One (beneficial) consequence of viewing everything as a service is we remove the artificial goods vs service blocker. Now goods become transport mechanisms of service.
This also means the marketing standard of goods-service continuum is no longer relevant
In its place, we introduce the service-service continuum. With self service on the left, and full service on the right
We can now think of all solutions to help beneficiaries make progress in their jobs-to-be-done, from a service perspective.
Thirsty? Well, you could self-service by grabbing a bottle of water from the fridge. Or full service by visiting a bar. Or partial service by running the tap.
Back in 2000, Pim den Hertog published a service innovation model that we can use to search for and explain service innovations (den Hertog (2000)). It uses three aspects of a service innovation:
- Dimensions - new concept, new client interface, new delivery system (process, culture, organisation) and technology options
- Capabilities - HR, Organisational and Marketing & Distribution
- Comparisons - to existing & competing services; to service workers; and actual & potential customer
In a later 2010 update he introduced 2 more dimensions - new revenue model and new business partners. As well as renaming technology options to new delivery system (technology).
How can we increase the potential innovativeness of our organisation?
It turns out 3 orientations impact the potential innovativeness of our organisation. And in turn the business performance. Increasing these orientations impacts innovation performance. They are:
- Market orientation - gaining and using intelligence on customers
- Learning orientation - creating and using knowledge
- Entrepreneurial orientation - how entrepreneurial the organisation is (attitudes and behaviours to innovation, pro-activeness and risk-taking).
- Guides an idea creator on what aspects of an idea to explore
- Allows crowd collaborators insights into how to build on the idea
- Is flexible in depth and breadth of use to avoid intimidation
- Provides idea selectors with ideas in a standard format
- Bridges the gap to defining ideas in a more buddies ready/understandable way
Does the classic marketing mix- product, price, place and promotion - fit for today's world? A world where
- the consumer is better informed
- our economies are service dominated,
- technology is replacing people, and
- we are concerned with sustainability and circular economy
It's time to revisit and update den Hertog's 2000 service innovation model. Reflecting both how the world looks now, 20 years later, as well as folding in modern theories such as servie-dominant logic, job to be done, blue ocean, as well as addressing innovation resistance
I propose the following updates
- Uplifting technology dimension and technological capabilties
- Adding a Data dimension and data exploitation capabilties
- Adding an Ecosystem dimension and partnering capabilties
- Exploring where job to be done, hindrance maps, and blue ocean strategy help
- Exploring where addressing innovation resistance best sits
The services marketing triangle captures the marketing relationships between three actors: company, employees and customer
These relationships revolve around the promise. External marketing is the company making the promise; interactive marketing is the employees delivering the promise; and internal marketing is the company enabling the employees to deliver the promise
I make a small update to reflect that customers nowadays deal with more than just employees. In a service-dominant logic view the following deliver the promise:
- employees, including gig economy workers
- systems of the service provider - the electronic employee, so to say
- physical resources/goods of the service provider - the hire car or goods used for self-service