WebTalk 1: Futurize Your Business - the Value of Service Innovation for Your Organisation
Afternoon. And welcome to our first web, talk and service innovation my. Name is Damon eNOS I'm an innovation, coach and trainer at aluminum, and I will also be the host of his first web, doc am i right I have associate, professor, Dominic mark specialized. In service innovation and it, will tell more about service. Invasion itself the. Various aspects of that so maybe Dominic you could introduce yourself to the audience. Thank. You Damon thank you for the invite also I'm to the web talk and yes. They means that I'm an associate, professor I'm, at the School of Business Economics, and, also. Scientific, director of the surface science factory, part, of whom you and. My. Interest ISM in, I look, into innovation. Of course and but, I'm looking into how, and when, is it good to involve customers, because, they know actually what they maybe want to buy in the future but sometimes they don't know so, I'm also looking into this, aspect, when, is it good to involve the customer and we're not and very, often also related, to technology we, look into different technologies. And see and when. People are using for instance augmented, reality, robotics. And personal, assistance and so forth so. The, web talk of of today Thank You Dominic it's. Called the future, eyes your business what is the value of service innovation for your organization, so we'll discuss what, a service, innovation why, it is relevant for your organization, and how your organization, can take advantage, of the various aspects of service innovation. Today's. Topic yeah what is the value of service innovation I think, a lot of people at home of. Course heard about innovation. Work. Already with it also. Technology innovation. User centered innovation, business innovation, the, all kinds of innovations. And today we're going to talk about service. Innovation well. What, a service innovation don't, like which may be elaborate a little bit on that and. Yeah. I'm happy. To do so as I'm I think you mentioned. Already quite some of them, concept so in the end of the day it's a service and innovation so, I think the idea. Of. Services. The. The perspective, that we have on services, has tremendously, changed traditionally. We looked at there, was a distinction between something's tangible. There's. A product something is intangible which, is a service. Nowadays. We see that is much more intertwined, and say as a matter of fact the service is actually the service that we provide something. Or you can equate, service, with what, is the value, that a certain element has, a certain, offer a certain product, a certain something for. Somebody, so that is a new perspective on services, so it's about value, that is created and it can be more hedonic can be non-functional, can be more social it depends what the people see in it the second element is the innovation perspective, so, what we see is the only thing as, a matter of fact right now also, to keep up. Actually. To survive. With our organization. And then improve, permanently. And stay. Ahead of competition how, do we do that we need to permanently. Innovate, so, creating. Something new something new that the people really value that, is service, innovation, I think. What we see a lot here especially in at times when a lot of changes, also technological.
Changes, We. See okay there's a new technology out there let's. Do something with it, IOT. Artificial. Intelligence, and you, name it that we have very often so it's more of a technology driven innovation that. Is some different. To our way how we see innovation is we, see technology, only means to an end the question, is does it provide value, or not, and, and. That is them something that yeah, it's a difference in more technology, driven innovation, versus, a service, centric, value, driven innovation okay. So, the, approach is that we and. A lot of organizations already, are. Using, and nowadays it's. Done a matter of getting. Rid, of that and, then replacing, it with new methodologies from service, innovation, or can, we reuse. Methodology. Or is it complementary, to it to that can, you maybe elaborate. Also a little bit on there Asami yeah, I believe, they're complementary. And whatever. Innovation. You want to create it. Is a very M and that is a company, specific, organization. Specific, orchestration. Of different elements that you bring, together maybe, there are certain technology. Elements that, that. Come certain, trends that I have to consider it depends, if I want to have a cry, mental that means an innovation, which is relevant, for the next two three years or, if I look for a radical innovation, that is in the next 5, 10, maybe, 15, years relevant, for my organization, so it is an orchestration, of them the value centric perspective maybe, the technology, centric maybe this other perspective what, we see a lot right now it's also. One. Of the big passwords, as agile. Organizations. And, we see Lean Startup and. And. What you see if you look into if. You look beyond, those let's. Say words, that. You see that there's a lot of elements of. That. You're actually nice you can combine with, a user centric, design, centric. Perspective and. Design principles, maybe, the innovation, is more of a design process, and. Then the implementation, uses, and principles. Of agile. And. Lean. Start. So. You you. Mentioned value, also. What, is very important, is to value for for customers, I could, imagine that the, managers, at. Home or, at work I would. Presume they, they. Would also be very interesting well what is the business value of service, innovation yeah so so why should we invest, in, service, innovation from organizational. Or business, perspective, so, which. Maybe mention some of the reasons why why. I. Want to say she should really invest, in that from. Business perspective from business perspective, feminine it is SEM, what. We see is that that products, can be relatively. Quickly. Imitated, and so, we see that I'm so and we need to shift to something that actually leaves us with a longer competitive. Advantage, and then valid. That the value, element in the service innovation allows. Us to think about yeah what do the people really I want and then also address. That and telling a little bit of a different, story than, my competitor, because what we see there we have a lot of let's. Say the the needs of our users customers citizens. Are. Very often already to, certain an extent satisfied, but, the question is how can I tell a little bit of a different story that, I'm actually, the. Chosen, company because, I have so many options as a customer. To choose from and that. Can help us because you really think about what. Is really important, for, the outside world what is important, for the people who actually decide, on. One, or the, other. So. Service. Innovation. Yeah. A lot of organization, can take advantage, of that maybe, you can give some examples of organization, that already went. On that journey already made, use of. Service. Innovation principles, mindsets. And really implemented, in their organizations, and were successful. So could. You maybe mention some of those organizations. That really are on the frontier. For, instance in the healthcare industry I think the, Mayo Clinic, for instance is a very good example. If. You think about the high tech industry think.
About The entire transformation. Of IBM, moving. From selling, servers, selling laptops selling really tangible. Elements towards. A purely, services. Oriented. Company. Think, about. Think. About Volkswagen. And if. You think about folks wagon we often what do they do they. Probably yeah, we would think they sell cars as, a matter of fact them if you look at to the strategy. What, is the strategy of the future we, don't want to necessarily be a a car producer, no we, are actually and that's what they stayed in 2025. We, want to be a sustainable. Mobility. Provider. The. Word car is not even mentioned so because, they focus on the value is actually the mobility, that I extract, form, a car and but. If you think about like this then you also see maybe there are other ways to provide that mobility and that offers, also other elements, for yeah. New. Are these changing. Business, model if you focus on mobility, in a broader sense all, right so we see them the more harder, technology driven organizations, come, a little bit more softer. More, more user, centric, on the other side we see then also if I understood correctly from, from donek and. The. Healthcare sector which is very soft very patient, orientated, moving, more into also having this business perspective what is the value for our organization, with regard to this innovation what kind of technology, can we make use of so. That's that's. Quite that's, quite interesting yeah. All. Right so we're. Talking about a, lot of big, companies here. Multinationals. Are active, around, the whole globe but. I could imagine like they are also a lot of SMEs. Or some so middle to to small-sized, companies that. Say, wow I also innovate I also want to innovate. So. Innovation, it sounds, interesting, but this is also really relevant. For me. Could. You elaborate on that and. Yeah. I indeed. I mean the, large corporations. And we see there a lot of examples. And but. There's am the same mechanism, that you have there it also applies. To smaller, companies. And and it, is relatively. It's. Relatively, simple actually to investigate, that yourself I mean think, about a small place that. Sells. Maybe. Coffee mm-hmm. And then, you have a queue I mean people standing in a queue and everybody is doing the same everybody's, buying a coffee but. If you would ask everybody, of, your, customers, why, do you come here then. You would actually realize. That, everybody. Maybe has a different, reasoning, some really just want to come forward because it's a wonderful coffee some. Addresses you come because yet it's just I mean on my way something. Is I do that for social reason something. Some, people say maybe. Something, completely different and, if you understand, and why the people, who all seemingly. Do the same in. My small. Place. Mm-hmm, if. They make actually a very different motivations, then it allows me also to offer something differently imagine somebody comes made me more for social, then it's really important, to provide also the social atmosphere where people can talk feel, almost like at home that's very different to the person who comes here also buys a coffee but, comes here for it's about convenience. It's about cricket, and then, I really maybe have a service. Which, provides them where I can pre-order. My. Coffee and I just can't take it can grab it I don't want to stand in the queue okay. So, everybody, so the mechanism. Is for large, and small organizations I'm, actually, very sim similar, mm-hm but of course implementation. Differs, tremendously. Because. Large, corporation, have, more. Resources obviously. At. The same time they have also a very different inertia so, as a small company I can immediately and, say okay I realized, this I try, out that does, it work or not it. Works and doesn't I decide. Afterwards do I keep that service or do I have to refine it so I'm much more agile in this. Entire process of service, innovation okay. So, you already, give this example of more b2c. Example. Right yeah I could. Imagine there are also a lot of companies there of course are active in the b2b sector. Customer. Research or marquess which is very different, than the regular or. B2c, orientated. Organizations. Do. You maybe have also a very nice example from, the from the b2b setting. That that, also shows, like how service innovation can help. In. The, surrounding, and. A. Number. Of examples think about. Think.
About The example, of, healty. I mean Hilty is a company, that actually sells, it's. One. Of the top companies that sell some equipment, that you would use to. At. Home as a and. Customer, but more important, even as a b2b, on a construction site in order to drill, a hole something, and so, it's about equipment, that, you use for building. Something and what, they have been traditionally doing is they have been selling those, drills, to. A company, and they. Would then use it but. Then they started to think about what would the people actually, or what to the companies that build those buildings. Actually do they really want they. Never wanted to own, a. Drill. Or something or there's equipment they, actually looked for a solution, for their specific problem so, they can change the entire business, model and rather than selling, now those different, tools, they. Actually provide. The tools they, rent those tools so, you can as a on a construction site, for a particular, time for a day for hours, you can rent a particular. Tool that is the one that you right now and use and. Neat, you. Can rent that and then afterwards, they will pick it up and take. It back so you do not own the right thing at the the tool but you actually only rent it for, a certain period of time so, the changes of called anti revenue model because, I'm not I mean focusing. On selling. No as I am I'm focusing, on renting. Out things and also developing, and nurturing this, relationship. More with those construction, companies because, they not only build one house they build actually multiple, houses buildings. And so forth so, it's, not only changing, the focus on the valued also this changes to focus on how, do, I create my revenue, I, really. Love also the. The. Quota solve healthier, the, right to what the right time that is basically the value proposition, that they that they offer you don't need to store all these tools you don't need to maintain all, these tools that is something basic like that add. A filter here takes into consideration. Or. Really takes ownership of. What. Is also often, I think an interesting, misconception. About services. It's, it's something that is an addition, to, a, new. Suit also from your story services. Are not an addition, to it should be your main priority, as, organization. What. Is your perspective on that so so. So that you really yeah, it's. Not the after-sales, it's not only, reparations. For, instance but it's it's, it's it's really shifting, the whole. Mindset. I think, with the example. And. No it's absolutely, and if you see a services, as, creation, then the question is rather. Than and you mentioned, the example of letting after, sales service or something that is happening afterwards. No it's actually very different it puts, the. Value I mean that I create for, a. Customer. For my clients, in the very beginning because it always starts, with the, customer perspective and. Yes. If you look at the strategy, of companies, everybody, wants to be customer, centric and, market centric but what you see is that, we. Very often are also in our organizations. Very. Often our more spending. Time on internal, process, and rather to think why, do we do that this is really what the customer, really wanted. In an initial place and and. Do, we deliver that also so the entire, service, innovation, perspective puts, the customer first, mm-hmm. So. There's also has to do a lot with with, the mindset wise as you already mentioned susan vision it's a it's, a mindset we talk about methodologies. And processes basically. To to, facilitate, the service. Innovation, process. Tools. Right. A lot of tools. So. How. Is this different than traditional. Market. Research, uses something you already makes it like okay so I, can use we. Can send out questionnaires, and I understand from that perspective what, what, the customer, wants, how.
Does It service, innovation and basically differ from that it's, a different, or is it, yeah. Yeah. It's different I mean maybe. I asked back I mean how often do you fill out a survey and, if. You receive it what, do you think are the response rates I mean to surveys and it. Really depends, on industry but I mean typically we have response, rate between maybe five if you had a big incentive and. Then you have maybe 20% or something that means seven. Ninety five or 80% of the people have actually not filled out the survey what, some people only filled it out because they wanted to get the new let's. Say iPad, or something yeah, so then you also question, is this actually the answer, that, we want to have, and. This is the entire picture that, we get from, our customers so what am we. For, service innovation we use some design. Centric, or design methods, also and, so. Where the purpose, is. Central. And the. Method follows that purpose and then we use an entire combination, of qualitative. And quantitative, research so it is not only one, time it's better to make. A survey, one time it's better to have an in-depth, interview sometimes. It better to observe, people sometimes. It's better to do experiments sometimes, it's of course better to do big. Data and look into correlations. And so forth so, it is at the combination that, is gives us a real understanding of. What the customer, actually really, wants and not, only what maybe, he or she says but, what, are the underlying motives, what drives him, or her so, really basically having empathy, which our customers yes, having, empathy, a full understanding getting in the shoes of your customer, I think that is a very important, element and. Why. It's, not only I mean of course to understand it is really something that sticks, very much in, the. Let's, say if you have an employee mm-hmm, who takes the role of a customer, by buying, something, almost like a mystery, shopping then. You will see that he. Or she she will see certain things that you do not realize. If you just stay in your company, setting if you take on only the perspective, of the. Company typically. You realize that your customers. Are much more looking also for emotional. Elements. Or emotional. Benefits, rather. Than only the functional, benefits, that we try from a firm perspective, I mean toward to optimize, okay. So. FUBU. Is within, the organization's. So. As I understood we yeah, we because we creating more, yeah. I'm panicked more outside. Focused, organizations. But. Organizations are big and. There are a lot of employees, on. The work floor management. Executive. Level. What. What is needed for them how, should they be involved, with the opening involved, in the and, if, so in the same in this anyway so, could you maybe elaborate a little bit on. Yeah. Because we have maybe a employees. Sitting at home or executive. Manager Mac, fool. Who is this then. Relevant. And. Maybe. That's also my perspective. But it is relevant them of course for for all the different levels and I. Think, the question, is also not only for who is it I mean because of course you have a strategic perspective, on, what, is the. Business model of my of the future and then, you have a middle management perspective also of. Where. I am, maybe. Provide. The culture, within my teams in, order to create. Innovation, and the employees of course they are also heavily involved in the innovation, process so you do see all levels involved the question would be then and that is a question that we try and that we answer, in. In. Interviews. And in term in. Discussions. With companies, is where, do we start is that, something if the if the organization. Already, sees the urgency, they see the storming whether they see the competition going, ahead they see changes. In the industry, which. Are maybe tremendous. And. Have the sense of urgency already, embedded, then. It's much easier and, let's, say to also. Make a strategic, change sometimes. Is that you have to prove also, and how, well that works and then, you would probably start with a limited, immunity maybe. With one team with, a middle manager and. His. Or her team in order, to create that and provide, a best practice, case and, so, it really depends in what organy, what. Organization, are you are and, what is the environment in which the organization is, and also, internally, how, do. They what's the current mindset what are the current process of what are the current tools that, they also use. Yeah okay. So you can, approach my phone from from top a, top-down.
Bottom-up You. Can start in the center and really depends, on on, how the context. Of, a specific organization. Is. Basically, alright. And it's also, tailor, made it should also be. A little bit also, given. The suit also a little bit fit to add, organization. Itself. To. The perspective of the customer right so. How. Can we really get that experience within, our organization. So really that, we can have that that perception, in, yeah. And then, the. Question is in detail how should i what. Is the question that I should ask and and then, the customer, and. Is. There one question, that I should ask the customer in order to understand. I. Think. They are there are five. Questions okay. There's. Always the same one I mean and there's a beauty of it and no. I think it's let me let me come back to this coffee example, and. Asking. Somebody who, is queueing at the coffee and, let's. Say counter, in order to get a coffee yeah, why, are you buying, a coffee here and, somebody. Might say I. Buy. It because I want. To wake up mmm. Before class student. And then, I asked why do you want to wake up and. Then he says yeah because I want to perform very, well in class so that then. I ask again why is it important, for you to, perform. Very well in class is them, because, I think, he. Or she might answer it's, important for my career then. I ask why is it that you're important. Why, is your career important, to you and. Then. He says yes because this. Is important, for my future. And, then. I ask maybe one time more and then, I understand, as. An, organization. That this person, comes, to buy. This coffee in order, to actually boost. His, or her career if. I have that as an understanding, then I can also Azzam as. A place that sells a coffee of a very different services, maybe this person would be interested in certain Korea advanced maybe, it would be nice for his personal only wait and in a cupid also see maybe, there's a business opportunity also, in that q was who I could Prince's. Interact. In exchange. So, that could be something so rather than saying what's a one, magic question I would say ask five, times and the. Why question, and probe deeper, and deeper and deeper then, you get the underlying reasons why people really do something which, offers your opportunities, for creating value, beyond. This. Particular. Purchase. Of that coffee. So. That, question also a trigger question, with. Me is is. There such a big, difference. Between. How. The. Organization. Perceives. How. A certain. Service that they deliver and how the customer, perceives is, it how, we talked about having a customer understanding. Empathy. Is. That gap that big. I. Think. It's very, big we are sometimes, maybe if you work an organization. Not fully aware, of it them there, is an we are am running. Also together with them. Dutch. Association. For service management we run a yearly, AM surveys, am also on understanding. What the service, organization. Want. But. Let me refer to a different, statistic, and, that we also can. Confirm, is it's, a company it's Bain & Company it's consulting, company and what. They they did actually a very nice study, across, different industries they, asked him the, CEOs the top management, do. You think that, your company is delivering, excellent. Or, I think they called superior, customer, service and. 80% of, those, CEO. SEO, says yes we do that.
Fortunately. Or unfortunately for. Them fortunately, for us they, are also asked from the same, companies. And the customers, do you think do you agree that this company delivers, excellent. Service. Experience, and only, 8% of, the customers, agreed so, somehow that something, is happening which is 72. Percent in there between and so. There's a big gap between the external. And the internal perception. Of the, company which offers of course opportunities. Also true proof. But. First of all we have to be as an organization. As individuals, aware, that this gap exists, in order to then, also make. That gap smaller so. How. Can we get our higher. Management a little bit more emphatic. So so you say well we have, this big big gap so. How can we maybe bring in a very practical, practical. Way. In. A very practical way and let. Them be a customer. Themself. Or. Interact, with, their customers and, there's. Nothing as strong, as their own experience, that you have and and what, we see is yes you have a lot of as a top management you have all the different reports from, organa from consulting. Companies. On this, is I mean the satisfaction. I mean that we have and there's not our. Competitor, that, is not as impactful, as doing the. Customer, work and the customer tasks yourself, so, um well, for instance I mean in one project, that we did am what we actually, it was about a term and the, customer, of the future and. It. Was very important, for the company that um hiatus, organization. Had hired us to say hey please do not provide us with another M report. Just leave. Her some footprint, of looking. Through the eyes of, the outside world, the eyes of the customers, so, what we created, ISM through, different methods a combination, of different methods qualitative, and quantitative, we, created. Prototypes. Of the customer. Of the future mm-hmm, and. Then, during, their top management, meeting what, and they typically come together and, the. Top. 40. People come, together and exchange them in their business results and at, some point what, we did is we opened, this meeting, room and, let them two people come in and, the two people started then to interact also with this top management, and discussed. It first, everybody thought this is something strange, that is happening there and, maybe they, get into the wrong room at some point they realized that. These, were actors, actors. That we briefed on being those four, customers. Of the future and in. Order to interact. With, the. Top management and that. Was very insightful for them I mean because they could, interact with not the customers that they have now also but also the customers, that they will have in the future and I'm. Very, sure from all the project, I mean that is definitely something that will always stick in in their mind because that is something that they will think about yes. Our. Customer, of the future, this, is how he or, she looks. Like this, is how she behaves, and that, helps and also after the awareness to provide the ground for innovating. And the change. Okay. So in the example that you gave. Basically. The main change was not to talk about one customer, one, patient, one company that you serve or provide value to but, also create, this separation. Segmentation. Basically of customers, not. Based on, only. Demographics. Or but, also making sure like giving, this, patient, this customer, a certain, face which, you can really empathize. With which you can really recognize and, from there better strategize. A good and and. If you talk it yeah I think the the, focus on the strategy, is really important, because and. Maybe. Now a database, if you look into all. Kind of maybe, surveys. Etc we will not probably find the customer, that we might want to have any future yeah, so. Making, our company, future proof it means also we have to look in the future yeah, so it will not be enough to analyze and say, okay these are a cluster of our existing, customers.
Let's. Understand, them know we have to look. Forward and say yes, this is how I our industry, is changing this is maybe how our regulation, is changing, this how our competitors, is changing are changing, and, that. Means our future. Customer, is maybe more empowered, as more active, is more informed. Let's. Build, him, over. Up as a persona, yeah, and, that. Is the target that we also I mean of course have for the future and you will not find that a new existing, let's say CRM system and in there because yes, Percy. It is about the future yeah so, persona is a very practical answer design, to which you can really apply which. You can help them for more, operation level but also have you know discussed on a strategic strategic. Level, so, I could, imagine it's a lot of information that we share today please. Have a look at the fact sheet downloaded and maybe. Some new interesting, questions. Or. Topics. Pop. Up feel. Free to contact us via, email, phone, we are there to assist and as see if we can make. Things more clear, like. I said before our next, web talk will be on the 28th. Of May, that's on on Monday twelve o'clock and I will talk more about the. Nitty-gritty basically. Of service design really. Moving. Into the tools and methodologies. That, you can can, use and well. Dominic I think we. Hope to see you then and next time I would like to thank you all for Dominic. For this cell for, the nice elaboration. On service, innovation and what value it can bring to your organization.