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New Service Development and Innovation Workshop. Neil McBride Centre for IT Service Management Research De Montfort University. Agenda Why service innovation? Service Properties. The service development process. Service Strategy Service Scenarios Service Idea Generation

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new service development and innovation workshop

New Service Development and Innovation Workshop

Neil McBride

Centre for IT Service Management Research

De Montfort University

Information Services Management Lecture 3

slide2

Agenda

Why service innovation?

Service Properties.

The service development process.

Service Strategy

Service Scenarios

Service Idea Generation

Service Idea Selection

Service Design

Service Implementation

Conclusion

Information Services Management Lecture 3

slide3

This workshop is about developing ideas for new IT services.

How can we

support the organisation through innovative IT services;

link new IT services to business innovation;

create new services within an ITIL framework?

Information Services Management Lecture 3

slide4

Why create new services?

To gain business advantage using IT innovations.

To move the business forward.

To respond to customer need and demand.

To improve service delivery approaches.

Being proactive in using IT to support the organisation and thinking outside the box.

Information Services Management Lecture 3

slide5

New Services and service development are needed as a result of:

Reorganising a product-based IT department around business service groupings;

Changing information needs within business services;

New IT services needs resulting from new organisational services or products

Changing organisational processes;

New information technology availability.

Information Services Management Lecture 3

slide6

What will we need to design?

Service processes

Provider activities

Customer activities

Resources

Computer

People

Quality definitions and measures

Costing models

…..

Information Services Management Lecture 3

slide7

Management and Staff

Physical/ technical Resources

Service Culture

Organisation and Control

Customer

Information Services Management Lecture 3

slide8

Service Strategy

Principles, Values, Beliefs, Approaches

Service Scenarios

Future environment, economics, change

Service Idea generation

Extension, evolution,

Product to Service

Customer Concepts

Out-of-the-blue

Information Services Management Lecture 3

slide9

Service Idea Selection

Benefits

Customer support

Synergy

Knock-on-effects

Service Design

Concept – requirements and deliverables

System – resources, structures, information

Process – activities, interactions, exchanges

Service Implementation

Policies, Environment, People, Training, Preview, Launch

Information Services Management Lecture 3

slide10

IT Service Strategy

Linking culture, values and norms

Looking at how IT usage aligns with company needs.

Grouping IT services to match business services.

Distinctive positioning,

Set of related choices,

Tailored web of activities.

(Porter 1996)

Information Services Management Lecture 3

slide11

Service Strategy for Service Innovation

Identify key principles and policies of IT services.

What are the goals you’re aiming at?

Design activities to support these principles and goals.

How do these activities differ from what you currently do?

Do these principles and activities suggest new or transformed services?

Information Services Management Lecture 3

slide14

Scenario Planning

Scenario planning is a method for learning about the future by understanding the nature and impact of the most uncertain and important driving forces affecting our future. It is a group process which encourages knowledge exchange and development of mutual deeper understanding of central issues important to the future of your business. The goal is to craft a number of diverging stories by extrapolating uncertain and heavily influencing driving forces. (Borjesson, 2002)

Information Services Management Lecture 3

slide15

Scenario Planning

Scenarios are not about predicting the future, but questioning fixed assumptions.

Crafting diverging stories – a series of possible futures

Ordering perceptions about alternative future environments.

Information Services Management Lecture 3

slide16

Scenario Planning

1. Identify focus issues or decision.

2. Identify primary driving forces:

Social,

Economic,

Political,

Technological.

3. Rank driving forces according to importance and uncertainty.

4. Create matrix of two most important.

5. Flesh-out scenarios.

6. Consider implications.

Information Services Management Lecture 3

slide17

You can tell that you have good scenarios when they are both plausible and surprising; when they have the power to break old stereotypes; and when the makers assume ownership of them and put them to work. Scenario-making is intensely participatory, or it fails."

Peter Schwartz, ‘The Art of the Long View’

Information Services Management Lecture 3

slide18

Service Idea Generation

Internal or external

Formal or information search

Involving the customer

Need to simulate service idea generation on a long-term basis.

Information Services Management Lecture 3

slide19

Service Idea Generation

Extending existing services

Evolving existing services into new or different forms

Turning products into services

Creating product-sharing services

Obtaining customer concepts from the coalface

Out-of-the-blue ideas from the technology, from serendipity.

Information Services Management Lecture 3

slide20

Service idea generation methods

Critical Incident Technique

User groups

Focus groups

Ethnography

Observation

Interviews

Surveys and Questionnaire

Information Services Management Lecture 3

slide21

Use of Metaphors

Other Industries

Hospitals

Airlines

Other Systems

Biological systems

Geography and Geology

Lateral and Creative Thinking

Information Services Management Lecture 3

slide22

Service Idea Selection

Emerging patterns identifying new core services.

User demand and support.

Quantitative cost benefit analysis.

Alignment / synergy with business needs.

Extent of integration with existing services.

A balancing exercise in reaching a consensus.

Information Services Management Lecture 3

slide23

Service Design

Service Concept

What does the customer get?

How will the service be delivered

Benefits, advantages, needs met.

Specification of Requirements

Information Services Management Lecture 3

slide24

Service Design

Service System

Supporting facilities Training suite, Information system

Facilitating goods PCs, training manuals

Explicit services Training in technique

Implicit Services Mastery, Certificate.

Information Services Management Lecture 3

slide25

Servicescape

Information and Technology

Physical Network

Virtual network

Structure

Ambient conditions

Spatial layout and functionality

Signs, symbols and artifacts

Information Services Management Lecture 3

slide26

Electronic Servicescape

Information

Systems

User Interfaces

Software tools

Databases

Information Services Management Lecture 3

slide27

Service Design

Service Process

Chain of activities

Defining customer involvement

Service blueprinting

Scripting

Information Services Management Lecture 3

slide28

Degree of customisation

Service

Shop

(Car repair)

Service

Factory

(Airlines, Hotels)

Degree of user contact

Professional

Service

(Law, IT consultancy)

Mass

Service

(Retailing

Schools)

Information Services Management Lecture 3

slide29

Service Blueprinting.

Differentiate between Customer, Front Office and Back Office.

Identify activities involved in the service.

Identify fail points

Draw flowchart.

Identify resource usage.

Information Services Management Lecture 3

slide30

Example of Service Blueprinting

Information Services Management Lecture 3

service blueprinting bank lending operation example
Service Blueprinting(Bank Lending Operation Example)

Loan application Branch Officer Pay book

30min--1hr.

Line of visibility

Deny

1 day 2 days 3 days

Fail point Customer wait Employee decision

===

====

====

=====

$ 0 $

====

=====

w

w

Receive

Payment

Final

payment

Decline

Notify

customer

Issue

check

Confirm

F

F

Verify

income

data

Print

payment

book

Credit

check

Accept

Delinquent

Close

account

Initial

screening

F

Verify

payer

Confirm

Employer

Credit

bureau

F

Branch

records

F

Bank

accounts

F

Accounting

Data base

records

F

W

slide33

                                                                                                                     .                                                                                                                     .

Information Services Management Lecture 3

slide34

Service Implementation

Service system integration

Change management

Service policies and service quality plan

Allocating roles and duties

Delivering training

Preview

Marketing

Launch

Information Services Management Lecture 3

slide35

Successful service development involves an understanding of:

Customer needs, requirement, expectations and preferences.

Customer service systems, that is the technical infrastructure, the customers’ knowledge and ability to use services.

Customer values and cognitive structure.

The customers’ behaviour when using services; customers’ usability processes. Focus both on what the customer does and what he wants to do!

Customers’ quality perceptions, such as easy to do business with, reliability and customers’ dissatisfaction and how customers’ complaints are managed.

Information Services Management Lecture 3

slide36

Conclusions

IT services should be innovating, developing new services, evolving new services to be the changing business needs.

Service innovation should always be on the agenda.

Building new services requires attention to current strategy and organisational values, possible futures, idea generation and rigorous design and implementation.

Information Services Management Lecture 3