Opportunity Generation – New Products & Services

Kamalini Ramdas Deloitte Chair in Innovation & Entrepreneurship Professor of Management Science & Operations

London Business School

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“I used to draw like Raphael. It has taken me a lifetime to learn to draw like a child.”

- Pablo Picasso

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Let’s first look at three more widely held beliefs about innovation and how they are being challenged

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Does higher quality or wider access imply higher cost in your current

service model?

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Innovation in Services

Copyright Ramdas, Teisberg & Tucker 2012

ValueValue

One-on-One

One-on-Many

Many-on-One

Many-on-Many

Virtual

ValueValue

One-on-One

One-on-Many

Many-on-One

Many-on-Many

Virtual

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INTERACTION

NE

ED

FO

R

CO

MM

UN

ICA

TIO

N A

MO

NG

P

RO

VID

ER

S

VALUE TO CLIENTS OF SHARED EXPERIENCE OR INFORMATION

Many providers to one clients at a time

Many providers to many clients at once.

One provider to one client at a time.

One provider to many clients at once.

LOW HIGH

LOW

H

IGH

Copyright Ramdas, Teisberg & Tucker 2012, Harvard Business Review, December 2012

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BOUNDARY

CLI

EN

TS

’ US

E O

F P

RE

DIC

ATA

BLE

CLU

ST

ER

S

OF

CO

MP

LEM

EN

TAR

Y

SE

RV

ICE

S

DIFFICULTY ACCESSING OR USING SHARED COMPLEMENTARY SERVICES

Coordinate complementary services for clients.

Integrate complementary services.

Complementary services do not limit clients’ success in predictable patterns.

Help clients identify the best providers of complementary services.

LOW HIGH

LOW

H

IGH

Copyright Ramdas, Teisberg & Tucker 2012, Harvard Business Review, December 2012

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Reuters Market Light Information Service

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You need to rethink the delivery of your service if:

• There’s too much paperwork • Everyone hates IT • Informal communication is purely social • Employees and customers use dark humor

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Innovation in Services

Copyright Ramdas, Teisberg & Tucker 2012

ValueValue

One-on-One

One-on-Many

Many-on-One

Many-on-Many

Virtual

ValueValue

One-on-One

One-on-Many

Many-on-One

Many-on-Many

Virtual

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Combining multiple dimensions can result in innovations that improve quality AND

reduce costs

Move from the tyranny of OR to the opportunity of AND

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Still need to go from free form brainstorming to a single service concept

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The journey to a final service concept

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“Design products for people you love, never for people you don’t know”

Herman Miller design philosophy