How an Open Services Model Uncovers New Opportunities for Innovation

Companies with an eye for the future are turning their focus to the emerging field of open service innovation. Too often, when we think of a service process, we think of what the provider must do, but such thinking results in frustration for the customer – who will defect in an instant. When we think of service processes, think of the customer as a co‐producer of value.

Think of migrating from transaction chains to information chains, and then on to knowledge chains (or peer‐to‐peer knowledge webs to be more precise). By taking service process management into the cloud, services from multiple knowledge sources can be delivered with maximum flexibility and adaptability to meet the requirement that most services must be customized to meet customer requirements.

An excellent example cited in this article is Intuit, a UK small business accounting software provider, seems to have figured out a way to benefit from open innovation and social media. Rather than inviting the whole world, Intuit funnels only diehard users of QuickBooks to a site where they can exchange truly helpful information. For customers, that means quicker answers to problems. For the company, this volunteer army means less need for paid technicians.

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