Innovation in Experiential Services

A report from London Business School

"Service innovation has proved an elusive area for many reasons, including the intangibility of services, the heterogeneity of services, much innovation being of processes rather than products and the lack of an identifiable R&D function. Much research has focused on services where products can clearly be defined (for example financial services), and where technology is being used to change the nature of the service or the business. However, as Salter and Tether (2006) have pointed out, there is an emerging research stream which addresses the particular nature of services such as intangibility, dependence on people and high levels of interaction rather than technologies.

This report examines innovation in experiential services. These are services where the focus is on the experience of the customer when interacting with the organisation, rather than just the functional benefits following from the products and services delivered.

The report is based on a continuing research programme on experiential services at London Business School. In particular it draws on a recent case-based study of eight design agencies and consultancies and nine successful experiential service providers. The report addresses the question of how do experiential service providers innovate, in particular the content of innovation and the process of innovation including organisation for innovation. Studying innovation in experiential services facilitates wider reflection on the subject of service innovation."

Download the report here.....

(via Design For Service)