Chesbrough, H. (2020)
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Chesbrough, H. (2006)
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<1 min
Chesbrough, H.
Also see his TedEx talk.
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<1 min
In part 1 of this 2 part article we saw that goods-dominant logic is like driving a performance car but only using 1st gear
Here we look at how to access the other gears by evolving our view of the world from a goods-centric view that has total focus on exchanging value at a one-off sales point. To a service centric view
Such a service-dominant logic, as it is called, helps really explain how the world works...
...and accelerates our innovation thinking
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<7 mins
The Big Picture… Back in 2000, Pim den Hertog introduced a 4-dimensional services innovation model. Ten years later he introduced an updated 6-dimension model in “Capabilities For Managing Service Innovation: Towards A Conceptual Framework“. [Image of model] Where the updates are: delivery systems dimension is divided into two: new delivery systems (technology) and new delivery […]
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<1 min
[very early draft] Customer resistance Customer resistance is the parallel to adoption. We see innovation as good and just need to diffuse it. Resistance, on the other hand, reflects customers hesitance to use an innovation. Ram and Sheth (1989) identify five barriers involved with resistance. Three of those are functional barriers: usage, value, risk; and […]
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<5 mins
dimensions
capabilities
'execution complexity'
simplifications
justifications
'portfolio management'
'enabling innovations'
How difficult will it be to implement your innovation in your enterprise?
We look at how we can determine that through via den Hertog's model of service (which holds for products too). And take advantage that models of this type have two components:
- dimensions
- capabilities
By determining the size of change in dimensions and the strength of an enterprise's capabilties, we can score an innovation's Implementation Execution Complexity
In doing so, we open the path to reducing that score - perhaps simplifying the change, or improving capabilities. And to portfolio management.
Reading time
<7 mins
How do we find/discover new service innovations?
If we have just a product, then we can look to service-ise that
If we currently have a service, we can use our extended version of den Hertog's model to seek innovations. These could improve the service concept, the service delivery (internal, new partners, new systems etc) or the client interface. They could be based on technology and/or data
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<1 min
'new client interface'
'new service concept'
'new delivery system'
technology
capabilities
'service marketing triangle'
innovation
comparisons
'new business partner'
'new revenue model'
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).
Reading time
<11 mins
action
activities
ambition
change
needle moving
ienterprise
innovation = change
execution
ideas
organisation structure
performance
innovation problems
resistance
complexity
vision
Innovation = change.
And if your enterprise can't handle, or resists, those changes, then your innovation activities are simply innovation theater (activities that deliver few/no tangible results)
Worse, the outcome of those activities are likely increasing that resistance to change
Calls to action, hackathons, open innovation, innovation spaces/rooms, appointing chief innovation officers, claiming to be an accelerator, building silicon valley outposts - all these, and more, are at risk of being innovation theatre
Here's why....
Reading time
<10 mins