MANAGING SERVICE INNOVATION

Managing service innovation



Managing Service Innovation

Introduction

Service innovation is not a very old concept in the field of business. The concept of service innovation was discussed for the very first time in Miles in the year 1993, and it has experienced major developments during the past two decades. Service innovation involves three important things in which innovation is required including services, service processes and service firms. Service innovation is considered to an improved service process that is brought in to practice by a number of organizations. It could be referred to being a distribution system, customer interaction channel, or a technological concept or a combination of these (Shehabuddeen, 2007, pp. 102). The core focus of this paper is to identify and discuss a number of questions related to service innovation.

Discussion

Service innovation is a useful concept for a business organization for the betterment of the organization along with the satisfaction and retention of customers. Service innovation also aims to signify and establish customer requirements and then work for living up to the expectations of the customers through innovation in the services.

Establishment of Customer Requirements

Customer requirements are referred to the expectations of the customers from the products or services of an organization. In addition to this, it is very important for an innovative organization to create and establish the requirements of their customers. There are organizations which involve innovations in their processes to develop the expectations of the customers. It is obvious that the requirements of the customers could be projected from their past experiences. In addition to this, it is very obvious that the business environment is changing due to the emergence of technology businesses innovate their service processes to give something new and innovative to their customers. It is very significantly observed that a larger number of customers are not sure about their requirements from a particular product or service because of rapid innovations in the technology world. So, in this case it becomes very important for the business organizations to establish the requirements of the customers.

The establishment of new requirements of the customers based on innovation begins with the existing issue that is experienced by the individuals (Omachonu, 2009, pp. 122). It is very important for an organization to identify that main issue point of the customers, It is observed that the smaller the issue will be, the better it will be for the organization to establish ...