Service Innovation in the Digital Age

By Seshachari, October 4, 2016


In  the technology-enabled virtual enterprise, business agility depends on IT Strategy, innovation and operations agility. To attune in real time to instable requirements, organizations have to automate maximum on their operational tasks and sharpen its focus on delivering critical business services.

Creating a digital service innovation is the way forward to get out of the break down silos, streamline workflow, and create a centralized environment where the business can leverage service delivery knowledge for maximum value. Value driven service innovation provides new or better services motivated by value creation for all parties, the enterprise, customers and partners and it’s based on the organization’s innovation potential and realized through the management innovation ability.

Maximizing the value is only realized if the firm has the ability to deliver the required service in the pertinent way at the right price for all enterprise, customers, and partners. Also the organization should have an adequate capacity of resources to succeed. Technology plays a vital role in new services introduction: the organization has to focus on questions to deliver new services i.e. Do we have the right technology in place to improve our service system? Do we have the right technology in place to improve our customer experiences? How integrated is our strategy across digital and physical channels?

The organization requires the innovation to deliver new services through relevant customer experiences, all delivered by a relevant service system. Any service innovation comprises of three simple levels, driven by the value created – 1. Innovation capacity: the potential for innovation 2. Innovation ability: the practice of innovation and 3. Innovation outcomes: the result of innovation.

Enterprises have to focus on questions to be asked to promote service innovation: What are the possible futures for your market sector? Who are all future customers? What do they want of their customer experience tomorrow? How will you provide the necessary service systems? How will you make the new business model create value for all? How will you innovate to achieve success? Do you have the required innovation capacity? Do you have the required innovation ability? And, do you have an innovation process for creating new value?

Service innovation is technology enabled, but is also human centered and process oriented. To be successful, an organization has to align strategy and operations end to end – service, to business strategy, to business model, to customer needs; and have a framework for design practices – customer processes to assure superior customer experience (value in use), and to balance innovation in order for an emergent service (rising star) to cannibalize the organization’s mature services (cash cow).

Example – Netflix

Netflix has expanded globally at breakneck speed and now operates in 190 countries. Its total content budget for 2016 is $5 billion. Netflix has overcome obstacles like broadband speed in territories like India, as well as getting studios comfortable with licensing content on a global basis.

Social media handled – Twitter, Instagram, Youtube (, Facebook (, Google+ (+Netflix), Tumblr (, and Pinterest (

In 2016, Netflix’s barrage of new content will increase to 600 hours of planned programming–or more than one new show or movie a week, Subscriber numbers have steadily grown to over 75 million.

Inspired by BI NBS publications & self-experience.

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Results-driven business leader with 25 years of deep experience focused on Revenue and Profitability - P/L management, sales, presales, demand generation, lateral growth transformational programs, global delivery, quality assurance, optimization of the overall customer satisfaction score -CSAT Currently responsible for India Business Unit (IBU), develop a business plan that anticipates changes, opportunities, and ensures profitability, strengthen alliances and build & drive teams with key business partners and customers to ensure all planned targets are achieved. Presales -Leadership at Bids & Proposal effectiveness, Crafting winning strategy to win New deals and sustaining existing customers and improve overall pre-sales effectiveness of the organization. Have led & setup global delivery engine, managing large team setups, client delight focus across all our operating geographies- leading the operational turnaround of the company by working on cost optimization & sustainable Delivery Platform in Products and Services business. Non-linear growth - Have led the organization in the area of Product engineering using BPM, SOA, and ESB by driving the roadmap for the next generation of IP led solution accelerators and differentiators to the organization. Have led QA/MR Defined, implemented, managed and achieved CMMI L5 1.3 Version process certification by partnering with KPMG. Provides leadership to the KM teams that have created key enablers, productivity accelerators and differentiators to the organization. Prior to BCT, Chari has worked at Tech Mahindra, Xoriant, 3i infotech, & TVS Group.

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