Service Innovation and Service Delivery – Together but Apart ….
Service organizations must grow by offering new solutions to customer needs. The trust needed for a consumer of services to buy a new offering is obviously highly dependent on their perception of the service quality they are experiencing on current services. If the customer has issues with service delivery on existing services, it is no surprise there will be a lack of confidence in buying new services. However, service delivery excellence, while critical to successfully expanding new services, is a different capability from service innovation.
Successful service innovation depends on (i) defining unmet VOC for which the customer has not contracted as they currently are doing it themselves or have other vendors doing it and (ii) the ability to design better processes as measured by the customer than the customer or an existing third party provider can design. Service delivery is about executing against customer expectations on existing contracts and internal processes. Improving service delivery is about understanding the service providers processes. Succeeding with new services about understanding the customers or a third parties processes.
Never assume excellent service delivery ensures the ability to define, design and deliver new services. In the end, the muscle tissue a service organization builds by improving service delivery will improve perception for new services but not necessarily the ability to define, design and deliver new services or to innovate. Service innovation must be addressed separately from Service delivery. The upside of building service innovation ability is that if the service provider succeeds it will be able to extend beyond providing existing services.
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