[Question 1] Service-logic innovation
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soraya_berdeil
walter_muller
t98701102
Doris Yu
BartekWu
shirleyo
edith_bonnefond
jeremie_francois
sophie_pelling
lawrence_lo
florent_lefevre
Yann_Gerardi
16 posters
E-Commerce Forum :: Online Forum IV (2009/10/28) - Topic: Service-Logic Innovations: How to Innovate Customers, Not Products
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[Question 1] Service-logic innovation
by Yann_Gerardi Sun Oct 25, 2009 11:53 pm
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How innovative is the service-logic concept?
Does it really differentiate from the traditional attribute-based view of innovation?
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How innovative is the service-logic concept?
Does it really differentiate from the traditional attribute-based view of innovation?
~~~~
Yann_Gerardi- Posts : 31
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Asking for more...
by florent_lefevre Mon Oct 26, 2009 11:54 am
I think it is most innovative ! Nowadays, almost every company can offer the same product. For example, a airplane ticket from New York to San Francisco, you can find a lot of possibilities. What if one of the company offer a door-to-door service, helps you with booking a restaurant or an hotel when you arrive, and suggest some gymnastics on your seat in order not to be sore when you arrive ? I really believe that service-logic innovation is bridging the gap between performance and expectation, and that's crucial !
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Re: [Question 1] Service-logic innovation
by lawrence_lo Mon Oct 26, 2009 12:34 pm
yea, i agree with florent, companies have sell products based on more than just quality and price. consumers are looking for extra added value to increase their surplus.
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Re: [Question 1] Service-logic innovation
by sophie_pelling Mon Oct 26, 2009 1:26 pm
I agree, I think that this has been realised and with service-logic innovation, they are asking themselves "why are customers choosing us over other firms". And from these results they are innovating their services. The customers therefore are contributing to the "process of adding value".
This I think is more effective than the traditional attribute-based view of innovation. And like florence said with so many other companies offering the same products, I dont think this could be any more important.
This I think is more effective than the traditional attribute-based view of innovation. And like florence said with so many other companies offering the same products, I dont think this could be any more important.
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Re: [Question 1] Service-logic innovation
by jeremie_francois Mon Oct 26, 2009 1:53 pm
The main difference I perceived from the case examples was the mutual
gains a company and its customers could get from this approach, like
"synergies". The following saying illustrates this pretty well:
Give a man a fish, you've fed him for a day
Teach a man to fish, you've fed him for a lifetime
Teach a man to sell fish, he'll eat steak (that you can sell to him of course)!
gains a company and its customers could get from this approach, like
"synergies". The following saying illustrates this pretty well:
Give a man a fish, you've fed him for a day
Teach a man to fish, you've fed him for a lifetime
Teach a man to sell fish, he'll eat steak (that you can sell to him of course)!
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Re: [Question 1] Service-logic innovation
by edith_bonnefond Mon Oct 26, 2009 2:05 pm
the service-logic concept is definitely more innovative than the traditional attribute-based view of innovation.
Any company is now designing its products with this second approach, usinf the service-logic concept give them a serious competitive advantage on the others, above all if they are the first to do so.
Users will go directly to the company that offer the service they need in each and every situation, and as the service-logic concept is much more flexible, i think it ads much more value to the product or service.
Any company is now designing its products with this second approach, usinf the service-logic concept give them a serious competitive advantage on the others, above all if they are the first to do so.
Users will go directly to the company that offer the service they need in each and every situation, and as the service-logic concept is much more flexible, i think it ads much more value to the product or service.
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Re: [Question 1] Service-logic innovation
by shirleyo Mon Oct 26, 2009 2:52 pm
I think the major difference between sevice-logic innovation and traditional attribute based view rests on the understanding that any innovation changes they way customers co-create value with firm. The line between product and service blurred. Firms need to think how to include their customers to co-create the innovation, not simply offer a holistic, or standard product centric view. 
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Re: [Question 1] Service-logic innovation
by BartekWu Mon Oct 26, 2009 3:05 pm
I don't really agree with that. I think that this is simply a new and more sophisticated way of making product differentiation. Of course in order to gain market position and conquer it, to attract and convince consumers you have to be innovative. But what is the difference between product and service? For me Service IS a part of the product. And if someone finds a new way to approach me and say "this is better, try this", it is just marketing.
It seems to me that it is a more or less linguistic discussion, whether or not oyu call something service, logic, product or something combined.
It seems to me that it is a more or less linguistic discussion, whether or not oyu call something service, logic, product or something combined.
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Re: [Question 1] Service-logic innovation
by florent_lefevre Mon Oct 26, 2009 3:47 pm
Service part of the product ? I am not sure... Let's say you want to buy a mattress. You find two options: One seller is okay to sell it to you at 500 USD, the other one at 600 USD. It is more or less the same quality and in both cases, you'll have a mattress. However, seller B gives you the opportunity to bring it back and have your money back if you are not satisfied with the product. You sure can have the product and no service, but service does make the difference.
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Re: [Question 1] Service-logic innovation
by Doris Yu Mon Oct 26, 2009 4:05 pm
Humm, I think when we call something innovative that means it has become more important and needs our attention. And what's more, it will bring us money.
The main idea for these 2 views is the same, that is make profits from the knowledge or information a company can get.
In the past, companies hired groups of well-educated people coz companies believe that good and smart people can think deeper and see further developments in order to generate more profits. But now companies figure out that actually there are more brilliant ideas or smarter ways to do things that can also bring profits to themselves. So by connecting with more customers, companies get more ideas and can see more clear what a consumer needs, not just making managerial assumptions then.
The value of knowledge is changing. Some knowledge in the past is now just information on internet. I think in the future what's more important is that how people use the knowledge / information on hand.
The main idea for these 2 views is the same, that is make profits from the knowledge or information a company can get.
In the past, companies hired groups of well-educated people coz companies believe that good and smart people can think deeper and see further developments in order to generate more profits. But now companies figure out that actually there are more brilliant ideas or smarter ways to do things that can also bring profits to themselves. So by connecting with more customers, companies get more ideas and can see more clear what a consumer needs, not just making managerial assumptions then.
The value of knowledge is changing. Some knowledge in the past is now just information on internet. I think in the future what's more important is that how people use the knowledge / information on hand.
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Re: [Question 1] Service-logic innovation
by Yann_Gerardi Mon Oct 26, 2009 4:50 pm
BartekWu wrote:If someone finds a new way to approach me and say "this is better, try this", it is just marketing.
Of course the service-logic approach must be intensively backed up by
marketing, but here the innovation is to allow customers to define and
derive value their own way through customization, individualization and
collaboration between all the actors. This is definitely not only marketing!
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Re: [Question 1] Service-logic innovation
by shirleyo Mon Oct 26, 2009 5:28 pm
Doris Yu wrote:Humm, I think when we call something innovative that means it has become more important and needs our attention. And what's more, it will bring us money.
The main idea for these 2 views is the same, that is make profits from the knowledge or information a company can get.
In the past, companies hired groups of well-educated people coz companies believe that good and smart people can think deeper and see further developments in order to generate more profits. But now companies figure out that actually there are more brilliant ideas or smarter ways to do things that can also bring profits to themselves. So by connecting with more customers, companies get more ideas and can see more clear what a consumer needs, not just making managerial assumptions then.
The value of knowledge is changing. Some knowledge in the past is now just information on internet. I think in the future what's more important is that how people use the knowledge / information on hand.
Doris, I agree with you.
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Re: [Question 1] Service-logic innovation
by t98701102 Mon Oct 26, 2009 6:04 pm
I think the service-logic concept is just a natural evolution which combines the importance of good service with either building upon other innovations or create new ones, in response to customer trends and adapting needs and wants.
Few companies can actually convince people to think about the way companies deliver their products to the buying consumers. The average consumer will not think too much about how the innovation behind the product, however they do care and think about 'levels of service' offered by companies. To improve consumer service, one must think purely about how to increase ease when buying, increase speed of application, and delivering this for the lowest price.
If companies cannot offer this to beat others, or compete in the market place then new service-logic innovation needs to take place.
Few companies can actually convince people to think about the way companies deliver their products to the buying consumers. The average consumer will not think too much about how the innovation behind the product, however they do care and think about 'levels of service' offered by companies. To improve consumer service, one must think purely about how to increase ease when buying, increase speed of application, and delivering this for the lowest price.
If companies cannot offer this to beat others, or compete in the market place then new service-logic innovation needs to take place.
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Re: [Question 1] Service-logic innovation
by walter_muller Mon Oct 26, 2009 6:04 pm
I find it curius how everybody seems to agree that service logic innovation, is a break through in how companies add value to their products.
I agree on, that previous companies where producing products and pushing them into the market without considering the customer. However, this has slowly changed as the customer has become the most valueble asset of companies. This is just a part of business evolution![[Question 1] Service-logic innovation Icon_biggrin](https://2img.net/i/fa/i/smiles/icon_biggrin.png)
Nowadays it is a fact that companies need to include the customer in their value chain and product design. In my opinion, customers has become a threshold asset. A need, if the company wants to compete in a given market.
Hence, i dont see service logic innovation as being really innovative. Remember that the case is from last year. Many companies have revolutionised the business models by including the customer in a higher extent. Ex. when Dell launched Dell.com in 1998, when amazon launched amazon.com, when Ikea created build your self furnichers. All these examples are pretty old.
I perceive service logic innovation as being a combination of different theories, the classical attributed based innovation theory, supply chain management theory, porters differentiation theory etc. Companies are any how including different approches to their innovation. So what have service logi innovation theory in really brought us, except of putting several well know theories together?
Am i right or wrong? why?
I agree on, that previous companies where producing products and pushing them into the market without considering the customer. However, this has slowly changed as the customer has become the most valueble asset of companies. This is just a part of business evolution
Nowadays it is a fact that companies need to include the customer in their value chain and product design. In my opinion, customers has become a threshold asset. A need, if the company wants to compete in a given market.
Hence, i dont see service logic innovation as being really innovative. Remember that the case is from last year. Many companies have revolutionised the business models by including the customer in a higher extent. Ex. when Dell launched Dell.com in 1998, when amazon launched amazon.com, when Ikea created build your self furnichers. All these examples are pretty old.
I perceive service logic innovation as being a combination of different theories, the classical attributed based innovation theory, supply chain management theory, porters differentiation theory etc. Companies are any how including different approches to their innovation. So what have service logi innovation theory in really brought us, except of putting several well know theories together?
Am i right or wrong? why?
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Re: [Question 1] Service-logic innovation
by soraya_berdeil Mon Oct 26, 2009 6:44 pm
Of course the greatest economic value comes from innovations that directly impacts costumers value , it is to say, providing exceptional value to the most important customer in the value chain; besides, the idea of customer centric focus is crucial for any enterprise. In Service logic innovation the new idea is to include the customers to co-create the innovation in their own way . Innovation can occur in another way, with or without technology, in this case it takes place in services.
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Re: [Question 1] Service-logic innovation
by chloé_laluc Mon Oct 26, 2009 8:05 pm
In my point of view, service logic innovation differenciate from the traditional attribute-based view of innovation because it is based on the recognition that innovative new products enable customers to find new ways to service their personnal needs, and because it is tightly linked to customers' satisfaction. It enable the firm to co create value with its customers, and it is also a way of co-solving customers' problems. In that sense, I think that the service-logic concept is really innovative
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Re: [Question 1] Service-logic innovation
by kathia Morano Mon Oct 26, 2009 10:30 pm
As far as I'm concerned, I think that service-logic innovation is really innovative but customers have to pay the price too. So, depending on the target, some people would not choose the new ways to service their personnal needs but would rather prefer just have the product in itself to save money, they would rather focus on non customized or non service logic concept. Innovation is a price to pay!! and in this case, servic-logic innovation can lead to improve customer's satisfaction which can lead to customer's loyalty. I think that service logic innovation can be used for high quality products or medium quality products but not for cheap products, the real innovation would be the creation of cheap individual, customized products where service logic concept, can be in thas case,really innovative.
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Re: [Question 1] Service-logic innovation
by Naomi_Karnovsky Mon Oct 26, 2009 11:17 pm
I remember that in one of the first lessons I had in Marketing, the professor asked us to read a paper from 1975 called "Marketing myopia", by Theodore Levitt. What the author (at least how I see it) was trying to say is that one of the biggest reasons for failure in growing and succeeding is that many companies only focus on their own specific product, when they should be looking at how customers' needs are changing, at how marketing practices are evolving and at what kind of product developments there are in competing or even complementary industries.
I think that although this paper is from 1975, in also has the same basic point - the customer has to be put in the center, not the product. So it seems to me that the concept of service-logic innvation isn't very new, but I do think the paper gives a new, more modern perspective to that idea.
I think that although this paper is from 1975, in also has the same basic point - the customer has to be put in the center, not the product. So it seems to me that the concept of service-logic innvation isn't very new, but I do think the paper gives a new, more modern perspective to that idea.
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Differentiation and service-logic innovation... not the same!
by taniapaola_gutierrez Mon Oct 26, 2009 11:56 pm
BartekWu wrote:I don't really agree with that. I think that this is simply a new and more sophisticated way of making product differentiation. Of course in order to gain market position and conquer it, to attract and convince consumers you have to be innovative. But what is the difference between product and service? For me Service IS a part of the product. And if someone finds a new way to approach me and say "this is better, try this", it is just marketing.
It seems to me that it is a more or less linguistic discussion, whether or not oyu call something service, logic, product or something combined.
According to differentiation and service-logic innovation there is a difference depending on the perspective and how the strategy is applied. In marketing, product differentiation is the process of distinguishing the differences of a product or offering from others, to make it more attractive to a target market, and this way to have a competitive advantage in the market. This is done in order to distinguish a product and make it unique among others in the market and give a sense of value perceived by the consumer.
Some of the ways of differentiation are: Differences in quality, differences in price, differences in functional features or design, sales promotion activities like advertising, and differences in availability.
Also is important to take in account that a successful product differentiation strategy will move a product from competing based on price to compete on non-price factors like product distribution strategy, promotional variables and services.
Product differentiation is basically concentrated in making changes in the product features and image, the tangible aspects. Unlike, service-logic innovation is directly related to the distribution strategy and services that a firm can offer linked to its product to make it more attractive for consumers to buy it. The clue in this issue is to find a real innovative feature and apply it to create an impact in the product, because there might be same products or similar products in the market, but the success will depend on how service-logic innovation strategy is applied.
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Re: [Question 1] Service-logic innovation
by BartekWu Tue Oct 27, 2009 5:44 am
florent_lefevre wrote:Service part of the product ? I am not sure... Let's say you want to buy a mattress. You find two options: One seller is okay to sell it to you at 500 USD, the other one at 600 USD. It is more or less the same quality and in both cases, you'll have a mattress. However, seller B gives you the opportunity to bring it back and have your money back if you are not satisfied with the product. You sure can have the product and no service, but service does make the difference.
Exactly - that is what you are paying for extra - service which is part of the product. It is impossible to disconnect the. You get for what you pay. The extra 100 goes for guarantee. and again, it is a way to differentiate product. Some people need that option, others - don't. Personally I don't think I ever had to use it.
This is all a question of semantics, service/product/extras etc. all in all - you get for what you pay!
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Re: [Question 1] Service-logic innovation
by BartekWu Tue Oct 27, 2009 5:54 am
...
Some of the ways of differentiation are: Differences in quality, differences in price, differences in functional features or design, sales promotion activities like advertising, and differences in availability.
...
Product differentiation is basically concentrated in making changes in the product features and image, the tangible aspects. Unlike, service-logic innovation is directly related to the distribution strategy and services that a firm can offer linked to its product to make it more attractive for consumers to buy it. The clue in this issue is to find a real innovative feature and apply it to create an impact in the product, because there might be same products or similar products in the market, but the success will depend on how service-logic innovation strategy is applied.[/quote]
I will be stubborn and still claim that it is still the same thing but under a different name. you mentioned some types of differentiation, but let's not forget that this list is not CLOSED! times change, companies develops, so do buyers and their expectations. We are now more product conscience, we are able to search all kind of information on the web about products and producers are aware of that. They know that we use internet more and more, we are lazy and we don't trust commercials and marketing as we used to. Thus new way of making a connection with a client - service logic innovation. They want to be different from their competition. And they should do that!
Besides, service-logic differentiation - this does not sound that bad, does it?
Some of the ways of differentiation are: Differences in quality, differences in price, differences in functional features or design, sales promotion activities like advertising, and differences in availability.
...
Product differentiation is basically concentrated in making changes in the product features and image, the tangible aspects. Unlike, service-logic innovation is directly related to the distribution strategy and services that a firm can offer linked to its product to make it more attractive for consumers to buy it. The clue in this issue is to find a real innovative feature and apply it to create an impact in the product, because there might be same products or similar products in the market, but the success will depend on how service-logic innovation strategy is applied.[/quote]
I will be stubborn and still claim that it is still the same thing but under a different name. you mentioned some types of differentiation, but let's not forget that this list is not CLOSED! times change, companies develops, so do buyers and their expectations. We are now more product conscience, we are able to search all kind of information on the web about products and producers are aware of that. They know that we use internet more and more, we are lazy and we don't trust commercials and marketing as we used to. Thus new way of making a connection with a client - service logic innovation. They want to be different from their competition. And they should do that!
Besides, service-logic differentiation - this does not sound that bad, does it?
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Re: [Question 1] Service-logic innovation
by shirleyo Tue Oct 27, 2009 10:16 am
BartekWu wrote:...
Some of the ways of differentiation are: Differences in quality, differences in price, differences in functional features or design, sales promotion activities like advertising, and differences in availability.
...
Product differentiation is basically concentrated in making changes in the product features and image, the tangible aspects. Unlike, service-logic innovation is directly related to the distribution strategy and services that a firm can offer linked to its product to make it more attractive for consumers to buy it. The clue in this issue is to find a real innovative feature and apply it to create an impact in the product, because there might be same products or similar products in the market, but the success will depend on how service-logic innovation strategy is applied.
I will be stubborn and still claim that it is still the same thing but under a different name. you mentioned some types of differentiation, but let's not forget that this list is not CLOSED! times change, companies develops, so do buyers and their expectations. We are now more product conscience, we are able to search all kind of information on the web about products and producers are aware of that. They know that we use internet more and more, we are lazy and we don't trust commercials and marketing as we used to. Thus new way of making a connection with a client - service logic innovation. They want to be different from their competition. And they should do that!
Besides, service-logic differentiation - this does not sound that bad, does it?
[/quote]I agree with Bartek. And Naomi, I think you are well-put.
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Similar topics» [Question 5] Service-logic innovation risks
» [Question 3] Service-logic innovations cases
» [Question 2] Internal service-logic implementation
» [Case Summary] Service-Logic Innovations: How to Innovate Customers, Not Products
» [Question 4] Inside Out vs. Outside In
» [Question 3] Service-logic innovations cases
» [Question 2] Internal service-logic implementation
» [Case Summary] Service-Logic Innovations: How to Innovate Customers, Not Products
» [Question 4] Inside Out vs. Outside In
E-Commerce Forum :: Online Forum IV (2009/10/28) - Topic: Service-Logic Innovations: How to Innovate Customers, Not Products
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