	
  examples	
  and	
  evolving	
  framework	
  of	
  progress	
  
2.  Case	
  Studies	
  :	
  
§  Examples	
  of	
  successful	
  service	
  innova9on	
  to	
  discuss	
  and	
  explore	
  
3.  Business	
  Impact:	
  
§  Discussion	
  of	
  which	
  examples	
  have	
  greatest	
  resonance	
  and	
  impact	
  
4.  Tools	
  to	
  Rethink	
  Service	
  Innova2on:	
  
§  Four	
  approaches	
  for	
  iden9fy	
  game-­‐changing	
  service	
  concepts	
  
	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
These	
  four	
  phases	
  of	
  learning	
  are	
  used	
  during	
  the	
  day	
  
to	
  build	
  up	
  knowledge,	
  insight	
  and	
  applica9on	
  
Morning	
   A=ernoon	
  
S9mulate	
   Priori9ze	
   Challenge	
   Focus	
  and	
  Next	
  Steps	
  
Clear	
  Outputs	
  Informed	
  Inputs	
  
External	
  	
  
S9mulus	
  
Reflect	
  &	
  
Review	
  
1:	
  Context	
  
2:	
  Case	
  Studies	
  
3:	
  Business	
  Impact	
  
4:	
  Tools	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
NEXT	
  GENERATION	
  SERVICE	
  INNOVATION:	
  
THE	
  CONTEXT	
  FOR	
  SERVICE	
  INNOVATION	
  	
  
	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
The	
  first	
  session	
  sets	
  the	
  scene	
  for	
  service	
  innova9on,	
  
its	
  scope,	
  its	
  development	
  and	
  its	
  future	
  poten9al	
  
Recogni9on	
  of	
  
Service	
  
Innova9on	
  
•  Inclusion	
  of	
  SI	
  in	
  R&D	
  
•  Three	
  Key	
  Areas:	
  
•  New	
  service	
  
development	
  
•  Improved	
  service	
  
processes	
  
•  Innova9on	
  in	
  service	
  
firms	
  
Different	
  
Dimensions	
  
•  The	
  Service	
  Concept	
  
•  The	
  Client	
  Interface	
  
•  The	
  Delivery	
  System	
  
•  Technology	
  Op9ons	
  
•  Service	
  Dominant	
  Logic	
  
Next	
  Genera9on	
  
Service	
  
Innova9on	
  
•  Co-­‐crea9on	
  
•  Web	
  2.0	
  enabled	
  
•  New	
  Business	
  Models	
  
•  New	
  Value	
  Shi=s	
  
Core	
  Service	
  Innova9on	
  Focus	
  is	
  on	
  “doing	
  be*er	
  things	
  and	
  doing	
  things	
  be*er”	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Service	
  innova9on	
  as	
  a	
  specific	
  focus	
  has	
  now	
  been	
  
on	
  the	
  scene	
  in	
  different	
  views	
  for	
  over	
  twenty	
  years	
  
Three	
  types	
  of	
  service	
  innova2on:	
  Ian	
  Miles	
  	
  -­‐	
  Univ.	
  of	
  Manchester	
  (1993)	
  
§  New	
  service	
  development	
  
§  New	
  or	
  improved	
  service	
  products	
  –	
  Axel	
  Johne	
  and	
  Chris	
  Storey	
  etc	
  
§  Improved	
  service	
  processes	
  
§  New	
  or	
  improved	
  ways	
  of	
  designing	
  or	
  delivering	
  services	
  
§  Innova2on	
  in	
  service	
  firms	
  
§  Organisa9onal	
  innova9on	
  -­‐	
  processes	
  and	
  management	
  of	
  innova9on	
  
Key	
  components	
  of	
  service	
  innova2on:	
  TEKES	
  	
  
§  Replicable	
  elements	
  
§  Benefit	
  to	
  producer	
  and	
  customer	
  
§  Changes	
  to	
  customer	
  interface,	
  distribu9on,	
  forms	
  of	
  opera9on	
  etc.	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
In	
  recent	
  years	
  several	
  others	
  in	
  have	
  sought	
  to	
  
classify	
  the	
  key	
  dimensions	
  of	
  service	
  innova9on	
  	
  
Four	
  Dimensions	
  of	
  Service	
  Innova2on:	
  Den	
  Hertog	
  (2007)	
  
§  The	
  Service	
  Concept	
  
	
  e.g.	
  new	
  value	
  proposi9on,	
  new	
  retail	
  format	
  
§  The	
  Client	
  Interface	
  
	
  e.g.	
  par9cipa9on	
  of	
  customers,	
  changes	
  in	
  roles	
  
§  The	
  Delivery	
  System	
  
e.g.	
  linkage	
  between	
  provider	
  and	
  customer,	
  job	
  roles	
  
§  Technology	
  Op2ons	
  
	
  e.g.	
  more	
  effec9ve	
  informa9on	
  processing,	
  smart	
  communica9ons	
  
	
  
Others	
  views	
  to	
  note:	
  Henry	
  Chesbrough,	
  Tony	
  Ulwick.	
  	
  
Service	
  Innova9on	
  Focus	
  is	
  on	
  “doing	
  be*er	
  things	
  and	
  doing	
  things	
  be*er”	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Service	
  Dominant	
  Logic	
  is	
  a	
  good	
  way	
  of	
  thinking	
  
about	
  the	
  change	
  adopted	
  by	
  a	
  some	
  organisa9ons	
  
Goods	
  Dominant	
  Logic	
   Service	
  Dominant	
  Logic	
  
Focus	
   Goods	
   Services	
  
Experience	
   Tangible	
   Intangible	
  
Resources	
   Operand	
   Operant	
  
Informa9on	
   Asymmetric	
   Symmetric	
  
Dialogue	
   Propaganda	
   Conversa9on	
  
Value	
  Crea9on	
   Value	
  Added	
   Value	
  Proposi9on	
  
Contracts	
   Transac9onal	
   Rela9onal	
  
Incen9ve	
   Profit	
  Maximisa9on	
   Financial	
  Feedback	
  
Leading	
  Examples:	
  Nike,	
  Apple,	
  IBM,	
  Xerox,	
  GE,	
  MasterCard,	
  Cargill,	
  Starbucks	
  
	
  
	
  
Source:	
  Lusch	
  R.	
  F.,	
  Vargo	
  S.	
  L.	
  and	
  Malter	
  A.J.,	
  Taking	
  a	
  Leadership	
  Role	
  in	
  Global	
  Marke9ng	
  Management,	
  Organiza9onal	
  Dynamics,	
  Vol.	
  35,	
  No	
  3,	
  pp.	
  264-­‐278,	
  2006	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Over	
  the	
  past	
  years,	
  the	
  discipline	
  of	
  service	
  design	
  
and	
  innova9on	
  has	
  evolved	
  into	
  the	
  mainstream	
  
	
  
Different	
  specialist	
  agencies	
  propose	
  their	
  own	
  views	
  of	
  the	
  service	
  design	
  process	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Source:	
  LiveWork	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Varied	
  models	
  also	
  exist	
  for	
  the	
  overall	
  approach	
  to	
  
service	
  innova9on	
  development	
  and	
  thinking	
  
	
  
	
  
Many	
  look	
  at	
  key	
  components:	
  
§  Process	
  
§  Organisa9on	
  
§  Features	
  of	
  Product	
  
§  Nature	
  of	
  Product	
  
§  Delivery	
  of	
  Product	
  
§  Regula9on	
  
§  Marke9ng	
  
§  Role	
  of	
  Consumer	
  
Big	
  Focus	
  on	
  “Customers	
  in	
  context”	
  
	
  
Example	
  Source:	
  Engine	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
The	
  importance	
  of	
  crea9ng,	
  defining	
  and	
  delivering	
  
“great	
  customer	
  experiences”	
  has	
  become	
  key	
  
Great	
  Customer	
  Experiences:	
  
§  Strongly	
  reflect	
  the	
  customer’s	
  iden9ty	
  
§  Sa9sfy	
  our	
  higher	
  objec9ves	
  
§  Leave	
  nothing	
  to	
  chance	
  
§  Set	
  and	
  meet	
  expecta9ons	
  
§  Are	
  effortless	
  
§  Are	
  stress	
  free	
  
§  Indulge	
  the	
  senses	
  
§  Are	
  socially	
  engaging	
  
§  Put	
  the	
  customer	
  in	
  control	
  
§  Consider	
  the	
  emo9ons	
  
Source:	
  Watkinson,	
  M.,	
  The	
  Ten	
  Principles	
  Behind	
  Great	
  Customer	
  Experiences,	
  FT	
  /	
  Pearson,	
  2013	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
We	
  can	
  now	
  clearly	
  see	
  the	
  emergence	
  of	
  a	
  new	
  
phase	
  of	
  ‘next	
  genera9on’	
  service	
  innova9on	
  
•  Developed	
  in	
  closer	
  partnership	
  with	
  others	
  especially	
  including	
  customers	
  
Co-­‐crea2on	
  
•  Take	
  advantage	
  of	
  interac9vity,	
  social	
  networks	
  and	
  shi=	
  towards	
  seman9c	
  web	
  
Web	
  2.0	
  
•  Adopt	
  and	
  adapt	
  new	
  mechanisms	
  for	
  tangible	
  and	
  intangible	
  value	
  crea9on	
  
New	
  Business	
  Models	
  
•  Underpinned	
  by	
  changes	
  in	
  how	
  people	
  and	
  organiza9ons	
  wish	
  to	
  share	
  value	
  
New	
  Value	
  ShiYs	
  
The	
  emerging	
  successes	
  are	
  based	
  on	
  four	
  key	
  themes:	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Successful	
  service	
  innova9on	
  only	
  occurs	
  when	
  four	
  
key	
  elements	
  are	
  all	
  present,	
  aligned	
  and	
  balanced	
  
Successful	
  
Service	
  
Innova2on	
  
Unique	
  
Value	
  
Proposi2on	
  
Improved	
  
Delivery	
  
Approach	
  
Growing	
  
Emerging	
  
Trend	
  
Enhanced	
  
Customer	
  
Experience	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Each	
  of	
  these	
  elements	
  are	
  sources	
  of	
  differen9a9on	
  
that	
  collec9vely	
  bring	
  together	
  the	
  winning	
  formula	
  
Successful	
  
Service	
  
Innova2on	
  
Unique	
  
Value	
  
Proposi2on	
  
Improved	
  
Delivery	
  
Approach	
  
Growing	
  
Emerging	
  
Trend	
  
Enhanced	
  
Customer	
  
Experience	
  
Unique	
  Value	
  Proposi2on:	
  
•  Delivers	
  customers	
  clear	
  value	
  
•  Provides	
  a	
  compelling	
  story	
  
•  Can	
  be	
  delivered	
  profitably	
  
	
  
Improved	
  Delivery	
  Approach:	
  
•  Does	
  things	
  beoer	
  
•  More	
  efficient	
  than	
  exis9ng	
  
•  Highly	
  effec9ve	
  plaqorm	
  
Enhanced	
  Customer	
  Experience:	
  
•  Improves	
  customer’s	
  life	
  
•  Simple	
  &	
  engaging	
  touch-­‐points	
  
•  Transparent	
  customer	
  journey	
  
Growing	
  Emerging	
  Trend:	
  
•  Taps	
  into	
  evident	
  shi=	
  in	
  market	
  
•  Sustainable	
  growing	
  issue	
  
•  Global	
  /	
  regional	
  relevance	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Ul9mately,	
  successful	
  service	
  innova9on	
  changes	
  
expecta9ons	
  of	
  what	
  can	
  be	
  repeatedly	
  delivered	
  
Service	
  Innova9on	
  Focus	
  is	
  on	
  “doing	
  be*er	
  things	
  and	
  doing	
  things	
  be*er”	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
NEXT	
  GENERATION	
  SERVICE	
  INNOVATION:	
  
CASE	
  STUDIES	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
9	
  ini9al	
  case	
  studies	
  provide	
  a	
  wide	
  range	
  of	
  different	
  
s9mulus	
  around	
  successful	
  service	
  innova9on	
  today	
  
§  Efficiently	
  delivering	
  an	
  ever	
  changing	
  porqolio	
  
§  Reconfiguring	
  a	
  product	
  into	
  a	
  service	
  
§  Mass	
  personalisa9on	
  at	
  scale	
  
§  Using	
  data	
  to	
  get	
  close	
  to	
  customers	
  
§  Redefining	
  expecta9ons	
  of	
  travel	
  
§  Scaling	
  without	
  constraints	
  
§  Delivering	
  a	
  wide	
  and	
  dis9nc9ve	
  porqolio	
  of	
  needs	
  
§  Extending	
  global	
  adver9sing	
  reach	
  
§  Repackaging	
  the	
  concert	
  value	
  proposi9on	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
8	
  other	
  case	
  studies	
  highlight	
  some	
  next	
  genera9on	
  
service	
  models	
  that	
  are	
  now	
  emerging	
  and	
  growing	
  
§  Maximizing	
  fixed	
  asset	
  u9liza9on	
  
§  Reinven9ng	
  the	
  healthcare	
  business	
  model	
  
§  Providing	
  banking	
  access	
  at	
  the	
  booom	
  of	
  the	
  pyramid	
  
§  Pay	
  as	
  you	
  drive	
  insurance	
  
§  Crowd	
  funding	
  public	
  services	
  
§  Peer-­‐to-­‐peer	
  finance	
  
§  Co-­‐created	
  investment	
  funds	
  
§  Real-­‐9me	
  dynamic	
  pricing	
  of	
  9ckets	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Inditex,	
  the	
  worlds	
  best	
  retailer,	
  supports	
  high	
  levels	
  
of	
  autonomy,	
  fast	
  decisions	
  and	
  con9nuous	
  change	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
For	
  Inditex,	
  rapid,	
  con9nuous	
  change	
  of	
  merchandise	
  
results	
  in	
  high	
  customer	
  demand	
  and	
  very	
  low	
  waste	
  
4	
  x	
  Average	
  
store	
  visits	
  
per	
  year	
  
(Innova2on)	
  
Fast	
  
Fashion	
  
(Proposi2on)	
  
Global	
  
48hr	
  
Logis2cs	
  
(Delivery)	
  
Curated	
  
Choice	
  
(Trend)	
  
Always	
  
Something	
  
New	
  
(Experience)	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Rolls-­‐Royce	
  has	
  reconfigured	
  a	
  high	
  tech	
  product	
  and	
  
support	
  rela9onship	
  into	
  a	
  long	
  term	
  service	
  contract	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Rolls-­‐Royce’s	
  ‘power	
  by	
  the	
  hour’	
  Total	
  Care	
  service	
  
has	
  grown	
  to	
  represent	
  over	
  70%	
  of	
  group	
  revenues	
  
Redefined	
  
Rela2onship	
  
(Innova2on)	
  
Pay	
  only	
  
for	
  use	
  
(Proposi2on)	
  
24/7	
  
Remote	
  
Monitoring	
  
(Delivery)	
  
Access	
  not	
  
Ownership	
  
(Trend)	
  
Guaranteed	
  
Availability	
  
(Experience)	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Nike	
  has	
  used	
  Nike	
  ID	
  as	
  a	
  plaqorm	
  for	
  giving	
  
customers	
  apparent	
  personalisa9on	
  at	
  scale	
  	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Nike	
  ID	
  has	
  become	
  the	
  benchmark	
  for	
  mass	
  
customisa9on	
  services	
  around	
  core	
  products	
  
Curated	
  
Op2ons	
  
(Innova2on)	
  
Configure	
  
Your	
  Own	
  	
  
(Proposi2on)	
  
Direct	
  to	
  
Home	
  
(Delivery)	
  
Mass	
  
Customis-­‐
a2on	
  
(Trend)	
  
Unique	
  
Personal	
  
Products	
  
(Experience)	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Amazon	
  is	
  a	
  massively	
  efficient	
  business	
  delivering	
  
customer	
  sa9sfac9on	
  via	
  proprietary	
  technology	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Amazon	
  uses	
  its	
  data	
  exper9se	
  to	
  give	
  customers	
  a	
  
huge	
  range	
  of	
  credible	
  personal	
  recommenda9ons	
  
Personal	
  
Matching	
  
(Innova2on)	
  
Everything	
  
fast	
  and	
  
cheap	
  
(Proposi2on)	
  
Integrated	
  
Logis2cs	
  
(Delivery)	
  
Real-­‐2me	
  
Analy2cs	
  
(Trend)	
  
Simple	
  and	
  
Ubiquitous	
  
(Experience)	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Under	
  Singapore	
  Airline’s	
  ownership,	
  Virgin	
  Atlan9c	
  
has	
  consistently	
  reinvented	
  the	
  flying	
  experience	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Virgin	
  Atlan9c’s	
  crea9on	
  of	
  Upper	
  Class	
  and	
  Premium	
  
Economy	
  changed	
  the	
  mass	
  accessible	
  experience	
  
Reinvent	
  
Status	
  Quo	
  
(Innova2on)	
  
Create	
  
New	
  
Segments	
  
(Proposi2on)	
  
Challenger	
  
Posi2oning	
  
(Delivery)	
  
Flexible	
  
Spaces	
  
(Trend)	
  
Radical	
  
Seamless	
  
Design	
  
(Experience)	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Bhar9	
  Airtel’s	
  extreme	
  outsourcing	
  business	
  model	
  
enabled	
  it	
  to	
  scale	
  quickly	
  and	
  it	
  is	
  now	
  the	
  world	
  #3	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
By	
  partnering	
  on	
  everything	
  but	
  the	
  core	
  customer	
  
rela9onship,	
  Airtel	
  has	
  been	
  able	
  to	
  grow	
  quicker	
  
Scaling	
  
without	
  
Legacy	
  
(Innova2on)	
  
The	
  Latest	
  
at	
  Low	
  
Cost	
  
(Proposi2on)	
  
Global	
  
Partners	
  
(Delivery)	
  
Pervasive	
  
Mobile	
  
(Trend)	
  
Simple	
  
and	
  Fast	
  
Access	
  
(Experience)	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Starwood	
  drives	
  high	
  loyalty	
  by	
  efficiently	
  delivering	
  
consistent	
  and	
  memorable	
  guest	
  experiences	
  	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Starwood	
  Hotels	
  has	
  created	
  mul9ple	
  leading	
  but	
  
separate	
  branded	
  experiences	
  with	
  global	
  resonance	
  
Dis2nc2ve	
  
Branded	
  
Experiences	
  
(Innova2on)	
  
Mul2-­‐
brand	
  
Pordolio	
  
(Proposi2on)	
  
Consistent	
  
Franchise	
  
(Delivery)	
  
Global	
  
Connec2vity	
  
(Trend)	
  
Memorable	
  
Standards	
  
(Experience)	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Google	
  excels	
  at	
  par9cipa9ve	
  product	
  development	
  
that	
  supports	
  incessant	
  adjacent	
  sector	
  disrup9on	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Google	
  has	
  been	
  innova9ng	
  across	
  mul9ple	
  sectors	
  
while	
  building	
  the	
  world	
  most	
  connected	
  ad	
  agency	
  
Growing	
  
Reach	
  and	
  
Relevance	
  
(Innova2on)	
  
Beeer	
  
Informa2on	
  
(Proposi2on)	
  
Connected	
  
Data	
  
(Delivery)	
  
Credible	
  
Sources	
  
(Trend)	
  
Beta	
  based	
  
Innova2on	
  
(Experience)	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Live	
  Na9on	
  has	
  aligned	
  around	
  change	
  in	
  its	
  industry	
  
and	
  fully	
  repackaged	
  the	
  concert	
  value	
  proposi9on	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
While	
  the	
  cost	
  to	
  access	
  music	
  has	
  declined,	
  Live	
  
Na9on	
  has	
  premiumised	
  the	
  mass	
  live	
  experience	
  
360	
  Wrap	
  
Star	
  Deals	
  
(Innova2on)	
  
Access	
  to	
  
the	
  Top	
  
Acts	
  
(Proposi2on)	
  
Exclusive	
  
Partners	
  
(Delivery)	
  
Live	
  
Experiences	
  
(Trend)	
  
Seamless	
  
Integra2on	
  
(Experience)	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Zipcar	
  brings	
  vehicle	
  affordable	
  access	
  by	
  the	
  hour	
  
into	
  the	
  neighbourhood	
  and	
  changes	
  rental	
  models	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
By	
  shi=ing	
  both	
  pricing	
  and	
  access	
  models,	
  Zipcar	
  is	
  
making	
  flexible	
  access	
  more	
  popular	
  than	
  ownership	
  	
  
Replace	
  
Urban	
  Car	
  
Ownership	
  
(Innova2on)	
  
Flexible	
  
Access	
  
(Proposi2on)	
  
Availability	
  
Guarantee	
  
(Delivery)	
  
Access	
  not	
  
Ownership	
  
(Trend)	
  
Easy	
  and	
  
Local	
  
(Experience)	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Narayana	
  Hrundayalaya	
  leads	
  in	
  efficient	
  surgery	
  
through	
  integrated	
  process	
  and	
  business	
  innova9on	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
As	
  a	
  centre	
  of	
  exper9se	
  Naranaya	
  Hrundayalaya	
  is	
  
the	
  place	
  to	
  go	
  for	
  doctors	
  and	
  pa9ents	
  globally	
  
Systema2c	
  
Factory	
  
(Innova2on)	
  
Best	
  for	
  
Less	
  
(Proposi2on)	
  
Op2mised	
  
Process	
  
(Delivery)	
  
Medical	
  
Tourism	
  
(Trend)	
  
Fast	
  and	
  
Efficient	
  
(Experience)	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Across	
  Africa	
  M-­‐Pesa	
  has	
  proven	
  that	
  money	
  transfer	
  
via	
  mobile	
  is	
  viable	
  at	
  the	
  booom	
  of	
  the	
  pyramid	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
M-­‐Pesa	
  is	
  scaling	
  fast	
  as	
  a	
  trusted	
  plaqorm	
  with	
  
momentum	
  building	
  to	
  a	
  wider	
  porqolio	
  and	
  reach	
  
Step	
  change	
  
for	
  the	
  
Unbanked	
  
(Innova2on)	
  
Low	
  Cost	
  
Transfer	
  
(Proposi2on)	
  
Agent	
  
Networks	
  
(Delivery)	
  
Pervasive
Mobile	
  
(Trend)	
  
Simple	
  
and	
  
Trusted	
  
(Experience)	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
AA	
  Drivesafe	
  has	
  made	
  pay	
  as	
  you	
  drive	
  insurance	
  
accessible	
  through	
  rewarding	
  behaviour	
  change	
  	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Improving	
  on	
  previous	
  models	
  AA	
  Drivesafe	
  provides	
  
transparent	
  cheaper	
  car	
  insurance	
  for	
  safer	
  drivers	
  
Cheaper	
  
insurance	
  
for	
  safe	
  
drivers	
  
(Innova2on)	
  
Visible	
  
Choice	
  
(Proposi2on)	
  
Partner	
  
with	
  
Networks	
  
(Delivery)	
  
Real	
  Time	
  
Tracking	
  
(Trend)	
  
Clear	
  
Payback	
  
(Experience)	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Ci9zinvestor	
  is	
  bringing	
  direct	
  local	
  benefit	
  to	
  those	
  
wishing	
  to	
  invest	
  in	
  social	
  innova9on	
  and	
  ac9on	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
By	
  matching	
  tangible	
  needs	
  to	
  investors	
  Ci9zinvestor	
  
is	
  efficiently	
  by-­‐passing	
  local	
  government	
  ac9vi9es	
  
Transparent	
  
Marketplace	
  
(Innova2on)	
  
Invest	
  in	
  
Local	
  
(Proposi2on)	
  
Collec2ve	
  
Ac2on	
  
(Delivery)	
  
Crowd-­‐
funding	
  
(Trend)	
  
Social	
  
Impact	
  
(Experience)	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Zopa	
  is	
  a	
  pioneer	
  in	
  peer-­‐to-­‐peer	
  banking	
  that	
  shares	
  
efficiencies	
  with	
  both	
  savers	
  and	
  those	
  seeking	
  loans	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
By	
  crea9ng	
  a	
  more	
  efficient	
  and	
  trusted	
  system	
  Zopa	
  
and	
  co	
  have	
  the	
  poten9al	
  to	
  disrupt	
  the	
  mainstream	
  
Community	
  
Bond	
  
Market	
  
(Innova2on)	
  
Beeer	
  
Rates	
  
(Proposi2on)	
  
Using	
  
Dispersed	
  
Scale	
  
(Delivery)	
  
Power	
  of	
  
Networks	
  
(Trend)	
  
Simple	
  
and	
  
Trusted	
  
(Experience)	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Mo9f	
  is	
  demys9fying	
  the	
  fund	
  management	
  arena	
  by	
  
giving	
  a	
  plaqorm	
  to	
  those	
  with	
  the	
  best	
  ideas	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Investors	
  can	
  put	
  their	
  money	
  behind	
  the	
  best	
  
concepts	
  that	
  Mo9f	
  makes	
  clear	
  to	
  everyone	
  
Demys2fying	
  
Fund	
  
Management	
  	
  
(Innova2on)	
  
Access	
  High	
  
Performers	
  
(Proposi2on)	
  
Credible	
  
Investment	
  
Engine	
  
(Delivery)	
  
ShiY	
  in	
  
Trust	
  
(Trend)	
  
Informed	
  
Inves2ng	
  
(Experience)	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Qcue’s	
  approach	
  to	
  real-­‐9me	
  dynamic	
  pricing	
  of	
  
9ckets	
  is	
  helping	
  improve	
  the	
  market	
  efficiency	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
In	
  providing	
  transparency	
  on	
  value	
  op9ons,	
  Qcue	
  
helps	
  all	
  key	
  event	
  players	
  maximise	
  their	
  revenues	
  
Accurate	
  
Ticket	
  
Pricing	
  
(Innova2on)	
  
Op2mise	
  
Yield	
  
(Proposi2on)	
  
Enabling	
  
SoYware	
  
(Delivery)	
  
Dynamic	
  
Pricing	
  
(Trend)	
  
Real-­‐2me	
  
Insight	
  
(Experience)	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Across	
  these	
  ‘next	
  genera9on’	
  service	
  innova9ons,	
  
the	
  four	
  key	
  themes	
  are	
  all	
  evident	
  and	
  significant	
  
•  Developed	
  in	
  closer	
  partnership	
  with	
  others	
  especially	
  including	
  customers	
  
Co-­‐crea2on	
  
•  Take	
  advantage	
  of	
  interac9vity,	
  social	
  networks	
  and	
  shi=	
  towards	
  seman9c	
  web	
  
Web	
  2.0	
  
•  Adopt	
  and	
  adapt	
  new	
  mechanisms	
  for	
  tangible	
  and	
  intangible	
  value	
  crea9on	
  
New	
  Business	
  Models	
  
•  Underpinned	
  by	
  changes	
  in	
  how	
  people	
  and	
  organiza9ons	
  wish	
  to	
  share	
  value	
  
New	
  Value	
  ShiYs	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
NEXT	
  GENERATION	
  SERVICE	
  INNOVATION:	
  
BUSINESS	
  IMPACT	
  
	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
This	
  third	
  session	
  uses	
  the	
  case	
  studies	
  so	
  that	
  you	
  
see	
  which	
  have	
  greatest	
  relevance	
  for	
  your	
  business	
  
The	
  aim	
  of	
  this	
  session	
  is	
  four-­‐fold:	
  
§  Allow	
  you	
  to	
  consider	
  the	
  case	
  studies	
  more	
  
§  Encourage	
  you	
  to	
  think	
  of	
  what	
  lessons	
  they	
  may	
  have	
  for	
  you	
  
§  Map	
  those	
  which	
  highest	
  poten9al	
  impact	
  and	
  relevance	
  
§  Select	
  and	
  discuss	
  the	
  few	
  key	
  case	
  studies	
  that	
  have	
  greatest	
  insight	
  	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
First	
  use	
  your	
  case	
  study	
  cards	
  and	
  sort	
  them	
  by	
  their	
  
poten9al	
  impact	
  to	
  the	
  market	
  in	
  which	
  you	
  operate	
  
Increasing	
  poten2al	
  impact	
  to	
  your	
  market	
  	
  
Low	
   High	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Now	
  thinking	
  more	
  specifically	
  about	
  your	
  business,	
  
raise	
  and	
  lower	
  the	
  cards	
  to	
  sort	
  them	
  by	
  relevance	
  	
  	
  Increasing	
  poten2al	
  relevance	
  to	
  your	
  business	
  
Low	
  
High	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Your	
  matrix	
  should	
  now	
  clearly	
  highlight	
  those	
  case	
  
studies	
  from	
  which	
  you	
  think	
  there	
  is	
  most	
  to	
  learn	
  
High	
  
Relevance	
  /	
  
Low	
  Poten9al	
  
Impact	
  
High	
  
Relevance	
  /	
  
High	
  
Poten9al	
  
Impact	
  
Low	
  
Relevance	
  /	
  
Low	
  Impact	
  
Low	
  
Relevance	
  /	
  
High	
  
Poten9al	
  
Impact	
  
Example	
  outcome:	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
NEXT	
  GENERATION	
  SERVICE	
  INNOVATION:	
  
TOOLS	
  TO	
  RETHINK	
  SERVICE	
  INNOVATION	
  
	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
This	
  final	
  session	
  pilots	
  four	
  different	
  tools	
  to	
  help	
  
iden9fy	
  game-­‐changing	
  service	
  concepts	
  	
  
§  Parallel	
  View	
  –	
  What	
  if	
  X,	
  Y	
  or	
  Z	
  were	
  running	
  our	
  business	
  
§  Developing	
  scenarios	
  of	
  top	
  case	
  study	
  examples	
  taking	
  control	
  
§  Good	
  at	
  highligh9ng	
  different	
  cultural	
  and	
  strategic	
  priori9es	
  
§  Value	
  Innova2on	
  and	
  Blue	
  Ocean	
  Strategy	
  
§  Using	
  this	
  well	
  regarded	
  approach	
  to	
  reconfigure	
  value	
  proposi9ons	
  
§  Provides	
  a	
  clear	
  approach	
  for	
  refocusing	
  on	
  the	
  customer	
  
§  Lean	
  Thinking	
  
§  Taking	
  out	
  what	
  does	
  not	
  add	
  value	
  and	
  reusing	
  freed	
  resources	
  
§  Very	
  good	
  at	
  helping	
  firms	
  seeing	
  how	
  they	
  can	
  ‘do	
  things	
  beoer’	
  
§  Destroy	
  Your	
  Own	
  Business	
  
§  Approach	
  for	
  rethinking	
  how	
  to	
  create	
  value	
  if	
  free	
  of	
  legacy	
  
§  Excellent	
  way	
  of	
  s9mula9ng	
  people	
  around	
  ‘doing	
  beoer	
  things’	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Parallel	
  Views	
  help	
  us	
  think	
  about	
  how	
  other	
  brands	
  
would	
  deliver	
  a	
  beoer	
  /	
  different	
  service	
  experience	
  
§  Principle	
  based	
  on	
  looking	
  at	
  issue	
  through	
  other’s	
  eyes	
  
§  Can	
  be	
  used	
  for	
  whole	
  new	
  service	
  crea2on	
  or	
  experience	
  innova2on	
  
§  Works	
  well	
  if	
  choosing	
  organisa2ons	
  both	
  in	
  your	
  sector	
  and	
  outside	
  
§  Best	
  if	
  you	
  push	
  the	
  boundaries	
  and	
  go	
  for	
  extremes	
  
§  Focus	
  on	
  revolu2onary	
  changes	
  that	
  other	
  brands	
  could	
  do	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Parallel	
  Views	
  –	
  Approach	
  Overview	
  	
  
Select	
  
•  Choose	
  two	
  
different	
  
brands	
  
known	
  for	
  
innova9on	
  
in	
  service	
  
experience	
  
Suspend	
  
•  Ignore	
  your	
  
exis9ng	
  and	
  
legacy	
  ways	
  
of	
  service	
  
delivery	
  in	
  
your	
  market	
  
Change	
  
•  Discuss	
  how	
  
the	
  other	
  
brands	
  
could	
  
deliver	
  a	
  
beoer	
  
experience	
  
Detail	
  
•  Spell	
  out	
  
the	
  key	
  
components	
  
of	
  the	
  new	
  
service	
  
innova9on	
  
Impact	
  
•  Discuss	
  
which	
  of	
  
these	
  could	
  
be	
  achieved	
  
by	
  your	
  
business	
  
and	
  how	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Value	
  innova9on,	
  is	
  the	
  simultaneous	
  pursuit	
  of	
  
differen9a9on	
  and	
  low	
  cost,	
  crea9ng	
  a	
  leap	
  in	
  value	
  	
  
§  This	
  is	
  the	
  cornerstone	
  of	
  ‘blue	
  ocean	
  
strategy’	
  in	
  crea2ng	
  value	
  for	
  both	
  
buyers	
  and	
  the	
  company:	
  
§  Value	
  to	
  buyers	
  comes	
  from	
  the	
  
offering’s	
  u9lity	
  minus	
  its	
  price	
  
§  Value	
  to	
  the	
  company	
  is	
  generated	
  
from	
  the	
  offering’s	
  price	
  minus	
  its	
  
cost	
  
§  So,	
  value	
  innova2on	
  is	
  achieved	
  
only	
  when	
  the	
  whole	
  system	
  of	
  
u9lity,	
  price,	
  and	
  cost	
  is	
  aligned.	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
One	
  of	
  the	
  earliest	
  successful	
  uses	
  of	
  Value	
  
Innova9on	
  thinking	
  was	
  for	
  Formule	
  1	
  hotels	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Value	
  Innova9on	
  –	
  Approach	
  Overview	
  
§  Iden2fy	
  the	
  key	
  factors	
  on	
  the	
  service	
  delivery	
  for	
  customer	
  and	
  supplier	
  
§  Plot	
  and	
  map	
  a	
  couple	
  of	
  current	
  leading	
  offers	
  as	
  curves	
  
§  Break	
  the	
  value-­‐cost	
  tradeoff	
  by	
  answering	
  the	
  following	
  ques2ons:	
  
1.  What	
  factors	
  can	
  be	
  eliminated	
  that	
  the	
  industry	
  has	
  taken	
  for	
  granted?	
  
2.  What	
  factors	
  can	
  be	
  reduced	
  well	
  below	
  the	
  industry’s	
  standard?	
  
3.  What	
  factors	
  can	
  be	
  raised	
  well	
  above	
  the	
  industry’s	
  standard?	
  
4.  What	
  factors	
  can	
  be	
  created	
  that	
  the	
  industry	
  has	
  never	
  offered?	
  
§  Redraw	
  the	
  value	
  curve	
  of	
  a	
  new	
  service	
  innova2on	
  that	
  changes	
  the	
  game	
  
§  Discuss	
  the	
  new	
  value	
  proposi2on	
  and	
  how	
  to	
  delivery	
  it	
  effec2vely	
  
	
  	
  
	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Lean	
  Thinking	
  first	
  evolved	
  as	
  a	
  technique	
  used	
  in	
  
manufacturing	
  but	
  is	
  now	
  applied	
  to	
  many	
  areas	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
There	
  are	
  five	
  overriding	
  principles	
  to	
  Lean	
  Thinking	
  
that	
  have	
  helped	
  many	
  reinvent	
  their	
  service	
  delivery	
  
Iden2fy	
  Customers	
  and	
  Specify	
  Value	
  	
  
§  Only	
  a	
  frac9on	
  of	
  total	
  effort	
  in	
  any	
  organisa9on	
  adds	
  value	
  for	
  the	
  end	
  customer	
  	
  
§  Need	
  to	
  clearly	
  define	
  Value	
  for	
  a	
  service	
  from	
  the	
  end	
  customer’s	
  perspec9ve	
  	
  
§  All	
  the	
  non	
  value	
  ac9vi9es	
  -­‐	
  or	
  waste	
  -­‐	
  can	
  be	
  targeted	
  for	
  removal	
  
Iden2fy	
  and	
  Map	
  the	
  Value	
  Stream	
  	
  
§  The	
  Value	
  Stream	
  is	
  the	
  end-­‐to-­‐end	
  ac9vi9es	
  across	
  the	
  firm	
  delivering	
  the	
  service.	
  	
  
§  Understand	
  what	
  your	
  customer	
  wants	
  and	
  how	
  you	
  are	
  delivering	
  that	
  to	
  them.	
  
Create	
  Flow	
  by	
  Elimina2ng	
  Waste	
  	
  
§  When	
  you	
  map	
  the	
  Value	
  Stream	
  you	
  will	
  find	
  less	
  than	
  half	
  of	
  ac9vi9es	
  add	
  value.	
  	
  
§  Elimina9ng	
  this	
  waste	
  ensures	
  that	
  your	
  service	
  “flows”	
  beoer	
  to	
  the	
  customer.	
  
Respond	
  to	
  Customer	
  Pull	
  	
  
§  See	
  the	
  customer	
  demand	
  and	
  then	
  create	
  your	
  process	
  to	
  respond	
  to	
  this.	
  
§  Produce	
  only	
  what	
  the	
  customer	
  wants	
  when	
  the	
  customer	
  wants	
  it.	
  
Pursue	
  Perfec2on	
  	
  
§  Radically	
  reorganising	
  individual	
  process	
  steps	
  to	
  eliminate	
  waste.	
  	
  
§  Aim	
  for	
  perfec9on,	
  where	
  every	
  ac9on	
  adds	
  value	
  for	
  the	
  end	
  customer.	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Lean	
  Thinking	
  –	
  Approach	
  Overview	
  
Source:	
  Peter	
  Hines,	
  Lean	
  Enterprise	
  Research	
  Centre,	
  Cardiff	
  Business	
  School	
  
Iden9fy	
  Value	
  
Map	
  the	
  Value	
  
Stream	
  
Create	
  	
  
Flow	
  
Establish	
  	
  
Pull	
  
Seek	
  Perfec9on	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  
Destroy	
  Your	
  Own	
  Business	
  was	
  an	
  approach	
  to	
  
radical	
  rethinking	
  that	
  grew	
  out	
  of	
  GE	
  in	
  2000	
  
Back	
  in	
  2000	
  GE	
  created	
  the	
  destroy-­‐your-­‐business	
  exercise	
  	
  
§  It	
  forced	
  every	
  company	
  business	
  unit	
  to	
  benchmark	
  compe9tors,	
  develop	
  
a	
  Web-­‐based	
  business	
  plan	
  to	
  erode	
  its	
  own	
  customer	
  base	
  and	
  then	
  
change	
  its	
  own	
  business	
  opera9ons	
  to	
  respond	
  to	
  the	
  threat.	
  
Since	
  then	
  the	
  approach	
  has	
  evolved	
  into	
  a	
  co-­‐crea2on	
  experience	
  
§  Working	
  with	
  customers	
  to	
  co-­‐define	
  new	
  ways	
  of	
  mee9ng	
  new	
  needs	
  
Core	
  principle	
  is	
  well	
  proven:	
  
§  If	
  you	
  are	
  freed	
  from	
  exis9ng	
  prac9ce	
  and	
  assets,	
  how	
  would	
  you	
  use	
  new	
  
approaches	
  available	
  today	
  to	
  take	
  #1	
  spot	
  in	
  your	
  sector?	
  
§  What	
  can	
  your	
  exis9ng	
  business	
  do	
  to	
  take	
  advantage	
  of	
  this	
  by	
  innova9ng	
  
the	
  service	
  proposi9on	
  to	
  customers?	
  
 	
  	
   	
  	
  	
  www.growthchampions.org	
  	
  	
  	
  	
  	
  	
  	
  www.trainingvision.com.sg	
  

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Next-Generation Service Innovation Workshop

  • 1.            www.growthchampions.org                www.trainingvision.com.sg  
  • 2.            www.growthchampions.org                www.trainingvision.com.sg   Today’s  workshop  is  designed  to  stretch  thinking   using  specific  insights  as  s9mulus  to  change  views   Morning   A=ernoon   S9mulate   Priori9ze   Challenge   Focus  and  Next  Steps   Clear  Outputs  Informed  Inputs   External     S9mulus   Reflect  &   Review  
  • 3.            www.growthchampions.org                www.trainingvision.com.sg   During  the  day  we  will  cover  four  key  areas  and   discuss  a  number  of  service  innova9on  models   1.  Context  for  Service  Innova2on:   §  History,  leading  examples  and  evolving  framework  of  progress   2.  Case  Studies  :   §  Examples  of  successful  service  innova9on  to  discuss  and  explore   3.  Business  Impact:   §  Discussion  of  which  examples  have  greatest  resonance  and  impact   4.  Tools  to  Rethink  Service  Innova2on:   §  Four  approaches  for  iden9fy  game-­‐changing  service  concepts    
  • 4.            www.growthchampions.org                www.trainingvision.com.sg   These  four  phases  of  learning  are  used  during  the  day   to  build  up  knowledge,  insight  and  applica9on   Morning   A=ernoon   S9mulate   Priori9ze   Challenge   Focus  and  Next  Steps   Clear  Outputs  Informed  Inputs   External     S9mulus   Reflect  &   Review   1:  Context   2:  Case  Studies   3:  Business  Impact   4:  Tools  
  • 5.            www.growthchampions.org                www.trainingvision.com.sg   NEXT  GENERATION  SERVICE  INNOVATION:   THE  CONTEXT  FOR  SERVICE  INNOVATION      
  • 6.            www.growthchampions.org                www.trainingvision.com.sg   The  first  session  sets  the  scene  for  service  innova9on,   its  scope,  its  development  and  its  future  poten9al   Recogni9on  of   Service   Innova9on   •  Inclusion  of  SI  in  R&D   •  Three  Key  Areas:   •  New  service   development   •  Improved  service   processes   •  Innova9on  in  service   firms   Different   Dimensions   •  The  Service  Concept   •  The  Client  Interface   •  The  Delivery  System   •  Technology  Op9ons   •  Service  Dominant  Logic   Next  Genera9on   Service   Innova9on   •  Co-­‐crea9on   •  Web  2.0  enabled   •  New  Business  Models   •  New  Value  Shi=s   Core  Service  Innova9on  Focus  is  on  “doing  be*er  things  and  doing  things  be*er”  
  • 7.            www.growthchampions.org                www.trainingvision.com.sg   Service  innova9on  as  a  specific  focus  has  now  been   on  the  scene  in  different  views  for  over  twenty  years   Three  types  of  service  innova2on:  Ian  Miles    -­‐  Univ.  of  Manchester  (1993)   §  New  service  development   §  New  or  improved  service  products  –  Axel  Johne  and  Chris  Storey  etc   §  Improved  service  processes   §  New  or  improved  ways  of  designing  or  delivering  services   §  Innova2on  in  service  firms   §  Organisa9onal  innova9on  -­‐  processes  and  management  of  innova9on   Key  components  of  service  innova2on:  TEKES     §  Replicable  elements   §  Benefit  to  producer  and  customer   §  Changes  to  customer  interface,  distribu9on,  forms  of  opera9on  etc.  
  • 8.            www.growthchampions.org                www.trainingvision.com.sg   In  recent  years  several  others  in  have  sought  to   classify  the  key  dimensions  of  service  innova9on     Four  Dimensions  of  Service  Innova2on:  Den  Hertog  (2007)   §  The  Service  Concept    e.g.  new  value  proposi9on,  new  retail  format   §  The  Client  Interface    e.g.  par9cipa9on  of  customers,  changes  in  roles   §  The  Delivery  System   e.g.  linkage  between  provider  and  customer,  job  roles   §  Technology  Op2ons    e.g.  more  effec9ve  informa9on  processing,  smart  communica9ons     Others  views  to  note:  Henry  Chesbrough,  Tony  Ulwick.     Service  Innova9on  Focus  is  on  “doing  be*er  things  and  doing  things  be*er”  
  • 9.            www.growthchampions.org                www.trainingvision.com.sg   Service  Dominant  Logic  is  a  good  way  of  thinking   about  the  change  adopted  by  a  some  organisa9ons   Goods  Dominant  Logic   Service  Dominant  Logic   Focus   Goods   Services   Experience   Tangible   Intangible   Resources   Operand   Operant   Informa9on   Asymmetric   Symmetric   Dialogue   Propaganda   Conversa9on   Value  Crea9on   Value  Added   Value  Proposi9on   Contracts   Transac9onal   Rela9onal   Incen9ve   Profit  Maximisa9on   Financial  Feedback   Leading  Examples:  Nike,  Apple,  IBM,  Xerox,  GE,  MasterCard,  Cargill,  Starbucks       Source:  Lusch  R.  F.,  Vargo  S.  L.  and  Malter  A.J.,  Taking  a  Leadership  Role  in  Global  Marke9ng  Management,  Organiza9onal  Dynamics,  Vol.  35,  No  3,  pp.  264-­‐278,  2006  
  • 10.            www.growthchampions.org                www.trainingvision.com.sg   Over  the  past  years,  the  discipline  of  service  design   and  innova9on  has  evolved  into  the  mainstream     Different  specialist  agencies  propose  their  own  views  of  the  service  design  process                         Source:  LiveWork  
  • 11.            www.growthchampions.org                www.trainingvision.com.sg   Varied  models  also  exist  for  the  overall  approach  to   service  innova9on  development  and  thinking       Many  look  at  key  components:   §  Process   §  Organisa9on   §  Features  of  Product   §  Nature  of  Product   §  Delivery  of  Product   §  Regula9on   §  Marke9ng   §  Role  of  Consumer   Big  Focus  on  “Customers  in  context”     Example  Source:  Engine  
  • 12.            www.growthchampions.org                www.trainingvision.com.sg   The  importance  of  crea9ng,  defining  and  delivering   “great  customer  experiences”  has  become  key   Great  Customer  Experiences:   §  Strongly  reflect  the  customer’s  iden9ty   §  Sa9sfy  our  higher  objec9ves   §  Leave  nothing  to  chance   §  Set  and  meet  expecta9ons   §  Are  effortless   §  Are  stress  free   §  Indulge  the  senses   §  Are  socially  engaging   §  Put  the  customer  in  control   §  Consider  the  emo9ons   Source:  Watkinson,  M.,  The  Ten  Principles  Behind  Great  Customer  Experiences,  FT  /  Pearson,  2013  
  • 13.            www.growthchampions.org                www.trainingvision.com.sg   We  can  now  clearly  see  the  emergence  of  a  new   phase  of  ‘next  genera9on’  service  innova9on   •  Developed  in  closer  partnership  with  others  especially  including  customers   Co-­‐crea2on   •  Take  advantage  of  interac9vity,  social  networks  and  shi=  towards  seman9c  web   Web  2.0   •  Adopt  and  adapt  new  mechanisms  for  tangible  and  intangible  value  crea9on   New  Business  Models   •  Underpinned  by  changes  in  how  people  and  organiza9ons  wish  to  share  value   New  Value  ShiYs   The  emerging  successes  are  based  on  four  key  themes:  
  • 14.            www.growthchampions.org                www.trainingvision.com.sg   Successful  service  innova9on  only  occurs  when  four   key  elements  are  all  present,  aligned  and  balanced   Successful   Service   Innova2on   Unique   Value   Proposi2on   Improved   Delivery   Approach   Growing   Emerging   Trend   Enhanced   Customer   Experience  
  • 15.            www.growthchampions.org                www.trainingvision.com.sg   Each  of  these  elements  are  sources  of  differen9a9on   that  collec9vely  bring  together  the  winning  formula   Successful   Service   Innova2on   Unique   Value   Proposi2on   Improved   Delivery   Approach   Growing   Emerging   Trend   Enhanced   Customer   Experience   Unique  Value  Proposi2on:   •  Delivers  customers  clear  value   •  Provides  a  compelling  story   •  Can  be  delivered  profitably     Improved  Delivery  Approach:   •  Does  things  beoer   •  More  efficient  than  exis9ng   •  Highly  effec9ve  plaqorm   Enhanced  Customer  Experience:   •  Improves  customer’s  life   •  Simple  &  engaging  touch-­‐points   •  Transparent  customer  journey   Growing  Emerging  Trend:   •  Taps  into  evident  shi=  in  market   •  Sustainable  growing  issue   •  Global  /  regional  relevance  
  • 16.            www.growthchampions.org                www.trainingvision.com.sg   Ul9mately,  successful  service  innova9on  changes   expecta9ons  of  what  can  be  repeatedly  delivered   Service  Innova9on  Focus  is  on  “doing  be*er  things  and  doing  things  be*er”  
  • 17.            www.growthchampions.org                www.trainingvision.com.sg   NEXT  GENERATION  SERVICE  INNOVATION:   CASE  STUDIES  
  • 18.            www.growthchampions.org                www.trainingvision.com.sg   9  ini9al  case  studies  provide  a  wide  range  of  different   s9mulus  around  successful  service  innova9on  today   §  Efficiently  delivering  an  ever  changing  porqolio   §  Reconfiguring  a  product  into  a  service   §  Mass  personalisa9on  at  scale   §  Using  data  to  get  close  to  customers   §  Redefining  expecta9ons  of  travel   §  Scaling  without  constraints   §  Delivering  a  wide  and  dis9nc9ve  porqolio  of  needs   §  Extending  global  adver9sing  reach   §  Repackaging  the  concert  value  proposi9on  
  • 19.            www.growthchampions.org                www.trainingvision.com.sg   8  other  case  studies  highlight  some  next  genera9on   service  models  that  are  now  emerging  and  growing   §  Maximizing  fixed  asset  u9liza9on   §  Reinven9ng  the  healthcare  business  model   §  Providing  banking  access  at  the  booom  of  the  pyramid   §  Pay  as  you  drive  insurance   §  Crowd  funding  public  services   §  Peer-­‐to-­‐peer  finance   §  Co-­‐created  investment  funds   §  Real-­‐9me  dynamic  pricing  of  9ckets  
  • 20.            www.growthchampions.org                www.trainingvision.com.sg   Inditex,  the  worlds  best  retailer,  supports  high  levels   of  autonomy,  fast  decisions  and  con9nuous  change  
  • 21.            www.growthchampions.org                www.trainingvision.com.sg   For  Inditex,  rapid,  con9nuous  change  of  merchandise   results  in  high  customer  demand  and  very  low  waste   4  x  Average   store  visits   per  year   (Innova2on)   Fast   Fashion   (Proposi2on)   Global   48hr   Logis2cs   (Delivery)   Curated   Choice   (Trend)   Always   Something   New   (Experience)  
  • 22.            www.growthchampions.org                www.trainingvision.com.sg   Rolls-­‐Royce  has  reconfigured  a  high  tech  product  and   support  rela9onship  into  a  long  term  service  contract  
  • 23.            www.growthchampions.org                www.trainingvision.com.sg   Rolls-­‐Royce’s  ‘power  by  the  hour’  Total  Care  service   has  grown  to  represent  over  70%  of  group  revenues   Redefined   Rela2onship   (Innova2on)   Pay  only   for  use   (Proposi2on)   24/7   Remote   Monitoring   (Delivery)   Access  not   Ownership   (Trend)   Guaranteed   Availability   (Experience)  
  • 24.            www.growthchampions.org                www.trainingvision.com.sg   Nike  has  used  Nike  ID  as  a  plaqorm  for  giving   customers  apparent  personalisa9on  at  scale    
  • 25.            www.growthchampions.org                www.trainingvision.com.sg   Nike  ID  has  become  the  benchmark  for  mass   customisa9on  services  around  core  products   Curated   Op2ons   (Innova2on)   Configure   Your  Own     (Proposi2on)   Direct  to   Home   (Delivery)   Mass   Customis-­‐ a2on   (Trend)   Unique   Personal   Products   (Experience)  
  • 26.            www.growthchampions.org                www.trainingvision.com.sg   Amazon  is  a  massively  efficient  business  delivering   customer  sa9sfac9on  via  proprietary  technology  
  • 27.            www.growthchampions.org                www.trainingvision.com.sg   Amazon  uses  its  data  exper9se  to  give  customers  a   huge  range  of  credible  personal  recommenda9ons   Personal   Matching   (Innova2on)   Everything   fast  and   cheap   (Proposi2on)   Integrated   Logis2cs   (Delivery)   Real-­‐2me   Analy2cs   (Trend)   Simple  and   Ubiquitous   (Experience)  
  • 28.            www.growthchampions.org                www.trainingvision.com.sg   Under  Singapore  Airline’s  ownership,  Virgin  Atlan9c   has  consistently  reinvented  the  flying  experience  
  • 29.            www.growthchampions.org                www.trainingvision.com.sg   Virgin  Atlan9c’s  crea9on  of  Upper  Class  and  Premium   Economy  changed  the  mass  accessible  experience   Reinvent   Status  Quo   (Innova2on)   Create   New   Segments   (Proposi2on)   Challenger   Posi2oning   (Delivery)   Flexible   Spaces   (Trend)   Radical   Seamless   Design   (Experience)  
  • 30.            www.growthchampions.org                www.trainingvision.com.sg   Bhar9  Airtel’s  extreme  outsourcing  business  model   enabled  it  to  scale  quickly  and  it  is  now  the  world  #3  
  • 31.            www.growthchampions.org                www.trainingvision.com.sg   By  partnering  on  everything  but  the  core  customer   rela9onship,  Airtel  has  been  able  to  grow  quicker   Scaling   without   Legacy   (Innova2on)   The  Latest   at  Low   Cost   (Proposi2on)   Global   Partners   (Delivery)   Pervasive   Mobile   (Trend)   Simple   and  Fast   Access   (Experience)  
  • 32.            www.growthchampions.org                www.trainingvision.com.sg   Starwood  drives  high  loyalty  by  efficiently  delivering   consistent  and  memorable  guest  experiences    
  • 33.            www.growthchampions.org                www.trainingvision.com.sg   Starwood  Hotels  has  created  mul9ple  leading  but   separate  branded  experiences  with  global  resonance   Dis2nc2ve   Branded   Experiences   (Innova2on)   Mul2-­‐ brand   Pordolio   (Proposi2on)   Consistent   Franchise   (Delivery)   Global   Connec2vity   (Trend)   Memorable   Standards   (Experience)  
  • 34.            www.growthchampions.org                www.trainingvision.com.sg   Google  excels  at  par9cipa9ve  product  development   that  supports  incessant  adjacent  sector  disrup9on  
  • 35.            www.growthchampions.org                www.trainingvision.com.sg   Google  has  been  innova9ng  across  mul9ple  sectors   while  building  the  world  most  connected  ad  agency   Growing   Reach  and   Relevance   (Innova2on)   Beeer   Informa2on   (Proposi2on)   Connected   Data   (Delivery)   Credible   Sources   (Trend)   Beta  based   Innova2on   (Experience)  
  • 36.            www.growthchampions.org                www.trainingvision.com.sg   Live  Na9on  has  aligned  around  change  in  its  industry   and  fully  repackaged  the  concert  value  proposi9on  
  • 37.            www.growthchampions.org                www.trainingvision.com.sg   While  the  cost  to  access  music  has  declined,  Live   Na9on  has  premiumised  the  mass  live  experience   360  Wrap   Star  Deals   (Innova2on)   Access  to   the  Top   Acts   (Proposi2on)   Exclusive   Partners   (Delivery)   Live   Experiences   (Trend)   Seamless   Integra2on   (Experience)  
  • 38.            www.growthchampions.org                www.trainingvision.com.sg   Zipcar  brings  vehicle  affordable  access  by  the  hour   into  the  neighbourhood  and  changes  rental  models  
  • 39.            www.growthchampions.org                www.trainingvision.com.sg   By  shi=ing  both  pricing  and  access  models,  Zipcar  is   making  flexible  access  more  popular  than  ownership     Replace   Urban  Car   Ownership   (Innova2on)   Flexible   Access   (Proposi2on)   Availability   Guarantee   (Delivery)   Access  not   Ownership   (Trend)   Easy  and   Local   (Experience)  
  • 40.            www.growthchampions.org                www.trainingvision.com.sg   Narayana  Hrundayalaya  leads  in  efficient  surgery   through  integrated  process  and  business  innova9on  
  • 41.            www.growthchampions.org                www.trainingvision.com.sg   As  a  centre  of  exper9se  Naranaya  Hrundayalaya  is   the  place  to  go  for  doctors  and  pa9ents  globally   Systema2c   Factory   (Innova2on)   Best  for   Less   (Proposi2on)   Op2mised   Process   (Delivery)   Medical   Tourism   (Trend)   Fast  and   Efficient   (Experience)  
  • 42.            www.growthchampions.org                www.trainingvision.com.sg   Across  Africa  M-­‐Pesa  has  proven  that  money  transfer   via  mobile  is  viable  at  the  booom  of  the  pyramid  
  • 43.            www.growthchampions.org                www.trainingvision.com.sg   M-­‐Pesa  is  scaling  fast  as  a  trusted  plaqorm  with   momentum  building  to  a  wider  porqolio  and  reach   Step  change   for  the   Unbanked   (Innova2on)   Low  Cost   Transfer   (Proposi2on)   Agent   Networks   (Delivery)   Pervasive Mobile   (Trend)   Simple   and   Trusted   (Experience)  
  • 44.            www.growthchampions.org                www.trainingvision.com.sg   AA  Drivesafe  has  made  pay  as  you  drive  insurance   accessible  through  rewarding  behaviour  change    
  • 45.            www.growthchampions.org                www.trainingvision.com.sg   Improving  on  previous  models  AA  Drivesafe  provides   transparent  cheaper  car  insurance  for  safer  drivers   Cheaper   insurance   for  safe   drivers   (Innova2on)   Visible   Choice   (Proposi2on)   Partner   with   Networks   (Delivery)   Real  Time   Tracking   (Trend)   Clear   Payback   (Experience)  
  • 46.            www.growthchampions.org                www.trainingvision.com.sg   Ci9zinvestor  is  bringing  direct  local  benefit  to  those   wishing  to  invest  in  social  innova9on  and  ac9on  
  • 47.            www.growthchampions.org                www.trainingvision.com.sg   By  matching  tangible  needs  to  investors  Ci9zinvestor   is  efficiently  by-­‐passing  local  government  ac9vi9es   Transparent   Marketplace   (Innova2on)   Invest  in   Local   (Proposi2on)   Collec2ve   Ac2on   (Delivery)   Crowd-­‐ funding   (Trend)   Social   Impact   (Experience)  
  • 48.            www.growthchampions.org                www.trainingvision.com.sg   Zopa  is  a  pioneer  in  peer-­‐to-­‐peer  banking  that  shares   efficiencies  with  both  savers  and  those  seeking  loans  
  • 49.            www.growthchampions.org                www.trainingvision.com.sg   By  crea9ng  a  more  efficient  and  trusted  system  Zopa   and  co  have  the  poten9al  to  disrupt  the  mainstream   Community   Bond   Market   (Innova2on)   Beeer   Rates   (Proposi2on)   Using   Dispersed   Scale   (Delivery)   Power  of   Networks   (Trend)   Simple   and   Trusted   (Experience)  
  • 50.            www.growthchampions.org                www.trainingvision.com.sg   Mo9f  is  demys9fying  the  fund  management  arena  by   giving  a  plaqorm  to  those  with  the  best  ideas  
  • 51.            www.growthchampions.org                www.trainingvision.com.sg   Investors  can  put  their  money  behind  the  best   concepts  that  Mo9f  makes  clear  to  everyone   Demys2fying   Fund   Management     (Innova2on)   Access  High   Performers   (Proposi2on)   Credible   Investment   Engine   (Delivery)   ShiY  in   Trust   (Trend)   Informed   Inves2ng   (Experience)  
  • 52.            www.growthchampions.org                www.trainingvision.com.sg   Qcue’s  approach  to  real-­‐9me  dynamic  pricing  of   9ckets  is  helping  improve  the  market  efficiency  
  • 53.            www.growthchampions.org                www.trainingvision.com.sg   In  providing  transparency  on  value  op9ons,  Qcue   helps  all  key  event  players  maximise  their  revenues   Accurate   Ticket   Pricing   (Innova2on)   Op2mise   Yield   (Proposi2on)   Enabling   SoYware   (Delivery)   Dynamic   Pricing   (Trend)   Real-­‐2me   Insight   (Experience)  
  • 54.            www.growthchampions.org                www.trainingvision.com.sg   Across  these  ‘next  genera9on’  service  innova9ons,   the  four  key  themes  are  all  evident  and  significant   •  Developed  in  closer  partnership  with  others  especially  including  customers   Co-­‐crea2on   •  Take  advantage  of  interac9vity,  social  networks  and  shi=  towards  seman9c  web   Web  2.0   •  Adopt  and  adapt  new  mechanisms  for  tangible  and  intangible  value  crea9on   New  Business  Models   •  Underpinned  by  changes  in  how  people  and  organiza9ons  wish  to  share  value   New  Value  ShiYs  
  • 55.            www.growthchampions.org                www.trainingvision.com.sg   NEXT  GENERATION  SERVICE  INNOVATION:   BUSINESS  IMPACT    
  • 56.            www.growthchampions.org                www.trainingvision.com.sg   This  third  session  uses  the  case  studies  so  that  you   see  which  have  greatest  relevance  for  your  business   The  aim  of  this  session  is  four-­‐fold:   §  Allow  you  to  consider  the  case  studies  more   §  Encourage  you  to  think  of  what  lessons  they  may  have  for  you   §  Map  those  which  highest  poten9al  impact  and  relevance   §  Select  and  discuss  the  few  key  case  studies  that  have  greatest  insight    
  • 57.            www.growthchampions.org                www.trainingvision.com.sg   First  use  your  case  study  cards  and  sort  them  by  their   poten9al  impact  to  the  market  in  which  you  operate   Increasing  poten2al  impact  to  your  market     Low   High  
  • 58.            www.growthchampions.org                www.trainingvision.com.sg   Now  thinking  more  specifically  about  your  business,   raise  and  lower  the  cards  to  sort  them  by  relevance      Increasing  poten2al  relevance  to  your  business   Low   High  
  • 59.            www.growthchampions.org                www.trainingvision.com.sg   Your  matrix  should  now  clearly  highlight  those  case   studies  from  which  you  think  there  is  most  to  learn   High   Relevance  /   Low  Poten9al   Impact   High   Relevance  /   High   Poten9al   Impact   Low   Relevance  /   Low  Impact   Low   Relevance  /   High   Poten9al   Impact   Example  outcome:  
  • 60.            www.growthchampions.org                www.trainingvision.com.sg   NEXT  GENERATION  SERVICE  INNOVATION:   TOOLS  TO  RETHINK  SERVICE  INNOVATION    
  • 61.            www.growthchampions.org                www.trainingvision.com.sg   This  final  session  pilots  four  different  tools  to  help   iden9fy  game-­‐changing  service  concepts     §  Parallel  View  –  What  if  X,  Y  or  Z  were  running  our  business   §  Developing  scenarios  of  top  case  study  examples  taking  control   §  Good  at  highligh9ng  different  cultural  and  strategic  priori9es   §  Value  Innova2on  and  Blue  Ocean  Strategy   §  Using  this  well  regarded  approach  to  reconfigure  value  proposi9ons   §  Provides  a  clear  approach  for  refocusing  on  the  customer   §  Lean  Thinking   §  Taking  out  what  does  not  add  value  and  reusing  freed  resources   §  Very  good  at  helping  firms  seeing  how  they  can  ‘do  things  beoer’   §  Destroy  Your  Own  Business   §  Approach  for  rethinking  how  to  create  value  if  free  of  legacy   §  Excellent  way  of  s9mula9ng  people  around  ‘doing  beoer  things’  
  • 62.            www.growthchampions.org                www.trainingvision.com.sg   Parallel  Views  help  us  think  about  how  other  brands   would  deliver  a  beoer  /  different  service  experience   §  Principle  based  on  looking  at  issue  through  other’s  eyes   §  Can  be  used  for  whole  new  service  crea2on  or  experience  innova2on   §  Works  well  if  choosing  organisa2ons  both  in  your  sector  and  outside   §  Best  if  you  push  the  boundaries  and  go  for  extremes   §  Focus  on  revolu2onary  changes  that  other  brands  could  do  
  • 63.            www.growthchampions.org                www.trainingvision.com.sg   Parallel  Views  –  Approach  Overview     Select   •  Choose  two   different   brands   known  for   innova9on   in  service   experience   Suspend   •  Ignore  your   exis9ng  and   legacy  ways   of  service   delivery  in   your  market   Change   •  Discuss  how   the  other   brands   could   deliver  a   beoer   experience   Detail   •  Spell  out   the  key   components   of  the  new   service   innova9on   Impact   •  Discuss   which  of   these  could   be  achieved   by  your   business   and  how  
  • 64.            www.growthchampions.org                www.trainingvision.com.sg   Value  innova9on,  is  the  simultaneous  pursuit  of   differen9a9on  and  low  cost,  crea9ng  a  leap  in  value     §  This  is  the  cornerstone  of  ‘blue  ocean   strategy’  in  crea2ng  value  for  both   buyers  and  the  company:   §  Value  to  buyers  comes  from  the   offering’s  u9lity  minus  its  price   §  Value  to  the  company  is  generated   from  the  offering’s  price  minus  its   cost   §  So,  value  innova2on  is  achieved   only  when  the  whole  system  of   u9lity,  price,  and  cost  is  aligned.  
  • 65.            www.growthchampions.org                www.trainingvision.com.sg   One  of  the  earliest  successful  uses  of  Value   Innova9on  thinking  was  for  Formule  1  hotels  
  • 66.            www.growthchampions.org                www.trainingvision.com.sg   Value  Innova9on  –  Approach  Overview   §  Iden2fy  the  key  factors  on  the  service  delivery  for  customer  and  supplier   §  Plot  and  map  a  couple  of  current  leading  offers  as  curves   §  Break  the  value-­‐cost  tradeoff  by  answering  the  following  ques2ons:   1.  What  factors  can  be  eliminated  that  the  industry  has  taken  for  granted?   2.  What  factors  can  be  reduced  well  below  the  industry’s  standard?   3.  What  factors  can  be  raised  well  above  the  industry’s  standard?   4.  What  factors  can  be  created  that  the  industry  has  never  offered?   §  Redraw  the  value  curve  of  a  new  service  innova2on  that  changes  the  game   §  Discuss  the  new  value  proposi2on  and  how  to  delivery  it  effec2vely        
  • 67.            www.growthchampions.org                www.trainingvision.com.sg   Lean  Thinking  first  evolved  as  a  technique  used  in   manufacturing  but  is  now  applied  to  many  areas  
  • 68.            www.growthchampions.org                www.trainingvision.com.sg   There  are  five  overriding  principles  to  Lean  Thinking   that  have  helped  many  reinvent  their  service  delivery   Iden2fy  Customers  and  Specify  Value     §  Only  a  frac9on  of  total  effort  in  any  organisa9on  adds  value  for  the  end  customer     §  Need  to  clearly  define  Value  for  a  service  from  the  end  customer’s  perspec9ve     §  All  the  non  value  ac9vi9es  -­‐  or  waste  -­‐  can  be  targeted  for  removal   Iden2fy  and  Map  the  Value  Stream     §  The  Value  Stream  is  the  end-­‐to-­‐end  ac9vi9es  across  the  firm  delivering  the  service.     §  Understand  what  your  customer  wants  and  how  you  are  delivering  that  to  them.   Create  Flow  by  Elimina2ng  Waste     §  When  you  map  the  Value  Stream  you  will  find  less  than  half  of  ac9vi9es  add  value.     §  Elimina9ng  this  waste  ensures  that  your  service  “flows”  beoer  to  the  customer.   Respond  to  Customer  Pull     §  See  the  customer  demand  and  then  create  your  process  to  respond  to  this.   §  Produce  only  what  the  customer  wants  when  the  customer  wants  it.   Pursue  Perfec2on     §  Radically  reorganising  individual  process  steps  to  eliminate  waste.     §  Aim  for  perfec9on,  where  every  ac9on  adds  value  for  the  end  customer.  
  • 69.            www.growthchampions.org                www.trainingvision.com.sg   Lean  Thinking  –  Approach  Overview   Source:  Peter  Hines,  Lean  Enterprise  Research  Centre,  Cardiff  Business  School   Iden9fy  Value   Map  the  Value   Stream   Create     Flow   Establish     Pull   Seek  Perfec9on  
  • 70.            www.growthchampions.org                www.trainingvision.com.sg   Destroy  Your  Own  Business  was  an  approach  to   radical  rethinking  that  grew  out  of  GE  in  2000   Back  in  2000  GE  created  the  destroy-­‐your-­‐business  exercise     §  It  forced  every  company  business  unit  to  benchmark  compe9tors,  develop   a  Web-­‐based  business  plan  to  erode  its  own  customer  base  and  then   change  its  own  business  opera9ons  to  respond  to  the  threat.   Since  then  the  approach  has  evolved  into  a  co-­‐crea2on  experience   §  Working  with  customers  to  co-­‐define  new  ways  of  mee9ng  new  needs   Core  principle  is  well  proven:   §  If  you  are  freed  from  exis9ng  prac9ce  and  assets,  how  would  you  use  new   approaches  available  today  to  take  #1  spot  in  your  sector?   §  What  can  your  exis9ng  business  do  to  take  advantage  of  this  by  innova9ng   the  service  proposi9on  to  customers?  
  • 71.            www.growthchampions.org                www.trainingvision.com.sg