Post on 16-Dec-2015
Prepared by Management Department | www.unimedia.ac.id | man@unimedia.ac.id
New Service InnovationNew Service Innovation
Within the EU services now account for 60% of GDP (Eurostat, 2006).
Growth in knowledge intensive business services (KIBS)
Growth in services – but what does this mean?
huge growth in coffee bars, smoothie bars and hair salons?
Since 2003, shares in oil companies have doubled.
Halliburton and Schlumberger, the world market leader for oil services, have more than tripled.
Outsourcing and service growth
Expected gains that companies can derive from outsourcing include:
• the reduction of operational costs;• the ability to transform fixed costs into variable costs;• the ability to focus on core competencies;• access to the industry-leading external competencies and expertise.
Business-to- business services (traditional)
Business-to- business services (KIBS)
Consumer services
Internal firm services
Public services
Not-for-profit services
Description Services provided for businesses
Specialist services provided to businesses
Services provided to individuals
Services provided by internal functions
Services provided by local and national government
Services provided by charities
Examples AccountancyLegal adviceTraining
Management consultancyIT consultancy
ShopsHotelsBankingHealth and beauty
FinancePersonnelIT
HealthEducationLeisurePrisons
HospicesCounsellingAid agencies
Customers Frequently purchased by professionals, who may not be end users
Frequently purchased by professionals, who may not be end users
Purchased by consumer of the service
Consumers of the service have no choice of provider
Funded through taxation and little choice for consumer
Funded through charities maybe government grants consumers chosen or choose.
Challenges Providing high-quality tailored and personal service
Providing high quality services to businesses who have high purchasing power
Providing a consistent service to a wide variety of customers
Delivering customised, personal service. And demonstrating value for money.
Delivering acceptable public services against a backcloth of political pressures.
Balancing needs of volunteers, donors and overwhelming needs of customers.
Typology of services
Technology and new service development
Technology has become the most significant enabler of innovation in services.
Transforming the roles of both employees and customers.
Easing the connectivity between service developers andcustomers.
E.g. ebay . . .
Company Industry sector New service/new business model
eBay On-line auction A new way of buying and selling through a community of individual users
Ryanair Airline A new way of consuming air-travel with no frills service and emphasis on economy
Amazon Retailer New way to buy goods – on-line retailer
Napster; iTunes
Music retailer New way to buy and download music
Google Internet search engine
A fast way to search for information on the internet
Partygaming On-line gambling Gambling and gaming from the comfort of your own home
Myspace Social networking A community of users on-line who can chat and share music, images, news from their own home
You-Tube On-line video and film archive
A community of users sharing home made video clips plus recorded favourite clips from movies
A range of new services that also create new business models, where technology plays a key role
Services areprocesses
Services areco-producedby the customer
Services areintangible
Services areperishableServices cannot
be transported
Services areproduced andconsumedsimultaneously
Services areheterogeneous
Characteristics of Services
New service innovation
As with products service, innovations can be classifiedin many ways: • eBay was new to the market; Google’s on-line auction
is new to Google;• Internal process innovations, e.g. Amazon: delivering books to consumer is
not new, but using internet;• Line extensions to services, e.g. banks offering insurance;• Service modifications, e.g internet access to airline passengers.
The service innovation process
Different from NPD: customer is part of the process
• Blueprinting the service Identify every activity and every possible outcome in the process
• Intensive market researchDirect contact facilitates dialogue
• Service prototypesDifficult because customer is part of processLevel of integration determines ability to prototype
Perceived service quality . . .Perceived service value . . .Customer expectations . . .
How do customers evaluate services?
• Reliability• Responsiveness• Assurance• Empathy• Tangibles
• Reliability– Providing service as promised– Dependability in handling customers’ problems– Performing services right first time– Performing services at the promised time– Maintaining error free records
• Responsiveness– Keeping customer informed when service will be performed– Prompt service to customers– Willingness to help customers– Readiness to respond to customers’ requests
• Assurance– Employees who instil confidence in customers– Making customers feel safe in their transactions– Employees who are consistently courteous– Employees who have knowledge to answer questions
• Empathy– Giving customers individual attention– Employees who deal with customers in a caring manner– Having the customers best interests at heart– Employees who understand the needs of their customers– Convenient business hours
• Tangibles– Modern equipment– Visually appealing facilities– Employees who have neat, professional appearance– Visually appealing materials associated with service
Final Project
Buatlah sebuah ide inovasi di industri tertentu. Berikan alasan mengapa Anda tertarik memasuki industri
tersebut. (gunakan analisis five forces porter) Buatlah nama perusahaan Anda, dan jelaskan visi dan
misinya. Jelaskan business model perusahaan Anda (jelaskan inovasi
yang dilakukan). Uraikan strategi marketing : target customer, customer
value, 4P Uraikan strategi operasional : proses produksi, apakah
inovasi akan dilakukan secara internal / akuisisi Uraikan strategi HRM : kebutuhan karyawan, pembagian
departemen Paper dikumpulkan tanggal 15 Desember 2010
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