2012 towards smarter services
1 like706 views
Zaheer Travadi from IBM gave a presentation on smarter services at IIM-Udaipur on March 3rd, 2012. The presentation covered several topics: the 4Is of services, design for delight, idea to implementation, business model innovation, and achieving scale through a consistent customer experience. Travadi discussed how services have become predominant due to factors like specialization and complexity. He also noted that innovation must now combine people, technology, and business value. The presentation proposed moving from goods-based to services-based innovation and emphasized the importance of collaboration, feedback loops, and an outside-in perspective.
2012 towards smarter services
- 1. Zaheer Travadi - IBM General Business Geo Expansion Mar 03, 2012 2012 Towards Smater Services Views presented here are individual and may not be endorsed by IBM IIM -UDAIPUR 2012
- 2. Smarter Services Agenda 1. Conversation Starter 2. 4Is 3. D4D 4. I2I 5. R=G; n=1 6. TMTCu Ver.2 2 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 3. Smarter Services Why have Services become Predominant? Need for trade in services Complexity Specialization Productivity 3 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 4. Smarter Services Economy has reached a New Era A SMARTER PLANET PEOPLE INSTRUMENTED COMPANIES, INSTITUTIONS, INDUSTRIES INTERCONNECTED MAN-MADE SYSTEMS INTELLIGENT NATURE’S SYSTEMS Network Ubiquity More than a billion Internet users today Open Standards Widely-adopted technical and transaction specifications New Business Designs Horizontally-integrated operations + + 4 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 5. Smarter Services The Nature of Innovation is Changing Business Models Science & & Processes Technology People & Culture The marketplace requires innovation that combines people, technology and business value 5 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 6. Smarter Services Enterprise Pressures & Opportunities commoditization pressures CEOs: Extent of fundamental change needed over next two years new/increased competition Moderate global market opportunities 22% adjacent market opportunities A lot Little or no 65% 13% global volatility & disruption competing business models IBM Global CEO Study 2006 6 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 7. Smarter Services It’s time to take advantage of… smart objects the connectedness of everything supercomputing for everyone information put to work collaboration & co-creation the marketplace for expertise the virtual corporation 7 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 8. Smarter Services It’s time to innovate CEOs’ View: Primary Responsibility for Innovation Leadership products services 27% business processes No Owner 35% CEOs/Leaders business models 14% Division management and culture Mgrs 24% Functional Mgrs policy and society IBM Global CEO Study 2006 8 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 9. Smarter Services Agenda - 1 - Conversation Starter 1. 4Is – The 4 Is of Services 2. D4D 3. I2I 4. R=G; n=1 - TMTCu Ver.2 9 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 10. Smarter Services Goods Vs Services Innovation All the smart people in our field, work We must collaborate with smart for us people outside & inside To profit from R&D we must discover, We need not originate research to develop & distribute benefit We have get to market first to win if Building better business model more we innovate important than first to market We must control our IP and clearly We can profit from others’ use of our define our Firm’s boundaries IP and benefit from theirs Learn by “using” & “doing” Learn continuously through Feedback loops and client linkages Consumer Insight Consumer Experience 10 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 11. Smarter Services Goods Vs Services Innovation 11 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 12. Smarter Services Service Marketing INTERFACE Courtesy: Fujitsu 12 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 13. Smarter Services T-shaped Adaptive Innovator Breadth Depth Social Science Management Engineering (People) (Business) (Technology) 13 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 14. Smarter Services Agenda - 2 - Conversation Starter 1. 4Is 2. D4D – Design for Delight 3. I2I 4. R=G; n=1 - TMTCu Ver.2 14 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 15. Smarter Services Service User Experience Design – Honeycomb Model Courtesy: Semantic Studios 15 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 16. Smarter Services Services Blueprint Courtesy: Spire 16 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 17. Smarter Services Democratization of Design Increasingly capable & cheaper tools that require less skill and training to use Make it easier for user-innovators to gain access to rich libraries of modifiable components that have been placed in the public domain – Today users design sophisticated new products, services, music and art – Open source software movement – Web 2.0 explicitly recognizes users add value 17 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 18. Smarter Services Agenda - 3 - Conversation Starter 1. 4Is 2. D4D 3. I2I – Idea to Implementation 4. R=G; n=1 - TMTCu Ver.2 18 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 19. Smarter Services Deciding on your Services Innovation 1. Check for Heuristic Affect – Has the team fallen in love with its proposal? 2. Check for Groupthink – How were the dissenting opinions in the team handled? 3. Check for Saliency Bias – could the diagnosis be overly influenced by an analogy? 4. Check for Confirmation Bias – Are credible alternatives proposed? 5. Check for Availability Bias – What if you had to make this decision later in time? 6. Check for Anchoring Bias – Do you know where the numbers came from? 7. Check for Halo Effect – Would a best practice replication be as successful? 8. Check for Sunk Cost Fallacy - Is the proposal based on a history of past decisions? 19 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 20. Smarter Services Typology of Services Innovation Business model Process/system Asset innovation: innovation: innovation: Substantial Changes in how Introduction of organizational information entirely new changes in how exchanged between services as an Asset revenues and profits customer and (service product) are earned service provider In reality all 3 are interrelated as an iterative process 20 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 21. Smarter Services Many efforts to transform services have often been hampered Service Innovation Barriers Getting alignment across organizations 73% Obstacles to Improving Customer Experience Implementing technology 60% Trying to change employee behavior 57% Defining our customer experience strategy 49% Measuring customer experience 49% Understanding the needs of our customers 38% Designing usable interfaces for customers 35% Gaining executive commitment 27% Trying to change customer behavior 23% Identifying our target customers 16% None of the above 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% Source: Forrester Research % of Respondents 21 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 22. Smarter Services Services Innovation Framework “The Ten Types of Innovation” by Larry Keeley, Doblin Inc. 22 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 23. Smarter Services “Outside In” - Most Successful Areas for Services Innovation 23 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 24. Smarter Services Approach to Services Innovation Venture Capitalists ISVs Business IT Analysts Partners Media Alumni Legal University & Academia Organization Thought Leaders Keystone Clients Community Relationships Investors Country Gov’t General Standards Programs Managers Bodies Multi-disciplinary Globally Collaborative Open 24 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 25. Smarter Services Agenda - 4 - Conversation Starter 1. 4Is 2. D4D 3. I2I 4. R=G; n=1 – Business Model Innovation - TMTCu Ver.2 25 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 26. Smarter Services Business Model Innovation 26 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 27. Smarter Services Assessing current and desired positions to create path Moving from current to target position • Are there ways to reconfigure / re- allocated sources of revenue in your business? Revenue Model • How can you sell elements of your services / offerings differently? • How can you leverage new / High • How can you reconfigure value emerging business models in your elements in your business? industries? From other industries? • How does new/emerging technology change the parameters? • How can you select and leverage • Are you a leader of follower when it unique assets & capabilities in your comes to industry change? business that provide competitive differentiation? Low • What should you do vs where should you partner for optimal value? Current Position Target Position Industry Model Enterprise Model Degree of Innovation Timing of Innovation BMI Path • How does the degree of innovation relate • Do you drive change in the industry, or is • Which business model innovation paths to your industry? How will it change in the it imposed on you? Lead vs follow? are we / should you explore? future? • Which ones are most aligned with our • What are the disruptive technologies or • Do you have the right balance? models emerging today? industry, capabilities, vision? 27 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 28. Smarter Services n=1; R=G Well established Social Vision Consistent experience to all customers Drive excellence through Lean business processes Collaboration to co-create value Resources = Global create Engineered Engineered Experience Experience workforce Integrated N=1 Open doors in to Large Opportunities Scalability Niche Technology Architecture Courtesy: CK Prahlad 28 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 29. Smarter Services Agenda - Conversation Starter 1. 4Is 2. D4D 3. I2I 4. R=G; n=1 - TMTCu Ver.2 – Too Much To Confuse You!! 29 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 30. Smarter Services Where does Six Sigma fall short in Services Innovation Six Sigma Thinking Customer-Experience Led Innovation 1. Introduce variability when it creates 1. Eliminate variability (reductive) preference 2. Eliminate waste 2. Allow the customer to judge what is waste 3. Minimize cost 3. Tolerate additional cost as when it creates a preference 4. Map processes 4. Map customer journeys 5. Test hypotheses 5. Explore important questions to create new hypotheses 6. Rely on large numbers to create certainty 6. Rely on numbers to uncover new possibilities 7. Use process capability as final arbiter for 7. Use demonstrated customer behavior as the decision making final arbiter 30 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 31. Smarter Services Are there “scale laws” of service innovation? Moore’s Law underlies much of the information technology and business capability growth over the last half century. Are there analogous “predictable capability doubling laws” that apply in the realm of services? It seems three improvement or learning curve laws that might be applicable in services: 1. The more an activity is performed (time period doubling, demand doubling) the more opportunities there are to improve the process 2. The better an activity can be measured (sensor deployment doubling, sensor precision doubling, relevant measurement variables doubling) and modeled the more opportunities there are to improve the process 3. The more activities that depend on a common process (doubling potential demand points), the more likely investment can be raised to improve the process Example: Amazon’s Book Buying Recommendation Service Quality –The quality of the recommendations depends on accurate statistics – the more purchases made, the better the statistical estimates for recommendations Example: Call Centers Query-Response Productivity and Quality –The speed and quality of call center responses can be improved significantly given accurate statistics about the kinds and number of queries that are likely to be received. Example: New Service Offerings –The viability of new service offerings often depends on the scale (amount of demand) in adjacent market segments where service satisfaction is low enough to result in sufficient critical mass of defections to bootstrap the new offering. Example: Predictable Education Gains (Student Knowledge, Teacher Satisfaction) –If eLearning can be used to shift 20% of routine teacher activities into automation that can be covered in half the normal time, freeing up 10% of teacher time each year to innovate and add new content or exploratory activities to the curriculum, then each year students will be learning more and teachers will have time to try new things 31 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 32. Andragogy from IBM IBM Institute for Business Value – http://www.ibm.com/iibv IBM University – http://www.ibm.com/university IBM Services Science Management & Engineering – http://www.ibm.com/university/ssme IBM INNOV8 Game – http://www-01.ibm.com/software/solutions/soa/innov8/full.html IBM CityOne Game* – http://www.ibm.com/software/solutions/soa/innov8/cityone/index.jsp 32 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
- 33. Smarter Services Thank you! Zaheer N Travadi IBM India General Business Manager - Geo Expansion Phone: 91-97404-00211 E-mail: zaheer.travadi@in.ibm.com 33 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services