Abercrombie & Fitch, 48
Active customers, 21–22
Amazon, 36, 37, 93
Antiphon, 144
Bank offerings, 128
Bee Urban, 44
Behavioral innovation, 50, 51, 97–99
Brand innovation, 46–47, 51, 93–95
Business model innovation, 51
business canvas, 153–154
business model change, 154–155
capital-intensive machine selling, 152–153
cost-plus pricing view, 152
internet, 95–96
organization’s external/internal environment changes, 48–49
physical product selling, 152
pricing paradoxes, 153
Caterpillar, 35, 131
Center pivot irrigation systems, 107–108
Cisco company, 129, 131
Coca-Cola company, 22
Cocreation. See Customer involvement
Collaborative economy, 51–52
Context, 13
CRM systems, 82
Cummins Engine, 131
Customer, 7–9
Customer experience
business experience, 5
exchange process, 7
experience-promoting service, 4–5
gardening activities, 12–13
previous experiences and expectations, 13
service continuum, 5–7
social interaction, 12
value creation, 9
Customer involvement
customer selection, 105
development process, 104
early involvement, 105–106
ethnographic studies
air travelers experiences, 117, 119–121
in-depth qualitative research, 117–118
mobile phone usage, 118–119
factors facilitating, 121–123
lead users
center pivot irrigation systems, 107–109
Eric von Hippel’s research, 109–112
financial trading business, 109
health-care service, 115–116
knowledge and skills, 112–113
online trading software company, 116
open source software, 109
problem-solving skills, 106–107
products and service improvement, 110–111
service development, 114
telephone communication company, 113
value-creation and potential solutions, 114–115
operational prototype, 103–104
satisfaction surveys, 104
service user information and knowledge, 104
telecommunication services, 104–105
travel industry, 105
Customer-oriented service activities, 70–71
Design thinking innovation, 148
Do-it-yourself (DIY) seminars, 38
Effectuation innovation, 148
Electrolux, 131
EMC, 129
Entrepreneurial innovation process, 146, 150
Ericsson, 9, 49, 90, 123, 129, 131
Eric von Hippel’s research, 109–112
Ethnographic studies
air travelers experiences, 117, 119–121
in-depth qualitative research, 117–118
mobile phone usage, 118–119
Experience innovation, 47–48, 51, 96–97
Facebook, 17, 31
Focus–understand–build model
build phase
orchestrate phase, 87–90
standardize phase, 90–91
test phase, 90
focus step, 83–84
understand phase
involving customers, 85
learning, 85–87
Ford, 17
Formal service innovation process, 80
French bank, 123
GE aircraft, 39, 49, 129, 131, 132
Goods, 3
Goods-centric firms
business model
business canvas, 153–154
business model change, 154–155
capital-intensive machine selling, 152–153
cost-plus pricing view, 152
physical product selling, 152
pricing paradoxes, 153
offerings as services, 129
products offerings, 128
service innovation
components needed, 144
development and market introduction, 150–152
development process, 145–146
market validation, 146–150
network, 144
service infusion (see Service infusion)
technology, 145
Goods innovation, 25–27
Google, 31, 96
Gross domestic product (GDP), 1
IBM, 17, 36, 49, 89, 90, 129, 131, 160
Ikea, 25, 31, 41, 46, 48, 94, 95
Incremental innovation, 41
Incremental service innovation, 80–81
Indirect service, 4
innovation
Innovative customers, 22
Inside-out approach, 25–26
Instagram, 17
Intangibility, heterogeneity, Inseparability, Perishability (IHIP) criteria, 10–11
ISS, 142
Lancôme and Estée Lauder, 143
Lean start-up innovation, 147
Löfberg, 40–41
Market-driven service innovation, 59
Market validation, 146–147
customer collaboration, 149–150
design thinking innovation, 148, 149
effectuation innovation, 148, 149
entrepreneurial innovation, 146, 150
lean start-up innovation, 147–149
McDonald’s, 31
Metro, 23, 24, 41, 49
Microsoft, 134–135, 143
Minimum viable product (MVP), 147
Nintendo, 96
Off2off company, 24
Open innovation, 160
Outside-in approach, 26
Philips, 17
Process innovation, 24, 45–46, 51, 93
Product, 1
Radical innovation, 24–25, 41, 81–82
Recombinative innovation, 41
RelayRides, 44
Research methods
customer information strategy, 63, 64
focus groups and questionnaires, 63, 64
group dynamics, 64–65
in-depth interviews, 65, 67
internet-based system, 65–66
proactive methods, 68
Samsung, 143
Scania, 35
Self-service, 45–46
Service, 1
classification perspective, 9
direct service, 3
IHIP model, 9–11
indirect service, 4
resources, 13–15
value-creation perspective, 11
Service continuum, 6
Service infusion
brand development, 143–144
competing offers differentiation, 129–130
competitive advantage, 130
customer service strategy
advanced service offers, 141
development partner, 142
outsourcing partner, 142
firm’s service strategy
external factors, 139
internal factors, 139
offering and value, 140
organizational challenge, 129
process
firm revenue, 136–137
goods and service-centricity, 134
new offering deployment, 138
organization and accounting system, 136
package offering, 138
phase innovation, 138–139
productivity gains, 135–136
resources and skills, 135
service identification, 137–138
service pricing, 135
standardized service solutions, 139
service provision, 130
technological innovation
cleaning firm, 133–134
customer value, 131–132
goods logic, 133
installed base, 131
physical product, 132–133
purchasing cost, 131
services supporting product and customer, 132
technical characteristics changes, 132–133
value creation, 130
Western firms, 129
Service innovation. See also Value-creation process
active customers, 21–22
behavioral innovation, 50, 51, 97–99
branding, 19
brand innovation, 46–47, 93–95
business model innovations, 48–49, 95–96
categories of, 51
change process, 38
cocreated service, 17–18
cocreation experience, 19
collaborative economy, 51–52
customer active paradigm, 39–40
customer and user research, 82
customer communication, 81
customer involvement (see Customer involvement)
customer needs identification, 20–21, 162
customer role changing, 38
design thinking, 161
development process
design thinking, 82
focus-understand-build model (see Focus–understand–build model)
Stage-Gate® approach, 82, 83
development time, 161
experience business, 37
experience innovation, 47–48, 96–97
formal service innovation process, 80
goods-centric firms (see Goods-centric firms)
vs. goods innovation, 25–27
implementation, 91–92, 161
incremental development, 80–81
incremental innovation, 41
innovative customers, 22
more innovative, 81
new business models, 39
online and social service, 18
perspective of, 35
process innovation, 24, 45–46, 93
radical innovation, 24–25, 41, 81–82
recombinative innovation, 41
service experience, 36–37
service platforms, 37–38
short messaging service, 80
smiling service worker, 36
social innovations, 48, 96
tabloid newspapers, 23–24
value chain breaking, 39
Service logic, 160–161
Skanska, 39
SKF, 75, 129, 131, 138, 139
Skype, 17, 25
Snapchat, 17, 25
Social innovations, 48, 51, 96
Sony, 143
Southwest Air, 31
Spotify, 17
Starbucks, 31, 37, 43
Swedish company SK, 75
Technological innovation
cleaning firm, 133–134
customer value, 131–132
goods logic, 133
installed base, 131
physical product, 132–133
purchasing cost, 131
services supporting product and customer, 132
technical characteristics changes, 132–133
Technology push, 25–26
TeliaSonera, 123
Tetra Pak, 21, 131, 133, 138, 139
Traditional innovation processes, 25–26
Tribune Company, 24, 40, 150
Uddeholm, 97
Value-creation process, 160–161. See also Service innovation
customer orientation, 70–71
customer-oriented companies, 73–75
customers experience, 14–15
digital cameras vs. built-in cameras, 56
fancy acronyms/technical jargon, 58
fast-food milk shakes, 56
habitual patterns breaking, 71–73
laboratory/internal development process, 60
market competence, 68–70
market-driven service innovation, 59
market structure, 16
product details, 57–58
product offerings, 15
research methods
customer information strategy, 63, 64
focus groups and questionnaires, 63, 64
group dynamics, 64–65
in-depth interviews, 65, 67
internet-based system, 65–66
proactive methods, 68
service logic, 32–34
stickiness, 58
user activities, 12
user interview methodology, 58–59
user needs and product development
customer information, 62
outward–inward paradigm, 62
sticky information, 61–62
for teenagers, 60–61
user research, 58
Volvo, 9, 35, 49, 72, 85, 87, 91, 129, 131, 141, 160
Whirlpool, 123
YouTube, 17