Service Design

Chesbrough on Open Services Innovation 0

Henry Chesbrough is a Professor at ESADE and father of the term ‘open innovation’, one of the concepts behind the creation of ESADE Creapolis. He is currently Adjunct Professor and Executive Director of the Center for Open Innovation at the Haas School of Business at the University of California, Berkeley.His research topics include: innovation in organizations; the structuring and management of research and its development; management of intellectual property; technology based on benefits of venture capital companies; the comparative evolution of high-tech industries in the United States, Japan and Western Europe.

Chesbrough is one of my favorite authors. I hang on most of his statements. The attached video covers these points.   

Open Services Innovation

  • Open Services Innovation
  • Rethinking your business as a service company
  • Co-create with customers
  • The value of openness
  • New business platforms and business models

About TEDx, x = independently organized event: In the spirit of ideas worth spreading, TEDx is a program of local, self-organized events that bring people together to share a TED-like experience.

Discussing Outcomes versus Features and Benefits 0

Robin Lawton book, Creating a Customer-Centered Culture: Leadership in Quality, Innovation, and Speed offers some valuable insights even though it was written 20-years ago. In a past podcast, I asked Robin about discussing outcomes versus features and benefits.

Related Podcast and Transcription: How Do You Listen to Your Customer?

An excerpt from the podcast:

Rob Lawton:  You got it. As soon as we do that, what happens is that it opens the door to innovation. We can go two directions. We can say, “Ah. If we know the outcome is X, and users or customers want it, and this is the product we’ve been giving them to get there. Are there things we should do to improve that product?’ If so, we’re going to use what I call convergent thinking. That is; we’re going to take an existing product, and we’re going to make some kind of either incremental or radical change in that product. But, we don’t significantly change the product as a concept in itself. We still have that particular product. We may have a buggy whip, for example, that doesn’t have a flexible end on it. It’s actually got a battery in it, and it buzzes. You hold it against the horse, and it buzzes, and that causes the job to occur. We’ve still got a buggy whip, but we’ve made incremental improvement in it.

On the other hand, we could use divergent thinking. Divergent thinking is focused on outcome. We could say, ‘Shoot. The buggy whip is a product, but what other products might achieve the same or better outcome for the customers?’ That’s what we want to do. If we think about innovations that we know of, I’ll give you one that’s a great example of how focus on outcomes can actually explain the success of certain companies. All of us are familiar with the iPhone from Apple. The iPhone started with the iPod. The name of the product itself is very important because there was no history on that name, iPod. The beauty of it is that it did not cause us to think of a specific thing when it was introduced. That meant we didn’t have intellectual, emotional, or experiential history regarding this brand or product. It’s not that the product didn’t exist in some form prior, because the iPod is simply a mp3 player. If we think about the iPod, then as a product, and we want to connect to outcome, we say, ‘Can we identify what the customer’s desired outcome was, regarding the iPod?’ In a second here, I’m going to tell you what it is.

Before we do that, let’s talk about the predecessor for mp3 players. We know that iPod springs from that. It’s a kind of mp3 player. Prior to the mp3 player, we had a company called Sony that had a product called Walkmans. The Walkman actually addressed the same desired outcome as the iPod. Prior to the Walkman, there was the boombox. All of these are products that have exactly the same outcome wanted by customers. That is, “feeling like I’m there.” That outcome, feeling like I’m there, like all outcomes at the strategic and macro level does not change. They are stable over time. If we think of all the things, customers care about; this is the only one that doesn’t change over time. In our world, when we have change everywhere, we desperately would like to find something that doesn’t change. This is it. Desired outcomes don’t change over time.

What the iPod did was enabled the experience of being there to be far more inclusive, because of what else the iPod brought to the party, which is iTunes. There’s a whole other set of things we could talk about. That’s how we connect products and outcomes. We can ask ourselves, and we should, ‘Is the product today the best product we could provide for the outcomes we have uncovered those end users of this product want to achieve?’ If the answer is no, then we need to pursue that and say, ‘Great. What else could we provide as a product?’ In fact, if we eliminated this product and started from scratch, what would we create?

Lean Sales and Marketing: Learn about using CAP-Do

Lean Engagement Team (More Info)

An Instruction Manual for Innovation 0

David Hamme enjoys helping leaders uncover opportunities, examine problems from new angles, and executing the plan to bring them to fruition. His goal is to make your life easier and supercharge your performance.  His recent book, Customer Focused Process Innovation: Linking Strategic Intent to Everyday Execution is compilation of his thoughts and processes that he uses. Dave-Hamme

Download the MP3

Business901 iTunes Store

Mobile Version

Android APP

Lean Sales and Marketing: Learn about using CAP-Do

Lean Engagement Team (More Info)

A Clinic on Innovation Practices 0

The 300th Business901 Podcast 

The Mayo Clinic Center for Innovation founding and current administrative director,  Barbara Spurrier MHA, is my guest this week on the Business901 podcast.  She has advised senior leaders in the health care industry for over two decades, serving as a champion for innovation in large, complex environments. barbaraspurrier She just recently co-authored an outstanding book on innovation, Think Big, Start Small, Move Fast: A Blueprint for Transformation from the Mayo Clinic Center for Innovation.

Download the MP3

Business901 iTunes Store

Mobile Version

Android APP

Lean Sales and Marketing: Learn about using CAP-Do

Special Marketing with Lean Book and Program offers on Facebook

TryStorming instead of BrainStorming? 0

Bob Petruska of Sustain Lean Consulting brings 24 years of experience helping a variety of customers including Health Care, Aerospace, Automotive, Food, Office and Service industries improve their performance.  He is a consultant, presenter, trainer and author of Gemba Walks for Service Excellence: The Step-by-Step Guide for Identifying Service Delighters.

Bob will be working his magic in his upcoming workshop at the 2014 Jacksonville AME Conference where you can participate and witness a little TryStorming in real time. It is part of the hands-on Pizza Game factory model. Learn the basics of value stream mapping (VSM) and create your own maps with metrics showing the potential benefits. You will gain practical Lean implementation skills in a way that only Bob can present. He is truly a master facilitator.

In this short Video Podcast, I am attempting a little Try-Storming myself. I typically post an audio blog but thought I would mix it up somewhat blindly. Not sure if it will transfer to my iTunes and Android App but thought it was worth a try. Sorry for the experiment if anyone has trouble. But I am not sure I can test it without testing it.

Quality People and Customer Experience 0

John Goodman has managed more than 1,000 separate customer service studies, including the White House sponsored evaluation of complaint handling practices in government and business and studies of word of mouth and the bottom-line impact of consumer education sponsored by Coca-Cola USA. John’s new book, Customer Experience 3.0: High-Profit Strategies in the Age of Techno Service takes John’s Customer Service expertise and puts it into a digital context.

Related Podcast and Transcription: What People Really Buy

Joe: We’ve met through ASQ that I find that it’s interesting because most quality people are very removed somewhat to the Customer Experience except dealing with the problem that gets fed back to them. I think Risk Management. Customer Experience is a huge risk, isn’t it? I mean you got to do it, right?

John Goodman: Oh, absolutely and, in fact, I recently had a consumer package goods company, where I had fed back some of the data and some quotes from customers and the quality guys in the manufacturing plant said, “Oh, we’ve never had this kind of information before.” I made the case to the head of Customer Insights and Customer Service that, basically, the plant people should be allowed to talk to the consumers directly to say, “What were you doing when this happened and how had you stored this product, etc.?” The General Counsel intervened and said, “We don’t ever want to have plant people talking to customers.

That would create too much potential risk.” Well, I’d counter it to your point and say, “What’s the risk of the plant people not understanding how the customer was using the product? If anything, there’s a huge risk there and, in fact, if you look at almost every major class action lawsuit and big government intervention, and there have been a number of, for instance in the auto industry and in the pharma industry recently, almost every one of those is due to the fact that problems weren’t handled very effectively and the problems were not paid attention to. It was literally with your problem handling and quality improvement process were pouring more gasoline on the fire rather than dealing with it effectively.” That actually raises the interesting issue that my company CCMC, every 2 years we do the National Wage Study. That’s a cross-section survey of U.S. population with Arizona State University, where we basically identify what makes consumers so angry they start swearing at a company.

What we find is that in most cases, the customer if they do bring a complaint to the company, they want both an apology, they want some empathy and they want a tangible piece of compensation or remedy. A large number of companies just say, “Well, we don’t need to apologize. We didn’t really do anything wrong so why should we apologize?” By not giving the apology, “I’m sorry to hear that happened. I’d be upset if it happened to you.” even if the customer did contribute a bit to the problem, that doesn’t cost anything but it doubles the potential of making the customer happy and what we have found is that comparing the recent wage study in 2013 to the White House study that we did in the ‘70s. Service and Quality have actually gotten worse over the past 30 years because companies are spending lots more money but they’re doing it in a way that doesn’t make customers happy and they’re doing sort of all the wrong things.

Lean Sales and Marketing: Learn about using CAP-Do

Special Marketing with Lean Book and Program offers on Facebook

What do Customers Buy, Part 2 0

John Goodman’s new book, Customer Experience 3.0: High-Profit Strategies in the Age of Techno Service takes John’s Customer Service expertise and puts it into a digital context.  John has managed more than 1,000 separate customer service studies, including the White House sponsored evaluation of complaint handling practices in government and business and studies of word of mouth and the bottom-line impact of consumer education sponsored by Coca-Cola USA. John Goodman

John has taught service quality and service re-engineering courses at Wharton Business School’s executive education program.  He has appeared on “Good Morning America”, the ABC Evening News, The Discovery Channel, National Public Radio and as a panelist on the PBS show, “The Editors.”John is the Vice Chairman of Customer Care Measurement and Consulting (CCMC).

Last week, I posted the first part of the podcast, What do Customers Buy: Experience or Product? This is Part 2 of 2.

Download the MP3

Business901 iTunes Store

Mobile Version

Android APP

Lean Sales and Marketing: Learn about using CAP-Do

Special Marketing with Lean Book and Program offers on Facebook