Have you ever heard of Service Innovation? If yes, then what else do you know about this concept? Generally, most people are unaware of this concept or even know they can't explain what it is all about. Service Innovation is undoubtedly a very interesting and crucial topic to know if you are interested in the Business Sector. So to know more about it, read further.
Concept of Service Innovation Process
The service innovation process can refer to a variety of things, including new or enhanced service products, as well as innovation in services. Though service products can contain technology features, this is frequently contrasted with "technological innovation." Service design and "new service development" are strongly linked to this meaning of the service innovation process.
It might also be characterised as innovative or enhanced ways of planning and creating services in service processes. This could involve service delivery system innovation, though it's more likely to be viewed as a service product innovation. This type of innovation can be technology, technique- or expertise-based, or it can be a question of work organisation.
Now that you know what it means, let's read what's the significance of service innovation.
Importance of Service Innovation Process
It has great significance in Business Field:
- Service innovation can be an effective strategy for a business to gain a long-term competitive advantage.
- Turning to or adopting service models may assist firms in overcoming the difficulty of maintaining growth in saturated markets, as well as the problem of commoditization.
- A service-based strategy can help businesses in a variety of ways. Adopting a service-based strategy, for example, can assist in improving service offerings, cost framework, delivery method, and technology.
While service innovation can and should happen in the service industry, it is not required. Non-services sectors, such as manufacturing enterprises that diversify their supply portfolio with value-added services, can also provide new and enhanced services.
Service Innovation: Theory and Process Strategy
Service innovation is helping companies develop new revenue sources by meeting their customers' demand to get things done in sectors ranging from heavy machinery to health care to financial services to consumer goods.
These service innovation basics are outlined in the book "Service Innovation: How to Go From Customer Needs to Breakthrough Services":
- People "lease" a credit card to make transactions, a doctor to evaluate and treat a disease, and education to advance their careers. Organisations can define client value in a way that guides enhancements to current services and the creation of totally new services by focusing service innovation on the task rather than the service itself.
- A job is a series of steps, and each one offers potential for service innovation. However, many businesses only provide value to clients if they take specific actions. Most credit card businesses, for example, concentrate on the payment stage while overlooking other milestones along the journey. What's the result? Many businesses miss out on lucrative prospects that are complementary to their current offerings.
- Both services and products are responses to customer demands. It is vital to first find the opportunities before designing solutions for a service or product. Almost all "solutions" contain services and products as part of their delivery.
- An organisation should evaluate the major ways in which services are built to develop unique services that separate them from the competition using certain measurements of consumer value.
Each of these processes in the service innovation process is part of our Outcome-Driven Innovation process.
About MIT ID Innovation
MIT ID innovation is an excellent institute of India that is well-known for providing a variety of innovation-based courses. The courses we offer are to make sure that the students learn more about service innovation and contribute to its process. If you want to learn more about MIT ID innovation, you can visit our website.