Service-logic innovation

“All innovation, whether a service process or a tangible product, should be viewed as a service-logic innovation. This challenge to traditional, attribute based views of innovation stems from the understanding that any innovation (or change) in product or process requires changes in customer thinking, participation, and capabilities to create and realize value. Altering value as it is defined and used by the customer, not value in production and exchange, defines innovation.” ….
“The service-logic perspective is based on the recognition that innovative new products enable customers to find new ways to service their personal needs, or as Clayton Christensen has argued, “when people find themselves needing to get a job done, they essentially hire products to do that job for them.” After all, customers do not seek products; they seek satisfaction. Products thus represent vehicles for service, because they enable customers to productively pursue their individualized satisfaction. Thus, we consider the designations of “products” and “services” limiting and instead refer to both, individually and collectively, as offerings.”

Michel, S., Brown, S. W., & Gallan, A. S. (2008). Service-logic innovations: How to innovate customers, not products. California Management Review, 50(3), 49–65.

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