Market Innovations in

Services and Business

Presentation By: Group 1
Article Summary
Aastha Tulsyan (190201002)
Akshay Sharma (190201011)
Ritvik Jaiminy (190201081)
Sakshi Shah (190201089)
Samyak Jain (190201092)
Shubham Gupta (190201102)
Utsav Sharma (190201120)
 Service Innovation – A Service-Dominant Logic Perspective
 Main theme of the article is to provide a broader conceptualization of service and how IT capabilities can help in bringing about service
innovation.

 G-D Logic (Goods Dominant): Reflects production of tangible goods using division of labour, separating factory from customers and
standardizing and controlling the production process.

 S-D logic (Service Dominant): Focuses on serving rather than output of physical goods. It is based on:
• Reconceptualization of Service
• Reconceptualising Resources
• Reconceptualising Exchange
• Reconceptualising Value

 4 Meta-Theoretical Foundations of S-D Logic:

• Actor-to actor networks
• Resource Liquefaction
• Resource Density
• Resource Integration

 Broadened view of Service Innovations: It is the application of specialized knowledge and skills through deeds, processes
performances, for the benefit of another entity or the entity itself, by separating information from physical matter and improving its
density.

 This broadened view of service innovation can be understood through 3 elements:

• Service Ecosystems
• Service Platforms
 Service Business Model Innovation
The key stages of service business model innovation are service paradigm, concept development, prototyping, implementation, and
evaluation.
 Stage one - Service paradigm, i.e. changing the traditional mind-set from offering innovative service to focus on service innovation and
value creation
• Focus should be on value creation rather than adding a category of market offerings
• The focus should be on value through the lens of the customer
 Stage two: Concept development, i.e., applying the new service mind-set and building a framework for diagnosing service business
model
• A hypothetical new service business model is constructed by identifying and developing specific structure and components of service
business model i.e., value proposition, scope of offerings, resources and capabilities, revenue and growth models, and competitive
strategies
 Stage three: Prototyping, i.e., developing criteria for generating service business model innovation
• Evaluates the fundamental economic principles
• Integrates unique service attributes and relevant technologies into the design of a service business model.
• Identifies and capitalizes on the disruptive attributes of emerging technologies to enable new service design for value creation
• Conducts experiments for new business models on a regular basis to identify more promising direction and results
 Stage four: Execution, i.e. identifying opportunities and utilizing resources for implementing service business model innovation
• Build and leverage competences and capabilities to manage service business model innovation
• Innovate new methods for generating revenues (e.g., new pricing models) and implement new structure and redefine the boundary of
the enterprise to capture the value of business model innovation
 Stage five: Assessment and evaluation, i.e., assessing the milestones and benefits gained from implementing service business model
innovations, as wells as generating managerial (and policy) implications
• Identify the strengths, shortcomings, resources, capabilities, and options for future business model innovation.
• Assess and evaluate major milestones and overall performance of the new business model.
• Develop corrective actions for control and performance.
4 Types of Innovations and the
Problems they Solve
-Greg Satell
Breakthrough Sustaining New Market Disruptive

A large, discrete step Existing product

change in
performance, Incremental value gain
technology and value
provided to users. E.g.,
over existing solutions
available to users. E.g.,
Apple. Iphone5
sustaining products are
all about milking the
Difficulties: breakthrough product
(a benefit leadership
strategy) by extending
1. Lack of resources
2. Lack of laser-like
its life cycle as long as
it can go.
focus necessary to
achieve a breakthrough
Breakthrough products
can’t survive without
3. Lack of a detailed sustaining products
understanding of the
end user
behind the,
Profitability maximized
4. Lack of required
technical competencies
Simple, Easy to use
applied in a new way
product intended at the
for previously
masses at a much lower
unrelated customers
e.g., iPod to iPhone. cost. E.g., iPod shuffle. 4 Types of
Introduce your product
and educate the
customers
Disruptive Innovation =
Simple, Low Cost
Innovations
Make slight
modifications to the
Solution to Your
Customer’s Problem and the
product to better suit
the new use case or
application. Consideration while
Strategic
coming with disruptive
The strategy behind
new market
innovation:
1. Look for competitors
choices each
innovations can fall on
either cost leadership
or benefit leadership
that have overserved their
customers to the point
where the solution is far
one represents
more advanced (and
expensive) than it needs to
Considerations while be in order to accomplish
exploring new markets: the main job to be done

Pathway:
Sustaining efforts:
1, Adjacent spaces – what
industries or uses would
for that product.
2. Focus on one job to be
done rather than several
- Jake Nielson
1. Access to resources you consider as adjacent?
1. Feature 2. Other jobs to be done: 3. Focus on making the
2. Laser like focus
fixes/additions What other jobs does solution the very best
3. A detailed your product do? Could when it comes to doing
understanding of the 2. Cost reductions that one thing for your
those be marketed for
end user 3. Product line other customers? customers
4. The right technical expansions 3. Customer usage studies 4. Remove as much cost as
competencies (proliferation)  – for some products, possible to make the end
customers may already be price affordable for most
using your product in new users
and different ways that 5. Observe the industry
you haven’t considered trends regarding vertical
yet integration