Service Innovation: why is service innovation becoming more and more important for businesses?

Service Innovation

lunes 28 de enero de 13

Why is Service Innovation becoming more and more important for businesses ?


Businesses are changing


But why and how?


Thats the million dollar question, isn´t it?


...or probably the billion of billions question...


It would be easier if we

had a crystal ball to know it

best


Where should people start to search for an answer ?



The good news is that the answer is...


... within us,human people, from

our own human insights !


We need these insights to cope with today challenges

and for the future ones


“By 2025 two-

thirds of the

world´s

population will

be living in

cities”.- Challenges for the

future: Megatrends by

BASF


Technology has been the trigger for all the changes in

society



Technology, technology, yes but...


Technology has not worked by its own all this

time



It is true the importance of Technology, but no Tech

would have been innovative or transcendental without

Human application


Period !


It is said that businesses are becoming more and more towards being customer

centric, but why ?


Because human activity its what really triggers

Economy


Not Technology

by itself

“No computer,

machine or robot can

cope with the

individual need of

clients sufficiently”.

- Stefan Moritz, Practical Access to Service Design, 2005.


and at some point of the time this was forgotten.


now business men simply

wonder “ what went

wrong? ”


For centuries it was all about quantity...


“The product market is satisfied. Over the last years products got more and more similar”

-Stefan Moritz, Service Design

Researcher


Everything has been concentrated in the “mass production” topic without

relating it to people and to their real needs


...and now this is no longer competitive neither

sustainable.


So how does Service Innovation performs

here ?


Service Innovationis the ultimate strategy for

successful businesses


of any kind


Source: Stefan Moritz, 2012


Human activities are changing. The way we consume, work,

communicate, interact, everything is changing at a faster pace...



... so how can businesses adapt to all these changes and at the same time use

them as a competitive advantage?


With Service Design


Service Design

“Methodology to help improve or innovate

service experiences that result in more satisfied

customers and more profitable enterprises by

discovering and understanding the real

customer expectations and needs”.


so


Service Innovation as a result of Service Design should be on

top of mind of today Enterprises


and this worried guy


Service Innovation can help to create those new relationships

between organizations and clients

“The only sustainable competitive advantage is

knowledge of and engagement with

customers”

- Forrester report, Competitive Strategy in the Age of the

Customer


Through a more human approach to

their clients that happen to be


humans!



Makes total sense


“Clients are

complicated, they

have individual

needs and

expectations that

can´t be

standardized”.

- Stefan Moritz, Practical

Access to Service Design, 2005


Now just talking a little about the Service Sector in today´s

World Economy...


“Services are

becoming

increasingly

important for the

economy, up to 70%

of the GDP lies in the

service sector today”

- Leonard L. Berry, Creating New

Markets through Service Innovation,

MIT Sloan Management Review, 2006

GDP, Service sector composition in %

Hong KongBahamas

West BankFrance

United StatesLebanon

JapanTaiwan

UKCuba

BelgiumSingapurDenmark

ItalyPortugal

GermanyAustralia

New ZelandCanadaPoland

0 25 50 75 100

Source: www.cia.gov


http://www.cia.gov

http://www.cia.gov

The World bank recognizes: “Services industries increased their share on the World economy

during the past two decades, while

relative shares of agriculture and

industry shrank”.

- World bank. Retrieved the 2005-03-12 www.worldbank.org


http://www.world

http://www.world

and nowsome examples of Service Innovation



just to name a few


Knowing all this, we can proceed to answer...


Because Innovation

is the only way to create new Markets,


and specifically


Service Innovation means a big opportunity to offer a total new dimension of

value to Clients


and as a resultto Enterprises


Service Innovation is not only becoming more important for

businesses


Service Innovation is...


the Future of Businesses !


as simple as that


Thank you !by Lucía Reyes

[email protected]
