Systematic Service Innovation - Brigham Young...
Transcript of Systematic Service Innovation - Brigham Young...
Dr. Scott E. Sampson
Dr. Scott E. Sampson
James M. Passey Professor
Brigham Young University
Provo, Utah, USA
Systematic Service
Innovation
Systematic Service Innovation 1
©2014-rev
Dr. Scott E. Sampson
What is innovation?
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Dr. Scott E. Sampson
Innovation
“the application of better solutions that meet new
requirements, inarticulated needs, or existing
market needs.”
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Dr. Scott E. Sampson
Service innovations
ATM
curved shower curtain rod in hotels
frequent flier programs
restaurant concepts
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Dr. Scott E. Sampson
Where does innovation come from?
Product innovation
“Engineering”
Service innovation
“Engineering?”
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Dr. Scott E. Sampson
What is the process of innovation?Product innovation process…
1. Identify a market opportunity.
2. Turn it over to engineers.
3. Prototype.
4. Product design.
5. Production design.
6. Testing.
7. Release to “production.”
Service innovation process…
1. Identify a market opportunity.
2. Then what???
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Dr. Scott E. Sampson
What is service innovation?
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Dr. Scott E. Sampson
Systematic Service Innovation
using PCN Analysis
Pizza case study
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Dr. Scott E. Sampson
Service Innovation using PCN Analysis
1. Document a base process.
2. Select steps to focus on for innovation.
3. Enumerate and interpret process options.
4. Identify process configuration with desirable
operating characteristics.
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Dr. Scott E. Sampson
Service Innovation using PCN Analysis
1. Document
2. Select
3. Enumerate
4. Identify
10Systematic Service Innovation
Dr. Scott E. Sampson
Service Innovation using PCN Analysis
1. Document a base process.
2. Select
3. Enumerate
4. Identify
11Systematic Service Innovation
Dr. Scott E. Sampson
1. Document a base process.
Provider Customer
Pizza Restaurant Pizza Consumer
Independent
processing
Surrogate
interaction
Direct
interaction
Direct
interaction
Surrogate
interaction
Independent
processing
develop
appetite
eat
pizza
return
home
serve
pizza
wait to be
seatedseat customer
review menu
present
check
prepare
check
pay
check
eat
leftovers
wait for
pizza
create order
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prepare
components
preheat
ovens
maintain
supplies
develop
recipes
cook
pizza
assemble
pizza
Dr. Scott E. Sampson
Service Innovation using PCN Analysis
1. Document a base process.
2. Select steps to focus on for innovation.
3. Enumerate
4. Identify
13Systematic Service Innovation
Dr. Scott E. Sampson
2. Select steps to focus on for innovation.
Provider Customer
Pizza Restaurant Pizza Consumer
Independent
processing
Surrogate
interaction
Direct
interaction
Direct
interaction
Surrogate
interaction
Independent
processing
develop
appetite
eat
pizza
return
home
serve
pizza
wait to be
seatedseat customer
review menu
present
check
prepare
check
pay
check
eat
leftovers
wait for
pizza
create order
Systematic Service Innovation 14
prepare
components
preheat
ovens
maintain
supplies
develop
recipes
cook
pizza
assemble
pizza
Dr. Scott E. Sampson
Service Innovation using PCN Analysis
1. Document a base process.
2. Select steps to focus on for innovation.
3. Enumerate and interpret process options.
4. Identify
15Systematic Service Innovation
Dr. Scott E. Sampson
3. Enumerate and interpret process options.
Provider Customer
Pizza Restaurant Pizza Consumer
Independent
processing
Surrogate
interaction
Direct
interaction
Direct
interaction
Surrogate
interaction
Independent
processing
develop
appetite
eat
pizza
return
home
serve
pizza
wait to be
seatedseat customer
review menu
present
check
prepare
check
pay
check
eat
leftovers
wait for
pizza
create order
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prepare
components
preheat
ovens
maintain
supplies
develop
recipes
cook
pizza
assemble
pizza
Dr. Scott E. Sampson
3. Enumerate and interpret process options.
Provider Customer
Pizza Restaurant Pizza Consumer
Independent
processing
Surrogate
interaction
Direct
interaction
Direct
interaction
Surrogate
interaction
Independent
processing
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assemble
pizza
cook
pizza
Dr. Scott E. Sampson
Provider Customer
Pizza Restaurant Pizza Consumer
Independent
processing
Surrogate
interaction
Direct
interaction
Direct
interaction
Surrogate
interaction
Independent
processing
make to
ordermake together
make it
yourself
make to
stock
make it
at home
3. Enumerate and interpret process options.
assemble
pizza
cook to
order
cook it
at home
cook to
stock
cook it together cook it
yourself
(self serve)
cook
pizza
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Dr. Scott E. Sampson
Provider Customer
Pizza Restaurant Pizza Consumer
Independent
processing
Surrogate
interaction
Direct
interaction
Direct
interaction
Surrogate
interaction
Independent
processing
make to
ordermake together
make it
yourself
make to
stock
make it
at home
Process Configuration #1
assemble
pizza
cook to
ordercook to
stock
cook
pizza
cook it together cook it
yourself
(self serve)
cook it
at home
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Dr. Scott E. Sampson
Provider Customer
Pizza Restaurant Pizza Consumer
Independent
processing
Surrogate
interaction
Direct
interaction
Direct
interaction
Surrogate
interaction
Independent
processing
make to
ordermake together
make it
yourself
make to
stock
make it
at home
Process Configuration #2
assemble
pizza
cook to
ordercook to
stock
cook
pizza
cook it together cook it
yourself
(self serve)
cook it
at home
Systematic Service Innovation 20
Dr. Scott E. Sampson
Provider Customer
Pizza Restaurant Pizza Consumer
Independent
processing
Surrogate
interaction
Direct
interaction
Direct
interaction
Surrogate
interaction
Independent
processing
make to
ordermake together
make it
yourself
make to
stock
make it
at home
Process Configuration #3
assemble
pizza
cook to
ordercook to
stock
cook
pizza
cook it together cook it
yourself
(self serve)
cook it
at home
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Pizze-da-Firenze
Dr. Scott E. Sampson
Provider Customer
Pizza Restaurant Pizza Consumer
Independent
processing
Surrogate
interaction
Direct
interaction
Direct
interaction
Surrogate
interaction
Independent
processing
Process Configuration #4
assemble
pizza
cook
pizza
make to
ordermake together
make it
yourself
make to
stock
make it
at home
cook to
ordercook to
stock
cook it together cook it
yourself
(self serve)
cook it
at home
Systematic Service Innovation 22
Dr. Scott E. Sampson
Provider Customer
Pizza Restaurant Pizza Consumer
Independent
processing
Surrogate
interaction
Direct
interaction
Direct
interaction
Surrogate
interaction
Independent
processing
Process Configuration #5
assemble
pizza
cook
pizza
make to
ordermake together
make it
yourself
make to
stock
make it
at home
cook to
ordercook to
stock
cook it together cook it
yourself
(self serve)
cook it
at home
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Dr. Scott E. Sampson
Provider Customer
Pizza Restaurant Pizza Consumer
Independent
processing
Surrogate
interaction
Direct
interaction
Direct
interaction
Surrogate
interaction
Independent
processing
Process Configuration #6
assemble
pizza
cook
pizza
make to
ordermake together
make it
yourself
make to
stock
make it
at home
cook to
ordercook to
stock
cook it together cook it
yourself
(self serve)
cook it
at home
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Dr. Scott E. Sampson
make to
ordermake together
make it
yourself
make to
stock
make it
at home
cook to
ordercook to
stock
cook it together cook it
yourself
(self serve)
cook it
at home
Provider Customer
Pizza Restaurant Pizza Consumer
Independent
processing
Surrogate
interaction
Direct
interaction
Direct
interaction
Surrogate
interaction
Independent
processing
assemble
pizza
cook
pizza
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Process Configuration #7
cook
pizza
Dr. Scott E. Sampson
make to
ordermake together
make it
yourself
make to
stock
make it
at home
cook to
ordercook to
stock
cook it together cook it
yourself
(self serve)
cook it
at home
Provider Customer
Pizza Restaurant Pizza Consumer
Independent
processing
Surrogate
interaction
Direct
interaction
Direct
interaction
Surrogate
interaction
Independent
processing
Process Configuration #8
assemble
pizza
cook
pizza
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Dr. Scott E. Sampson
Provider Customer
Pizza Restaurant Pizza Consumer
Independent
processing
Surrogate
interaction
Direct
interaction
Direct
interaction
Surrogate
interaction
Independent
processing
Process Configuration #9
cook
pizza
assemble
pizza
make to
ordermake together
make it
yourself
make to
stock
make it
at home
cook to
ordercook to
stock
cook it together cook it
yourself
(self serve)
cook it
at home
Systematic Service Innovation 27
Dr. Scott E. Sampson
Service Innovation using PCN Analysis
1. Document a base process.
2. Select steps to focus on for innovation.
3. Enumerate and interpret process options.
4. Identify process configuration with
desirable operating characteristics.
28Systematic Service Innovation
Dr. Scott E. Sampson
Provider Customer
Pizza Restaurant Pizza Consumer
Independent
processing
Surrogate
interaction
Direct
interaction
Direct
interaction
Surrogate
interaction
Independent
processing
make to
ordermake together
make it
yourself
make to
stock
make it
at home
Operating characteristics
assemble
pizza
cook to
order
cook it
at home
cook to
stock
cook it together
cook it
yourself
(self serve)
cook
pizza
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assemble
pizza
cook
pizza
assemble
pizza
cook
pizza
assemble
pizza
cook
pizza
assemble
pizza
cook
pizza
greater scale and expertise greater customization potential
lowest
operating efficiency
process requires
specialized skillsprocess requires
customized attention
process
requires both
Process positioning decision…
or low-cost labor and
provider wants control
Dr. Scott E. Sampson
Optimized design?
Provider Customer
Pizza Restaurant Pizza Consumer
Independent
processing
Surrogate
interaction
Direct
interaction
Direct
interaction
Surrogate
interaction
Independent
processing
deliver pizza
assemble
pizza base
wrap
pizza
cook
pizza
eat
pizza
accept
offer
notify nearby
customers
of offer
want pizza?
yes
drive to
neighborhood
sell toppings
add
toppings
student team Ryan,
Rachel, and Clarke
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Dr. Scott E. Sampson
Value proposition?
Provider Customer
Pizza Restaurant Pizza Consumer
Independent
processing
Surrogate
interaction
Direct
interaction
Direct
interaction
Surrogate
interaction
Independent
processing
deliver pizza
assemble
pizza base
wrap
pizza
cook
pizza
eat
pizza
accept
offer
notify nearby
customers
of offer
want pizza?
yes
drive to
neighborhood
sell toppings
add
toppings
greater scale and expertise greater customization potential
lowest
operating efficiency
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Dr. Scott E. Sampson
Educational example
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Dr. Scott E. Sampson
Lecture course
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Professor Student
process domain process domain
Independent
processing
Surrogate
interaction
Direct interaction Surrogate
interaction
Independent
processing
need
knowledge
enroll in
course
acquire
book
more
material?
no
have
knowledge
prepare
syllabus
give
lecture
design
course
prepare
lecture
listen and
take notes
review
book and
notes
go to
class
acquire
knowledge
take
exam
yes
grade
exam
have grade
write
exam
ask
questions
give
answers
Dr. Scott E. Sampson
Course configuration #1
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Professor Student
process domain process domain
Independent
processing
Surrogate
interaction
Direct interaction Surrogate
interaction
Independent
processing
give
lecture
prepare
lecture
ask
questions
give
answers
Dr. Scott E. Sampson
Course configuration #1
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Professor Student
process domain process domain
Independent
processing
Surrogate
interaction
Direct interaction Surrogate
interaction
Independent
processing
ask
questions
prepare
lecture
give
lecture
give
answers
Dr. Scott E. Sampson
Course configuration #2
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Professor Student
process domain process domain
Independent
processing
Surrogate
interaction
Direct interaction Surrogate
interaction
Independent
processing
ask
questions
prepare
lecture
give
lecture
give
answers
Dr. Scott E. Sampson
Course configuration #2
Systematic Service Innovation 37
Professor Student
process domain process domain
Independent
processing
Surrogate
interaction
Direct interaction Surrogate
interaction
Independent
processing
prepare
lecture
ask
questions
give
lecture
give
answers
Dr. Scott E. Sampson
Course configuration #3
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Professor Student
process domain process domain
Independent
processing
Surrogate
interaction
Direct interaction Surrogate
interaction
Independent
processing
prepare
lecture
ask
questions
give
lecture
give
answers
Dr. Scott E. Sampson
Course configuration #3
Systematic Service Innovation 39
Professor Student
process domain process domain
Independent
processing
Surrogate
interaction
Direct interaction Surrogate
interaction
Independent
processing
ask
questions
give
lecture
give
answers
prepare
lecture
Dr. Scott E. Sampson
Course configuration #4
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Professor Student
process domain process domain
Independent
processing
Surrogate
interaction
Direct interaction Surrogate
interaction
Independent
processing
ask
questions
give
lecture
give
answers
prepare
lecture
Dr. Scott E. Sampson
Course configuration #4
Systematic Service Innovation 41
Professor Student
process domain process domain
Independent
processing
Surrogate
interaction
Direct interaction Surrogate
interaction
Independent
processing
prepare
lecture
ask
questions
give
lecture
give
answers
Dr. Scott E. Sampson
Course configuration #5
Systematic Service Innovation 42
Professor Student
process domain process domain
Independent
processing
Surrogate
interaction
Direct interaction Surrogate
interaction
Independent
processing
prepare
lecture
give
lecture
give
answers
ask
questions
Dr. Scott E. Sampson
Course configuration #5
Systematic Service Innovation 43
Professor Student
process domain process domain
Independent
processing
Surrogate
interaction
Direct interaction Surrogate
interaction
Independent
processing
prepare
lecture
give
lecture
ask
questions
give
answers
Dr. Scott E. Sampson
Course configuration #6
Systematic Service Innovation 44
Professor Student
process domain process domain
Independent
processing
Surrogate
interaction
Direct interaction Surrogate
interaction
Independent
processing
prepare
lecture
give
lecture
ask
questions
give
answers
ask
questions
ask
questions
give
answers
Dr. Scott E. Sampson
Course configuration #6
Systematic Service Innovation 45
Professor Student
process domain process domain
Independent
processing
Surrogate
interaction
Direct interaction Surrogate
interaction
Independent
processing
prepare
lecture
give
lecture
ask
questions
ask
questions
give
answers
ask
questions
give
answers
Dr. Scott E. Sampson
Operating characteristics?
Systematic Service Innovation 46
Professor Student
process domain process domain
Independent
processing
Surrogate
interaction
Direct interaction Surrogate
interaction
Independent
processing
prepare
lecture
give
lecture
ask
questions
ask
questions
give
answers
ask
questions
give
answers
“skillful
customization”
Dr. Scott E. Sampson
Summary: Innovation using PCN Analysis
1. Document a base process.
• baseline PCN Diagram
2. Select steps to focus on for innovation.
• improving value offering
• improving economics
3. Enumerate and interpret process options.
• principles of Strategic Process Positioning
4. Identify process configuration with desirable
operating characteristics.
47Systematic Service Innovation