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Zaheer Travadi - IBM General Business Geo Expansion
Mar 03, 2012




 2012 Towards Smater Services




Views presented here are individual and may not be endorsed by IBM
IIM -UDAIPUR 2012
Smarter Services




Agenda




           1.          Conversation Starter
           2.          4Is
           3.          D4D
           4.          I2I
           5.          R=G; n=1
           6.          TMTCu Ver.2




2        3 March 2012     IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Why have Services become Predominant?
                                                                    Need for trade
                                                                    in services

                                                                    Complexity

                                                                    Specialization
                                                                    Productivity




3        3 March 2012   IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Economy has reached a New Era



     A SMARTER PLANET
                                                                                            PEOPLE
                         INSTRUMENTED
                                                                                            COMPANIES, INSTITUTIONS, INDUSTRIES
                         INTERCONNECTED
                                                                                            MAN-MADE SYSTEMS
                         INTELLIGENT
                                                                                            NATURE’S SYSTEMS




                                                                 Network Ubiquity
                                                        More than a billion Internet users today
                                                                  Open Standards
                                                Widely-adopted technical and transaction specifications
                                                               New Business Designs
                                                          Horizontally-integrated operations



                                                                      +           +
4        3 March 2012   IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




The Nature of Innovation is Changing




                         Business Models                                        Science
                                &                                                  &
                           Processes                                          Technology




                                                                    People
                                                                      &
                                                                    Culture



                           The marketplace requires innovation that combines
                                people, technology and business value
5        3 March 2012   IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Enterprise Pressures & Opportunities



           commoditization pressures                                  CEOs: Extent of fundamental
                                                                    change needed over next two years
           new/increased competition

                                                                                   Moderate
           global market opportunities
                                                                                      22%

        adjacent market opportunities                                     A lot
                                                                                      Little or no
                                                                          65%
                                                                                          13%
           global volatility & disruption

          competing business models


                                                                                                     IBM Global CEO Study 2006


6        3 March 2012   IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




It’s time to take advantage of…



                           smart objects

         the connectedness of everything

             supercomputing for everyone

                   information put to work

               collaboration & co-creation

             the marketplace for expertise

                       the virtual corporation


7        3 March 2012      IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




It’s time to innovate

                                                                               CEOs’ View:
                                                                         Primary Responsibility for
                                                                          Innovation Leadership
                           products

                           services
                                                                          27%
                  business processes                                   No Owner                35%
                                                                                       CEOs/Leaders

                       business models
                                                                        14%
                                                                       Division
             management and culture                                     Mgrs        24%
                                                                                  Functional
                                                                                    Mgrs
                       policy and society


                                                                                                      IBM Global CEO Study 2006


8        3 March 2012      IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Agenda - 1



           - Conversation Starter

           1.          4Is – The 4 Is of Services
           2.          D4D
           3.          I2I
           4.          R=G; n=1

           - TMTCu Ver.2




9        3 March 2012      IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Goods Vs Services Innovation

              All the smart people in our field, work                We must collaborate with smart
              for us                                                 people outside & inside

              To profit from R&D we must discover,                   We need not originate research to
              develop & distribute                                   benefit

              We have get to market first to win if                  Building better business model more
              we innovate                                            important than first to market

              We must control our IP and clearly                     We can profit from others’ use of our
              define our Firm’s boundaries                           IP and benefit from theirs

              Learn by “using” & “doing”                             Learn continuously through
                                                                     Feedback loops and client linkages


                                   Consumer Insight              Consumer Experience


10    3 March 2012   IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Goods Vs Services Innovation




11    3 March 2012   IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Service Marketing




                                                                                     INTERFACE




                                                                 Courtesy: Fujitsu

12    3 March 2012   IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




T-shaped Adaptive Innovator
                                                                   Breadth




                                                                               Depth
             Social Science                                      Management            Engineering
                (People)                                          (Business)           (Technology)
13    3 March 2012   IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Agenda - 2



        - Conversation Starter

        1.          4Is
        2.          D4D – Design for Delight
        3.          I2I
        4.          R=G; n=1

        - TMTCu Ver.2




14    3 March 2012      IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Service User Experience Design – Honeycomb Model




                                                             Courtesy: Semantic Studios
15    3 March 2012   IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Services Blueprint




                                                                 Courtesy: Spire

16    3 March 2012   IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Democratization of Design


        Increasingly capable & cheaper tools that require less skill and training to use

        Make it easier for user-innovators to gain access to rich libraries of modifiable
        components that have been placed in the public domain

        –           Today users design sophisticated new products, services, music and art
        –           Open source software movement
        –           Web 2.0 explicitly recognizes users add value




17    3 March 2012      IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Agenda - 3



        - Conversation Starter

        1.          4Is
        2.          D4D
        3.          I2I – Idea to Implementation
        4.          R=G; n=1

        - TMTCu Ver.2




18    3 March 2012      IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Deciding on your Services Innovation


1. Check for Heuristic Affect – Has the team fallen in love with its proposal?

2. Check for Groupthink – How were the dissenting opinions in the team handled?

3. Check for Saliency Bias – could the diagnosis be overly influenced by an analogy?

4. Check for Confirmation Bias – Are credible alternatives proposed?

5. Check for Availability Bias – What if you had to make this decision later in time?

6. Check for Anchoring Bias – Do you know where the numbers came from?

7. Check for Halo Effect – Would a best practice replication be as successful?

8. Check for Sunk Cost Fallacy - Is the proposal based on a history of past decisions?


19    3 March 2012   IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Typology of Services Innovation



      Business model                                             Process/system             Asset
        innovation:                                                innovation:           innovation:

         Substantial                                               Changes in how        Introduction of
        organizational                                               information          entirely new
       changes in how                                            exchanged between    services as an Asset
     revenues and profits                                           customer and        (service product)
         are earned                                                service provider


                             In reality all 3 are interrelated as an iterative process




20    3 March 2012   IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Many efforts to transform services have often been hampered

                                                                                                  Service Innovation Barriers

                                                        Getting alignment across organizations                                                                73%
        Obstacles to Improving Customer Experience




                                                                        Implementing technology                                                   60%

                                                           Trying to change employee behavior                                                    57%
                                                     Defining our customer experience strategy                                             49%
                                                              Measuring customer experience                                                49%
                                                     Understanding the needs of our customers                                       38%
                                                     Designing usable interfaces for customers                                     35%
                                                                Gaining executive commitment                                 27%
                                                           Trying to change customer behavior                              23%
                                                               Identifying our target customers                      16%

                                                                                 None of the above            4%

                                                                                                         0%    10%   20%     30%   40%    50%    60%    70%     80%
          Source: Forrester Research                                                                                         % of Respondents

21    3 March 2012                                           IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Services Innovation Framework




“The Ten Types of Innovation” by Larry Keeley, Doblin Inc.

22    3 March 2012   IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




“Outside In” - Most Successful Areas for Services Innovation




23    3 March 2012   IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Approach to Services Innovation

                                                                     Venture
                                                                     Capitalists
                                                                                    ISVs      Business
                                                       IT Analysts
                                                                                              Partners
                                               Media                                                     Alumni



                                            Legal                                                     University &
                                                                                                      Academia
                                                                       Organization                  Thought Leaders
                                         Keystone
                                         Clients
                                                                                                  Community
                                                                                                  Relationships
                                               Investors
                                                                                              Country
                                                                                   Gov’t      General
                                                                      Standards
                                                                                   Programs   Managers
                                                                      Bodies




                                                                 Multi-disciplinary




     Globally Collaborative                                                                                            Open

24    3 March 2012   IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Agenda - 4



        - Conversation Starter

        1.          4Is
        2.          D4D
        3.          I2I
        4.          R=G; n=1 – Business Model Innovation

        - TMTCu Ver.2




25    3 March 2012     IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Business Model Innovation




26    3 March 2012   IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Assessing current and desired positions to create path

                                          Moving from current to target position
                                                                                                          • Are there ways to reconfigure / re-
                                                                                                           allocated sources of revenue in your
                                                                                                                        business?
                                                                     Revenue Model                        • How can you sell elements of your
                                                                                                             services / offerings differently?
                  • How can you leverage new /                        High                                 • How can you reconfigure value
                 emerging business models in your                                                             elements in your business?
                industries? From other industries?
            • How does new/emerging technology
                   change the parameters?
                                                                                                            • How can you select and leverage
             • Are you a leader of follower when it                                                          unique assets & capabilities in your
                   comes to industry change?                                                                  business that provide competitive
                                                                                                                       differentiation?
                                                                        Low                               • What should you do vs where should
                                                                                                              you partner for optimal value?

                                                    Current Position
                                                                          Target Position


                             Industry Model                                                  Enterprise Model
      Degree of Innovation                                 Timing of Innovation                           BMI Path

      • How does the degree of innovation relate           • Do you drive change in the industry, or is   • Which business model innovation paths
        to your industry? How will it change in the          it imposed on you? Lead vs follow?             are we / should you explore?
        future?                                                                                           • Which ones are most aligned with our
                                                           • What are the disruptive technologies or
      • Do you have the right balance?                       models emerging today?                         industry, capabilities, vision?

27    3 March 2012       IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




n=1; R=G



                                                                                      Well established Social Vision
             Consistent experience to all customers




                                                                                   Drive excellence through Lean business processes




                                                                                                                                                                         Collaboration to co-create value
                                                                                                                                                    Resources = Global
                                                                                                                                                                                             create
                                                               Engineered
                                                               Engineered
                                                               Experience
                                                               Experience




                                                                                                                                        workforce
                                                                                                                                       Integrated
                                                      N=1




                                                                                                         Open doors in to
                                                                                                        Large Opportunities

                                                                               Scalability                                     Niche



                                                                                           Technology Architecture
                                                                                                        Courtesy: CK Prahlad

28    3 March 2012                                          IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Agenda



        - Conversation Starter

        1.          4Is
        2.          D4D
        3.          I2I
        4.          R=G; n=1

        - TMTCu Ver.2 – Too Much To Confuse You!!




29    3 March 2012     IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Where does Six Sigma fall short in Services Innovation

Six Sigma Thinking                                               Customer-Experience Led Innovation

                                                                 1. Introduce variability when it creates
1. Eliminate variability (reductive)
                                                                    preference

2. Eliminate waste                                               2. Allow the customer to judge what is waste

3. Minimize cost                                                 3. Tolerate additional cost as when it creates a
                                                                    preference

4. Map processes                                                 4. Map customer journeys

5. Test hypotheses                                               5. Explore important questions to create new
                                                                    hypotheses
6. Rely on large numbers to create certainty
                                                                 6. Rely on numbers to uncover new possibilities

7. Use process capability as final arbiter for                   7. Use demonstrated customer behavior as the
   decision making                                                  final arbiter


30    3 March 2012   IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Are there “scale laws” of service innovation?
       Moore’s Law underlies much of the information technology and business capability growth over the last half century.
       Are there analogous “predictable capability doubling laws” that apply in the realm of services?

       It seems three improvement or learning curve laws that might be applicable in services:
          1. The more an activity is performed (time period doubling, demand doubling) the more opportunities there are to
              improve the process
          2. The better an activity can be measured (sensor deployment doubling, sensor precision doubling, relevant
              measurement variables doubling) and modeled the more opportunities there are to improve the process
          3. The more activities that depend on a common process (doubling potential demand points), the more likely
              investment can be raised to improve the process

     Example: Amazon’s Book Buying Recommendation Service Quality
     –The quality of the recommendations depends on accurate statistics – the more purchases made, the better the statistical estimates
     for recommendations

     Example: Call Centers Query-Response Productivity and Quality
     –The speed and quality of call center responses can be improved significantly given accurate statistics about the kinds and number
     of queries that are likely to be received.

     Example: New Service Offerings
     –The viability of new service offerings often depends on the scale (amount of demand) in adjacent market segments where service
     satisfaction is low enough to result in sufficient critical mass of defections to bootstrap the new offering.

     Example: Predictable Education Gains (Student Knowledge, Teacher Satisfaction)
     –If eLearning can be used to shift 20% of routine teacher activities into automation that can be covered in half the normal time,
     freeing up 10% of teacher time each year to innovate and add new content or exploratory activities to the curriculum, then each year
     students will be learning more and teachers will have time to try new things


31     3 March 2012     IIM-Udaipur 2012 Towards Smarter Services
Andragogy from IBM


     IBM Institute for Business Value
      – http://www.ibm.com/iibv


     IBM University
      – http://www.ibm.com/university


     IBM Services Science Management & Engineering
      – http://www.ibm.com/university/ssme


     IBM INNOV8 Game
      – http://www-01.ibm.com/software/solutions/soa/innov8/full.html

     IBM CityOne Game*
      – http://www.ibm.com/software/solutions/soa/innov8/cityone/index.jsp



32    3 March 2012   IIM-Udaipur 2012 Towards Smarter Services
Smarter Services




Thank you!




                                                                            Zaheer N Travadi
                                                                            IBM India General Business
                                                                            Manager - Geo Expansion


                                                                 Phone: 91-97404-00211
                                                                 E-mail: zaheer.travadi@in.ibm.com

33    3 March 2012   IIM-Udaipur 2012 Towards Smarter Services

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2012 towards smarter services

  • 1. Zaheer Travadi - IBM General Business Geo Expansion Mar 03, 2012 2012 Towards Smater Services Views presented here are individual and may not be endorsed by IBM IIM -UDAIPUR 2012
  • 2. Smarter Services Agenda 1. Conversation Starter 2. 4Is 3. D4D 4. I2I 5. R=G; n=1 6. TMTCu Ver.2 2 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 3. Smarter Services Why have Services become Predominant? Need for trade in services Complexity Specialization Productivity 3 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 4. Smarter Services Economy has reached a New Era A SMARTER PLANET PEOPLE INSTRUMENTED COMPANIES, INSTITUTIONS, INDUSTRIES INTERCONNECTED MAN-MADE SYSTEMS INTELLIGENT NATURE’S SYSTEMS Network Ubiquity More than a billion Internet users today Open Standards Widely-adopted technical and transaction specifications New Business Designs Horizontally-integrated operations + + 4 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 5. Smarter Services The Nature of Innovation is Changing Business Models Science & & Processes Technology People & Culture The marketplace requires innovation that combines people, technology and business value 5 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 6. Smarter Services Enterprise Pressures & Opportunities commoditization pressures CEOs: Extent of fundamental change needed over next two years new/increased competition Moderate global market opportunities 22% adjacent market opportunities A lot Little or no 65% 13% global volatility & disruption competing business models IBM Global CEO Study 2006 6 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 7. Smarter Services It’s time to take advantage of… smart objects the connectedness of everything supercomputing for everyone information put to work collaboration & co-creation the marketplace for expertise the virtual corporation 7 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 8. Smarter Services It’s time to innovate CEOs’ View: Primary Responsibility for Innovation Leadership products services 27% business processes No Owner 35% CEOs/Leaders business models 14% Division management and culture Mgrs 24% Functional Mgrs policy and society IBM Global CEO Study 2006 8 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 9. Smarter Services Agenda - 1 - Conversation Starter 1. 4Is – The 4 Is of Services 2. D4D 3. I2I 4. R=G; n=1 - TMTCu Ver.2 9 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 10. Smarter Services Goods Vs Services Innovation All the smart people in our field, work We must collaborate with smart for us people outside & inside To profit from R&D we must discover, We need not originate research to develop & distribute benefit We have get to market first to win if Building better business model more we innovate important than first to market We must control our IP and clearly We can profit from others’ use of our define our Firm’s boundaries IP and benefit from theirs Learn by “using” & “doing” Learn continuously through Feedback loops and client linkages Consumer Insight Consumer Experience 10 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 11. Smarter Services Goods Vs Services Innovation 11 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 12. Smarter Services Service Marketing INTERFACE Courtesy: Fujitsu 12 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 13. Smarter Services T-shaped Adaptive Innovator Breadth Depth Social Science Management Engineering (People) (Business) (Technology) 13 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 14. Smarter Services Agenda - 2 - Conversation Starter 1. 4Is 2. D4D – Design for Delight 3. I2I 4. R=G; n=1 - TMTCu Ver.2 14 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 15. Smarter Services Service User Experience Design – Honeycomb Model Courtesy: Semantic Studios 15 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 16. Smarter Services Services Blueprint Courtesy: Spire 16 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 17. Smarter Services Democratization of Design Increasingly capable & cheaper tools that require less skill and training to use Make it easier for user-innovators to gain access to rich libraries of modifiable components that have been placed in the public domain – Today users design sophisticated new products, services, music and art – Open source software movement – Web 2.0 explicitly recognizes users add value 17 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 18. Smarter Services Agenda - 3 - Conversation Starter 1. 4Is 2. D4D 3. I2I – Idea to Implementation 4. R=G; n=1 - TMTCu Ver.2 18 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 19. Smarter Services Deciding on your Services Innovation 1. Check for Heuristic Affect – Has the team fallen in love with its proposal? 2. Check for Groupthink – How were the dissenting opinions in the team handled? 3. Check for Saliency Bias – could the diagnosis be overly influenced by an analogy? 4. Check for Confirmation Bias – Are credible alternatives proposed? 5. Check for Availability Bias – What if you had to make this decision later in time? 6. Check for Anchoring Bias – Do you know where the numbers came from? 7. Check for Halo Effect – Would a best practice replication be as successful? 8. Check for Sunk Cost Fallacy - Is the proposal based on a history of past decisions? 19 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 20. Smarter Services Typology of Services Innovation Business model Process/system Asset innovation: innovation: innovation: Substantial Changes in how Introduction of organizational information entirely new changes in how exchanged between services as an Asset revenues and profits customer and (service product) are earned service provider In reality all 3 are interrelated as an iterative process 20 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 21. Smarter Services Many efforts to transform services have often been hampered Service Innovation Barriers Getting alignment across organizations 73% Obstacles to Improving Customer Experience Implementing technology 60% Trying to change employee behavior 57% Defining our customer experience strategy 49% Measuring customer experience 49% Understanding the needs of our customers 38% Designing usable interfaces for customers 35% Gaining executive commitment 27% Trying to change customer behavior 23% Identifying our target customers 16% None of the above 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% Source: Forrester Research % of Respondents 21 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 22. Smarter Services Services Innovation Framework “The Ten Types of Innovation” by Larry Keeley, Doblin Inc. 22 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 23. Smarter Services “Outside In” - Most Successful Areas for Services Innovation 23 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 24. Smarter Services Approach to Services Innovation Venture Capitalists ISVs Business IT Analysts Partners Media Alumni Legal University & Academia Organization Thought Leaders Keystone Clients Community Relationships Investors Country Gov’t General Standards Programs Managers Bodies Multi-disciplinary Globally Collaborative Open 24 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 25. Smarter Services Agenda - 4 - Conversation Starter 1. 4Is 2. D4D 3. I2I 4. R=G; n=1 – Business Model Innovation - TMTCu Ver.2 25 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 26. Smarter Services Business Model Innovation 26 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 27. Smarter Services Assessing current and desired positions to create path Moving from current to target position • Are there ways to reconfigure / re- allocated sources of revenue in your business? Revenue Model • How can you sell elements of your services / offerings differently? • How can you leverage new / High • How can you reconfigure value emerging business models in your elements in your business? industries? From other industries? • How does new/emerging technology change the parameters? • How can you select and leverage • Are you a leader of follower when it unique assets & capabilities in your comes to industry change? business that provide competitive differentiation? Low • What should you do vs where should you partner for optimal value? Current Position Target Position Industry Model Enterprise Model Degree of Innovation Timing of Innovation BMI Path • How does the degree of innovation relate • Do you drive change in the industry, or is • Which business model innovation paths to your industry? How will it change in the it imposed on you? Lead vs follow? are we / should you explore? future? • Which ones are most aligned with our • What are the disruptive technologies or • Do you have the right balance? models emerging today? industry, capabilities, vision? 27 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 28. Smarter Services n=1; R=G Well established Social Vision Consistent experience to all customers Drive excellence through Lean business processes Collaboration to co-create value Resources = Global create Engineered Engineered Experience Experience workforce Integrated N=1 Open doors in to Large Opportunities Scalability Niche Technology Architecture Courtesy: CK Prahlad 28 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 29. Smarter Services Agenda - Conversation Starter 1. 4Is 2. D4D 3. I2I 4. R=G; n=1 - TMTCu Ver.2 – Too Much To Confuse You!! 29 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 30. Smarter Services Where does Six Sigma fall short in Services Innovation Six Sigma Thinking Customer-Experience Led Innovation 1. Introduce variability when it creates 1. Eliminate variability (reductive) preference 2. Eliminate waste 2. Allow the customer to judge what is waste 3. Minimize cost 3. Tolerate additional cost as when it creates a preference 4. Map processes 4. Map customer journeys 5. Test hypotheses 5. Explore important questions to create new hypotheses 6. Rely on large numbers to create certainty 6. Rely on numbers to uncover new possibilities 7. Use process capability as final arbiter for 7. Use demonstrated customer behavior as the decision making final arbiter 30 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 31. Smarter Services Are there “scale laws” of service innovation? Moore’s Law underlies much of the information technology and business capability growth over the last half century. Are there analogous “predictable capability doubling laws” that apply in the realm of services? It seems three improvement or learning curve laws that might be applicable in services: 1. The more an activity is performed (time period doubling, demand doubling) the more opportunities there are to improve the process 2. The better an activity can be measured (sensor deployment doubling, sensor precision doubling, relevant measurement variables doubling) and modeled the more opportunities there are to improve the process 3. The more activities that depend on a common process (doubling potential demand points), the more likely investment can be raised to improve the process Example: Amazon’s Book Buying Recommendation Service Quality –The quality of the recommendations depends on accurate statistics – the more purchases made, the better the statistical estimates for recommendations Example: Call Centers Query-Response Productivity and Quality –The speed and quality of call center responses can be improved significantly given accurate statistics about the kinds and number of queries that are likely to be received. Example: New Service Offerings –The viability of new service offerings often depends on the scale (amount of demand) in adjacent market segments where service satisfaction is low enough to result in sufficient critical mass of defections to bootstrap the new offering. Example: Predictable Education Gains (Student Knowledge, Teacher Satisfaction) –If eLearning can be used to shift 20% of routine teacher activities into automation that can be covered in half the normal time, freeing up 10% of teacher time each year to innovate and add new content or exploratory activities to the curriculum, then each year students will be learning more and teachers will have time to try new things 31 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 32. Andragogy from IBM IBM Institute for Business Value – http://www.ibm.com/iibv IBM University – http://www.ibm.com/university IBM Services Science Management & Engineering – http://www.ibm.com/university/ssme IBM INNOV8 Game – http://www-01.ibm.com/software/solutions/soa/innov8/full.html IBM CityOne Game* – http://www.ibm.com/software/solutions/soa/innov8/cityone/index.jsp 32 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 33. Smarter Services Thank you! Zaheer N Travadi IBM India General Business Manager - Geo Expansion Phone: 91-97404-00211 E-mail: zaheer.travadi@in.ibm.com 33 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services