Chapter 8 Service Innovation and Design CHALLENGES OF

Chapter 8: Service Innovation and Design CHALLENGES OF SERVICE INNOVATION AND DESIGN: • Oversimplification • Incompleteness • Subjectivity • Biased Interpretation IMPORTANT CONSIDERATIONS FOR SERVICE DESIGN Involve Customers and Employees Employ Service Design Thinking and Techniques Principles of behind Service Design Thinking 1. User-Centered (Customer-Centric): Designing your services based upon how they are experienced from the ‘customers perspective 2. Co-Creative: All stakeholder groups should be involved in the service design process 3. Sequencing: Services should be viewed and treated as a sequence of interrelated actions or events 4. Evidencing: Services are essentially intangible in nature and should be visualized in terms of ‘physical elements’ 5. Holistic: The entire environment in which the service exists and is delivered should be considered

TYPES OF SERVICE INNOVATION Service Offering Innovation: Types of change: • Major or Radical: Fed. Ex Small package OND • Start-up businesses: Online Banking • New service for currently served: Coffee bar in a book shop • Service line extensions : Restaurant with new menu • Service improvements: evening banking • Style changes: Revising logo Innovating around Customer Roles Innovation through Service Solutions Service Innovation through Interconnected Products

STAGES IN SERVICE INNOVATION AND DEVELOPMENT

Front-End Planning Business Strategy Development or Review New Service Strategy Development SERVICE BLUEPRINTING: A TECHNIQUE FOR SERVICE INNOVATION AND DESIGN What is a Service Blueprint?

Service Blueprint Example • Blueprint for Express Mail Delivery Service

Blueprint for Technology-Delivered Self-Service

Reading and Using Service Blueprint Benefits of Service Blueprinting • Provides a platform for innovation. • Recognizes roles and interdependencies among functions, people, and organizations. • Facilitates both strategic and tactical innovations. • Transfers and stores innovation and service knowledge. • Designs moments of truth from the customer’s point of view. • Suggests critical points for measurement and feedback in the service process. • Clarifies competitive positioning. • Provides understanding of the ideal customer experience.

• Building a Blueprint