Both large organisations and start-ups need to think about new ways to offer services. London Business School Professor Kamalini Ramdas shares her research, highlighting opportunities that exist through innovating different aspects of a service, including the service product and the way in which it is delivered.

1. Innovation in Services
BOTH LARGE ORGANISATIONS AND START-UPS NEED TO THINK ABOUT NEW WAYS
TO OFFER SERVICES. IN THIS SESSION KAMALINI WILL SHARE HER RESEARCH,
HIGHLIGHTING OPPORTUNITIES THAT EXIST THROUGH INNOVATING DIFFERENT
ASPECTS OF A SERVICE, INCLUDING THE SERVICE PRODUCT AND THE WAY IN WHICH
IT IS DELIVERED.
Kamalini Ramdas
The Deloitte Professor in Innovation and Entrepreneurship and
Professor of Management Science and Operations

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13. Innovation in Services
One-on-One
One-on-Many
Many-on-One
Many-on-Many
Virtual
Value
Copyright Ramdas, Teisberg & Tucker 2012
Harvard Business Review, Forthcoming
KAMALINI RAMDAS

14. Does higher quality or wider access imply higher cost in your current service model?
Pricing/Product Support
Delivery Mix
Service Structure Service Boundary Service Organization Service Location
How does the client experience What is the client’s true What organization and timing Where would the client be best
the service encounter? underlying need? of tasks creates highest value served?
for the client?
Does the information you share Which parts of the service can What tasks do you do each day? How mobile are the people,
with one client become less or only your organization do? information and equipment that
more valuable if another client the service requires?
has it? Can your client or a third party
do some aspects of the service Which of these can be done by
better than you? someone who doesn’t have Service
your level of experience and How many locations does your
expertise? client or service provider go to Product
Can your clients learn from or Where are the frustrations with
support each other? coordination or communication? each week?
Does everyone think the Which of these can be done
solution to the problem is IT? better by someone else? How much time is spent in transit
Do your clients need multiple vs. providing service?
types of expertise in the What are the barriers to better
service? client results and who, if
anyone, currently offers those Who can do those tasks?
services? Where does inconvenience or
inefficiency occur now?
What parts of the service are not
delivered or tend to get lost or
forgotten?
Copyright Ramdas, Teisberg & Tucker 2012
Harvard Business Review, Forthcoming
KAMALINI RAMDAS

15. Systematic creativity is widely used to generate successful new product ideas
Unearth Patterns Understand Translate to other
why/when/where contexts
a pattern works Different Geography
Different Industry
Move
Upmarket
Kamalini Ramdas

16. Can we find patterns in
business models?
Kamalini Ramdas

17. The Theory of a Business
TIMELINE OF EVENTS
(e.g. RETAIL) Time
Assortment, Production Sales Markdowns Receivables
Pricing
PROFIT FORMULA
Revenue Model Cost Structure Resource Velocity
Price Direct, Indirect costs Rate of value output
Volume (market Size) Economies of scale and Lead times, turns,
Ancillary Sales scope throughput, utilization
RISK EXPOSURE
Riskiness of Revenues, Costs and Resource Velocity
Sensitivity of profits to changes in price, volume, costs, resource utilization
(based on Johnson et al 2008 & Girotra & Netessine 2011)
Kamalini Ramdas

18. INNOVATING THE RISK EXPOSURE IN PARTNERSHIPS…
TIMELINE OF EVENTS
Time
Assortment, Production Sales Markdowns Receivables
Pricing
PROFIT FORMULA
Revenue Model Cost Structure Resource Velocity
Price Direct, Indirect costs Rate of value output
Volume (market Size) Economies of scale and Lead times, turns,
Ancillary Sales scope throughput, utilization
RISK EXPOSURE
Riskiness of Revenues, Costs and Resource Velocity
Sensitivity of profits to changes in price, volume, costs, resource utilization
(based on Johnson et al 2008 & Girotra & Netessine 2011)
Kamalini Ramdas

19. Can we reduce risk by
managing relationships?
Kamalini Ramdas

20. INNOVATING THE TIMELINE – PLACING BETS AFTER GETTING INFORMATION
TIMELINE OF EVENTS
Time
Assortment, Production Sales Markdowns Receivables
Pricing
PROFIT FORMULA
Revenue Model Cost Structure Resource Velocity
Price Direct, Indirect costs Rate of value output
Volume (market Size) Economies of scale and Lead times, turns,
Ancillary Sales scope throughput, utilization
RISK EXPOSURE
Riskiness of Revenues, Costs and Resource Velocity
Sensitivity of profits to changes in price, volume, costs, resource utilization
(based on Johnson et al 2008 & Girotra & Netessine 2011)
Kamalini Ramdas

21. Can we flip the timeline so
that we have better
information before placing
bets?
Kamalini Ramdas

22. Still need to go from free form brainstorming
to a single service concept
Kamalini Ramdas

23. The journey to a final service concept
Kamalini Ramdas

24. Experience Modeling: The Common Cold
Feeling good Feeling better
Aromatherapy
Something Hydrotherapy
feels
different Getting
over
a cold
Getting a cold Have a cold
Based on research done at E-Labs
Kamalini Ramdas

25. Steps in Experience Modeling
► Gather detailed multi-media data on individual users
► Display data visually and focus on identifying patterns
► Collapse data into broad conceptual categories
► Identify time trends such as phases of the experience
Based on research done at E-Labs
Kamalini Ramdas

26. Whose Life is This?
A Service Innovation Exercise
Kamalini Ramdas

27. Exercise
► Form a group
► Pick one person in the set of pictures whose life you will analyze
► Develop a “bug” list for your chosen person based on the information in all of the
pictures
► Based on your bug list and your assigned service industry, come up with new
service concepts for your chosen person, particularly service concepts that use
your company’s core capabilities
► Pick the best, and think about what underlying dimensions of service innovation
they embody
Kamalini Ramdas

28. Pick an Industry to innovate in
► Financial Services
► Education
► Health and well being
► Legal services
► Entertainment
► Travel and leisure
► Home support services
► Insurance
► Restaurant / food services
► Real estate / construction
► Media
Kamalini Ramdas

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37. Bug List Service Concepts
Develop a “bug” list for your chosen Brainstorm service concepts and
person from the set of pictures. identify what dimensions of service
innovation they rest on.
Kamalini Ramdas

38. “Design products for people you love, never for
people you don’t know”
Herman Miller design
philosophy
Kamalini Ramdas