A new service idea is an innovation if it:
- Is an intentional change in the service provided
- Provides a new or substantially improved benefit to the customer
- Significantly improves the service firm’s profitability
- Can be duplicated from customer to customer Service firms innovate in three ways:
Changes to the service itself, or what is being offered. Innovative services are ones that did not exist before, or that have been substantially redesigned to meet customers’ needs more These innovations are the most obvious to your customer.
Changes to the service delivery process, or how the service is being provided. Innovative service processes include new or improved production, delivery, or distribution methods often involving the incorporation of new information technologies. The process innovation may involve significant changes in the roles of staff, strategic partners, and/or customers. The most typical forms of innovation include increased accessibility and changes in the degree of self-service.
Changes to the organizational and managerial structure, or how service provision is Organisational innovations include new or improved managerial techniques (e.g., total quality management, quality assurance system), significantly revised organizational structures, and/or the implementation of new or substantially changed corporate strategies. These innovations are the least obvious to your customer.
