IAE Unit-1.2

Download as pdf or txt
Download as pdf or txt
You are on page 1of 41

Service Innovation

Service innovations ensure and enhance the utility,


performance, and apparent value of an offering.
They make a product easier to try, use, and enjoy;
they reveal features and functionality customers
might otherwise overlook; and they fix problems
and smooth rough patches in the customer
journey. Done well, they elevate even bland and
average products into compelling experiences that
customers come back for again and again.
Common examples of Service innovations
include product use enhancements, maintenance
plans, customer support, information and
education, warranties, and guarantees. While
human beings are still often at the heart here, this
type of innovation is increasingly delivered
through electronic interfaces, remote
communications, automated technologies, and
other surprisingly impersonal means. Service can
be the most striking and prominent part of the
customer experience, or an invisible safety net
that customers sense but never see.
Design-led innovation

Design-led innovation has recently emerged as an approach that


assists companies to develop new capabilities to respond to changing
markets.

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 , to co-design , and to
generate a unique and sustainable competitive advantage .

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 .

Key to this process is that design is core to a company’s vision,


strategy, culture, leadership, and development processes.
The design-led innovation framework outlined below (Figure 1),
provides a conceptual structure to assist the development of
innovation through collaboration across the entire organization; it
integrates the operational functions with the strategic vision by
combining internal and external sources.
Design-led innovation builds on this theory by internally aligning the
solution with the company's strategy, resources, and brand. Design and
innovation as organizational processes work with the staff who deliver the
resultant innovation, not in isolation from organizational systems. Design-
led innovation can also align corporate ideologies to fit and potentially
leverage the company's internal capabilities, resources, and brand (business
model) in order to generate an innovative solution that creates a
competitive advantage.

Design thinking is a foundational activity within design-led innovation, by


leveraging a creative systems perspective that integrates the design of the
business models. Design-led innovation is a philosophy that “examines
every core facet of the business, to realign business strategy with customer
needs and possible market futures” . Design-led innovation is derived
through a creative interrelationship between these fundamental business
elements to generate true value for the customer and to capture profits for
growth, as shown in Figure 2.
Figure 2. Design-led innovation (DLI) as derived in the
intersection of fundamental business elements

You might also like