The document outlines an upcoming workshop on service innovation. It will use stimuli and case studies to challenge participants' thinking across four key areas: the context of service innovation; case studies of successful innovations; business impact; and tools for rethinking service innovation. The workshop aims to stimulate new ideas and prioritize next steps through a structured learning process involving reflection. It will cover the evolution of service innovation as a discipline and different frameworks for classifying its dimensions. The workshop seeks to explore how service innovation is moving into areas like co-creation and new business models.
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
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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
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NEXT
GENERATION
SERVICE
INNOVATION:
THE
CONTEXT
FOR
SERVICE
INNOVATION
6.
www.growthchampions.org
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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
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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
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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
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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.
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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.
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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.
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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.
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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.
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Rolls-‐Royce
has
reconfigured
a
high
tech
product
and
support
rela9onship
into
a
long
term
service
contract
23.
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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.
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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.
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Amazon
is
a
massively
efficient
business
delivering
customer
sa9sfac9on
via
proprietary
technology
27.
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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.
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Under
Singapore
Airline’s
ownership,
Virgin
Atlan9c
has
consistently
reinvented
the
flying
experience
29.
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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.
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Bhar9
Airtel’s
extreme
outsourcing
business
model
enabled
it
to
scale
quickly
and
it
is
now
the
world
#3
31.
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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.
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Starwood
drives
high
loyalty
by
efficiently
delivering
consistent
and
memorable
guest
experiences
33.
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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.
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Google
excels
at
par9cipa9ve
product
development
that
supports
incessant
adjacent
sector
disrup9on
35.
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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.
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Live
Na9on
has
aligned
around
change
in
its
industry
and
fully
repackaged
the
concert
value
proposi9on
37.
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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.
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Zipcar
brings
vehicle
affordable
access
by
the
hour
into
the
neighbourhood
and
changes
rental
models
39.
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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.
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Narayana
Hrundayalaya
leads
in
efficient
surgery
through
integrated
process
and
business
innova9on
41.
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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.
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Across
Africa
M-‐Pesa
has
proven
that
money
transfer
via
mobile
is
viable
at
the
booom
of
the
pyramid
43.
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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.
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AA
Drivesafe
has
made
pay
as
you
drive
insurance
accessible
through
rewarding
behaviour
change
45.
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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.
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Ci9zinvestor
is
bringing
direct
local
benefit
to
those
wishing
to
invest
in
social
innova9on
and
ac9on
47.
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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.
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Zopa
is
a
pioneer
in
peer-‐to-‐peer
banking
that
shares
efficiencies
with
both
savers
and
those
seeking
loans
49.
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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.
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Mo9f
is
demys9fying
the
fund
management
arena
by
giving
a
plaqorm
to
those
with
the
best
ideas
51.
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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.
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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.
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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.
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NEXT
GENERATION
SERVICE
INNOVATION:
BUSINESS
IMPACT
56.
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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
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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.
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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.
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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.
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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.
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www.trainingvision.com.sg
One
of
the
earliest
successful
uses
of
Value
Innova9on
thinking
was
for
Formule
1
hotels
66.
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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.
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www.trainingvision.com.sg
Lean
Thinking
first
evolved
as
a
technique
used
in
manufacturing
but
is
now
applied
to
many
areas
68.
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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.
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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.
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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?