2007/04/27 16:25 Panel on "Customer Perspectives on Services Innovations"

2007/04/27 16:25 Panel on "Customer Perspectives on Services Innovations", Innovation in Services Conference, Berkeley, California

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.


Discussant: Stephen Ezell, Peer insight


  • Jim Marsden, HP, Digital Photography
  • Ursal Oesterle, Swisscom Mobile, Vice-President
  • Jaakko Villa, CEO, Villa Academica Oy

[Stephen Ezell]

Focus on customer-provider interface

Peer Insight founded as a pure service innovation consulting organization

  • Formed by academic observing students going into services
  • Tekes study, 4 month study, innovation in four industries

Professional services, financial services, retail and distribution

1. Customers are the central reference point, not direct competitors

2. Service concepts shift boundaries

3. Information technology

Traditional value chain is being turned on head

  • Not starting from core competencies, they're starting from customer needs

Customer experience: cX

Zeithamel and Berry: five service attributes

Paco Underhill: job as service innovators is create unique human value

Research approaches:

  • Axes: Latent / explicit, micro / macro
  • Moving from market research to empathic research (latent micro) vs. video ethnography (latent macro)
  • Bank of America: keep the change, rounding, to put the dollars in a bank account
  • Found this via ethnography, watching a person balance a chequebook by rounding up to the dollar
  • Have gotten 3 million new account in 12 months

See philosophy and concepts understood, and methods and techniques exist, but a missing middle: operating models

  • Changing from being faith-based initiatives

[Jim Marsden, HP, Program Manager, Customer Experience Design Change Effort]

With HP 18 years, half in marketing management, most in startup businesses or those going through change

  • Have migrated to organization development

HP's digital photography business

  • Had a collection of assets: scanners, printers
  • Each had difference governance and measurements

Usage model for mom, picking up a camera, doing the things easily

  • Also a business in retail photofinishing, selling in kiosks
  • Want to have offerings come together to be easy
  • Home, Snapfish on Internet, then retail (e.g. printing)

Lewis Carbone: Customers will always have an experience

Customer experience transformation

  • Develop HP's brand
  • Deliver customer value enabling customers to easily tell life's stories
  • Deliver business benefits

Organization development in four tracks

  • Make a sustainable shift across cultures
  • 1. Executive leadership track, working at vp level, what does it mean to be leading an experience-based business
  • 2. Experience design track
  • 3. Operating model
  • 4. Organization development

Results to date:

  • From targeted projects, coming to market
  • Strategies formalized across different businesses
  • Expanded business models based on usage
  • Have product life cycle
  • More ethnographic research come together with market research
  • Move from design as people who come in late to make things pretty, to those who engage to customers and create early insights

[Jaakko Villa, CEO, Villa Academica Oy]

Have some customers come and say they have new technology, but don't know what they do with it

  • Went to China with ethnographers and anthropologists
  • Took 5 to 10 people into a room, and co-created a service

Oval Time: a place in your life

  • Triangle
    • Linear thinking
    • Disruptive thinking, e.g. service innovation
    • Visionary ways of working, managing innovation
  • Dimensions:
    • Time
    • Order to chaos

Have engaged 10 CEOs

  • Are you using techniques balanced in the triangle?

Doing work with an Indian-based company on a web interface

Six months, with prototype with 10 CEOs, and then will expand

[Ursal Oesterle, Swisscom Mobile, Vice-President]

Swisscom is telecom company

  • Does a lot of scouting for best practice

Telecom used to be a simple business, just voice

  • Everyone wants integrated services on multiple service platforms
  • How to adapt to Web 2.0?

CEO started Service Champion 08:  good is nowhere good enough for us

  • Want to be undisputed #1 in service

Execution is crucial

  • Customer value, but want to consist across the company

Bottom-up initiative:  Future 2.0, need a disruptive step

  • Get a service culture throughout the business
  • Both internal and external

Big project, budget $2.5M

  • Brought service providers to Silicon Valley

Created some meeting places, whiteboards across whole room

  • Watering holes: where animals that usually fight, all go together
  • Structured meetings where someone can present for feedback
  • They like this, feedback, not not judgement

Work more with customers

  • Swisscom Mobile Labs: put Web 2.0 applications out, and the non-popular ones will die out rapidly
  • We can't master them all
  • e.g. 50 other applications that were like MySpace
  • Do customer observations, rapid prototyping (like Ideo Deep Dives), get customer feedback in homes
  • Rule: all employees have to spend 2 days per year in stores for interaction with customer


Some people want self-service, not experience

  • Less is more.
  • Want to understand what customers are looking for

Cases when services break down, then need empowered customers engagements, don't want to point a customer on hold

  • Swisscom had 20 second respond time


  • Swisscom:  All managers, simultaneously

Executive development, support

  • HP: Good support, had senior executive sponsorship
  • Did learning journeys: 2 days workshops, 25 VPs, created common ground understanding of the opportunity
  • Didn't know a lot about these spaces, what do we need to learn?
  • Who are the best of breed people who do this, e.g. customer relationship management, went to visit Harrah's
  • Balance between immediate commitments and transformation

Main findings in the Tekes report?  Extent to which findings are industry-specific?

  • Address this offline
  • A lot of findings at the entrepreneurial level