The secret to true service innovation

The secret to true service innovation lies in shifting focus away from the service solution back to the customer. Rather than asking, "How are we doing?" managers must ask, "How is the customer doing?" For far too many businesses, service innovation means making incremental improvements to existing services. While a focus on improving current services certainly has its place, we indicate that this has constrained firms' innovation capabilities by limiting new ideas. In order to truly innovate, firms must expand their focus beyond existing services and service capabilities to address the fundamental needs of their customers, including the jobs and outcomes those customers are trying to achieve. By further focusing service innovation on developing shared solutions with customers, firms are better able to create breakthrough service offerings and processes. This will result in value co-creation that is both meaningful to customers and uniquely differentiated from competitive offerings. To this end, we present a four-step process for firms to guide job-centric service innovation. (c) 2012 Kelley School of Business, Indiana University. Published by Elsevier Inc. All rights reserved.