Innovation that matter: Sorry but, put every effort to make a cool product, is NOT enough.Services as means to transform its business into more sustainable, profitable business platform.
Companies that are making cool products must think beyond the product to turn it into a sustainable, profitable business platform. In a product exchange, products are a means to a desired end rather the end itself. After the product exchange takes place, the product provider’s job is done. It is then the customer’s responsibility to use that products to reach the desired end. In a service exchange, the service provider’s task is not finished until the customer’s need is fulfilled.
Companies that are making cool products must think beyond the product to turn it into a sustainable, profitable business platform. In a product exchange, products are a means to a desired end rather the end itself. After the product exchange takes place, the product provider’s job is done. It is then the customer’s responsibility to use that products to reach the desired end. In a service exchange, the service provider’s task is not finished until the customer’s need is fulfilled.
Customers often desire to have their needs fulfilled not only initially but over a series of interactions with their provider. This shift requires companies now to think about the lifetime value of their customers across many transactions. It then stimulates them to learn more about their customers so that their knowledge of their customer’s needs also grows over time. It can even motivate companies to craft more customized or personalized solutions for their customers, driving up satisfaction, reducing customer switching to competitors, and capturing more value form more satisfied customers
Source from the book "Open Service Innovation:Rethiniking your busienss to grow and compete in a new era" written by Henry Chesbrough, UC Berkeley professor.
