Market Innovations in Services

and Business
Section B | Group 1
 Designing Innovative Services Begins with
Four Questions
• Out of the many different jobs that our customers are trying to get done, which offer
the ripest opportunities for service innovation?
Various considerations will make some of these jobs better targets for services than others.
• If we mapped out the job the customer is trying to get done, where would we see the
biggest points of inconvenience, frustration, and poor results? 
A series of defined steps, beginning with consideration of purchase options and extending to after-sale
communications or returns.
• What is our customer’s experience of doing business with us, and what aspects of it
could be better? 
Analysing this consumption chain will suggest innovations in your service delivery.
• As a seller of products, what services could we also provide to help customers get
their jobs done well?
Thinking expansively about the job the customer was hiring a product or service to do, and the full
experience of consumption can provide more avenues for innovation.
 Turn Customer Input Into Innovation
• Most companies these days strive to be customer focused in their innovation thinking. But they seek input from
their customers the wrong way. They’ll ask their customers what they want; customers then offer solutions, which
is not their job. The R&D team of the company has to find solutions.
• To be successful at innovation, companies should focus on the jobs that customers are trying to get done. They
should ask the customers for outcomes – what they want the product or service to do for them. This is the
essence of the Outcome-Driven Innovation Theory.
How to focus on Outcomes:
• Step 1: Plan outcome based customer interviews - Companies works with customers to deconstruct a job or
activity to unearth the “customers’ needs” or “outcomes.
• Step 2: Capture desired outcomes – Involves differentiating between solutions and outcomes, eliminating vague
statements, anecdotes and irrelevant comments.
• Step 3: Organize the outcomes – Make a comprehensive list of outcomes by removing duplicates.
• Step 4: Rate outcomes for importance and satisfaction – Customers are asked to rank the outcomes in order of
importance and the degree to which they are satisfied by existing products. The ratings are fed into a
mathematical formula called ‘opportunity algorithm’ to understand the attractiveness of each opportunity.
• Step 5: Use the outcomes to jump-start innovation - Uncover opportunity areas for product development, market
segmentation and better competitive analysis.
 PayPal
• PayPal electronic payments system was launched in 1999.
• PayPal announced a partnership with MasterCard, which led to the development and launch of the PayPal Secure
Card service, a software that allows customers to make payments on websites that do not accept PayPal directly.
• PayPal made the radical move to open up its system to third-party developers and allow them to integrate its
payment system into their web sites, mobile apps, and devices.
• PayPal announced that it would begin moving its business offline so that customers can make payments via PayPal
in stores
• PayPal launched their peer-to-peer payment platform "PayPal.Me", a service that allows users to send a custom
link to request funds via text, email, or other messaging platforms
• On October 21, 2020, PayPal announced a new service allowing customers to use cryptocurrencies to shop at 26
million merchants on the network starting in 2021