October 5, 2006

Why is nobody teaching people about service innovation?

If 80% or more of the GNP in the US and the EU comes from services, then why is it that there are only a handful of business schools offering courses in service innovation? And why aren't more service companies prototyping? And perhaps best of all, why are so many companies looking at innovating customer "transactions" instead of the whole "customer journey?"

Those were some of the questions raised by Jeneanne Ray from Peer Insight during her story-telling time at the Business Innovation Factory conference this week in Providence.

Come to think of it, even most product companies, who are familiar with product innovation, and with developing partnerships where needed to create "whole products," are too often forgetting what the "whole customer journey" or experience looks like - from product selection, to purchase, to unpacking, to post purchase customer support.

Apple could be the exception. From selection, to purchasing, to unpacking the experience is a true delight - elegant and powerful in its simplicity. They may be falling short in the post purchase support area as they demonstrated with their arrogance around the early iPod battery problems, or as they are demonstrating with a friend of mine who lost access to her hard drive while it was under warranty - offering only to rebuild the hard drive without offering any data recovery services and yet promising an almost 100% guarantee that all data would be lost.

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