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
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:
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.
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
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).
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