Innovation Process Model of the Meaning of a Service - A Case Study in Home Automation

Hubert C.Y. Chan
2013 International Journal of Business Administration  
Instead of a market-pull and technology-push dichotomy, applying one of the Six Senses posited by Pink (2006) , the 'Meaning' in product innovation, this study proposes an Service Innovation Process Model based on the Design Driven innovation (DDI) process advocated by Verganti (2009) , and business model configuration depicted by Battistella et al., (2012) . The latter is already an extension of the former; this study further extends the model to a service design, value co-creation with
more » ... lders, market penetration, and market feedback as a complete cycle. The objective is to bring in radical service innovation with minimum possible risk. Repertory Grid technique had been employed to explore the affordance of the proposed new applications in the DDI process in a case study of Home Automation. It was found that the findings in the Repertory Grid were quite aligned with those in the DDI process. The case study illustrated stakeholders' involvement throughout the process is required in order to achieve the objective. It also reveals a real life example in designing the detail workflow/process/user experience of a new service after the DDI process. Product-focused had to be complemented with service-focused innovation in order to be sustainable. Although there is no one-size-fits all Innovation process model, this study demonstrates a practical way to explore the 'Meaning' of a Service in a holistic practical approach. Keywords: service innovation process model, meaning of a service, home automation, repertory grid, business model Introduction Businesses are currently in a realm of global competition and the rapid pace of development in technology and communication has made the competition even tenser as product cycles are shortened. Constant innovation is required to keep businesses afloat and grow continuously. Although there are no universal innovation process models that suit all industries, there are still a lot of models have been proven in product-focused innovation. Regret that product-focused innovation to gain competitive advantage worked in the past can no longer provide sustainable competitive advantage due to the ever shortening product life cycle and commoditization of many innovations. However, service-focused innovation which is domain driven and based on tactic knowledge is rather difficult to be imitated and able to sustain for a much longer while (Nonaka and Takeuchi, 1995) . Besides, today's sophisticated and well-informed customers seek value beyond price, quality, speed, and customization from products and services. They want the sense of beauty, safety, comfort, affection, or even care as manifested in the total user experience. Businesses often have to decide what projects or innovations to pursue and what ought to be abandoned. This is part of the innovation process which could either be driven by technological push (by inventing new technology) or customer pull (by addressing customer demands and needs). The former approach believes that customer cannot realize their latent need because they are familiar with the latest technological development which can be applied in new product development. The latter approach believes that customer needs can be expressed through articulated and unarticulated expressions. Articulated needs involve information dealing with what customers say. Data can be collected through traditional methods such as focus groups, personal depth interviews, surveys, questionnaires, and product clinics. Unarticulated needs generally involve information dealing with what customers do and what customers make. Information can be gathered through participant observation, applied ethnography, and contextual enquiry. The context is the everyday situation of use and includes the environment, the people, their goals and processes, and other products (Conley C. V., 2005). Contextual research gives the type of information companies can
doi:10.5430/ijba.v4n5p1 fatcat:uan6njeztzeoxbstdzosdglppm