Process is the Product

Ed Furash, a well-know bank consultant, was quoted by a banker I interviewed in my NSD research as saying "In financial services process is the product."

One of the problems with applying NPD models and ideas developed for goods firms to NSD may be that NPD has typically differentiated between product innovation and process innovation.

When automation allows a washing machine to be built in 2 hours rather than over two shifts, quality or price may ultimately be impacted. When online tools allow a mortgage to be granted in one hour rather than one week, the service itself has been dramatically changed.

Those of us interested in service innovation must take a more holistic approach and view innovation in a broader context.

Business Model Innovation is Intrinsic

Helder Sebastiao, professor of entrepreneurship at the University of San Diego, sent me a note yesterday in which he noted that a central theme through the postings in newservicecreation is that in service innovation, unlike NPD-goods, "business model innovation is intrinsic".

It may be that the key difference between service innovation and traditional NPD-goods is that service innovation is more holistic:

1. Process is the product
2. Business model innovation is intrinsic.

Your thoughts??????????

by Alexander Osterwalder, arvetica, Guadelajara, Mexico.

This is a very useful presentation on how you can innovate your own business model.

Slides 29 - 51 describes the core methodology!

[slideshare id=53517&doc=management20-competitive-advantage-through-business-model-design-innovation-14836&w=425]

An interview with Alexander Osterwalder.

Click here if you do not see the presentation above.

Another presentation, containing the business model of Amazon.com:

[slideshare id=141782&doc=describe-and-improve-your-business-model-1193048778204895-2&w=425]

More on Business Strategy:

• 10 Favorite Books on Business Strategy
• Favorite books on Management Consultancy - LinkedIn Question
• Business Model Innovation
• Alignment: ‘everybody needs to understand the value of their role’
• Summary of the article ‘Partnering and the Balanced Scorecard’ by Robert Kaplan
• Strategy articles in the Harvard Business School website

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This is a great book, telling you a story

You will understand how to apply Change Management in your own business situation when you have read it!

• Reviews on Amazon.com
• Kotter's book 'Heart of Change' is mentioned by manager-tools.com as one of their favorite books
• Our Iceberg is Melting site - contains some other great videos!
• Site of John Kotter
• John Kotter on How Change Is Changing
• Leading Change: Why Transformation Efforts Fail (full HBR article)

The eight steps for change!

1. Establish a Sense of Urgency
2. Form a Powerful Guiding Coalition
3. Create a Vision
4. Communicate the Vision
5. Empower Others to Act on the Vision
6. Plan for and Create Short-Term Wins
7. Consolidate Improvements and Produce Still More Change
8. Institutionalize New Approaches

Video

What other tools can help you with Change Management programs:

• Improve Communication skills that you can use in Change Management projects
• Improve Collaboration in large professional companies
• Visual thinking solves your business problems
• The Skilled Facilitator
• The Innovator’s Solution’: best book on innovation
• The Meeting Introduction

Business Strategy and Change Management:

• Setting up Business Strategy
• Favorite Books on Business Strategy (of LinkedIn users)
  
• Favorite books on Management Consultancy (of LinkedIn users)
  
• Business Model Innovation
• Alignment: ‘everybody needs to understand the value of their role’
• Summary of the article ‘Partnering and the Balanced Scorecard’ by Robert Kaplan
• Strategy articles in the Harvard Business School website

Other resources on Change Management:

• Another 'Change Iceberg' - not related to the work of John Kotter; but useful!
• Change management forum (12manage.com)
  
• The McKinsey Quarterly, the business journal of McKinsey & Company - on Change Management

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Do you have experiences and ideas on Change Management? Please feel free to use the comment field below!

MileMeter has the right ingredients to succeed, first the concept, then the green aspect that will give them the viral publicity, and choosing the IT infrastructure that fits their biz model.

If only Chris Gay and his team opensource some of the AWS building block code, it will further increase their operating efficiency and earn them lot more good will.