Service Innovation
Definition
• A service innovation is a service product or
service process that is based on some
technology or systematic method.
• The innovation does not necessarily relate to
the novelty of the technology itself but the
innovation often lies in the non-technological
areas.
• e.g. of Service innovations include product use
enhancements, maintenance plans, customer
support, information and education,
warranties, and guarantees.
• Service innovations can be for new solutions in
the customer interface, new distribution methods,
novel application of technology in the service
process, new forms of operation with the supply
chain or new ways to organize and manage
services.
• Service innovations ensure and enhance the
utility, performance, and apparent value of an
offering.
Types
• Product
• Process
• Delivery
• Strategic
• Managerial
• Marketing.
EXAMPLE
• A new IT system (technology dimension) may be used to enable
customer self-service (interface dimension) as in the case of a bank
contacting its customers
• The ability to track one’s order or the location of an item that one
has posted or is expecting to receive.
• Services may be delivered electronically, as in the case of much
online banking and cash withdrawals from ATMs.
• A new service allowing a client to examine various options and
calculate what they would be paying with different types of
accounts.
• A new service will often require a new service delivery system, and
changes at the client interface.
Design led Innovation
• Design-led innovation is a process that shifts the role of
a designer to work across an organization to radically
change a company’s view of the value proposition
offered to customers (Kyffin & Gardien, 2009),
• to co-design (Chesbrough & Schwartz, 2007), and to
generate a unique and sustainable competitive
advantage (Bucolo & Matthews, 2011b).
• It has emerged as an approach that assists companies
to develop new capabilities to respond to changing
markets.
Definition
• Design-led innovation is broadly defined
as a method that allows a company to
consider and evaluate radically new
propositions from multiple perspectives,
typically spanning user needs, business
requirements, and technology demands
(Bucolo et al., 2012)
• Design is core to a company’s vision, strategy,
culture, leadership, and development
processes.
Design Led Innovation Framework (Adapted from Bucolo et al.,
2012).
Elements of Design led innovation
