Why – need of innovation
CHANGE. . .The only thing in this world that is CONSTANT!
The aim of starting the paper with this quote is to make understand the importance of innovation. Innovation brings change. Innovation means “to do something new or in a different way”. Service excellence means “to exceed the expectations of customer, to give him/her better quality of service”. In service industry, where organizations directly interact with customers, innovation becomes very important. If organizations provide same kind of service over a long period of time, then either customers will move on to a different service provider to get change or they will start availing services less. This is true in every service industry whether it is as vital as medical service or as optional as call center service. Innovation is not only important from the point of view of customers but also from the point service provider’s view also. Continuous innovation is evolutionary process. As soon as innovation stops, service also becomes out of date.
Fig 1 - Innovation Continuous process
From Customer’s perspective
In this era, when customers are empowered and are the central focus for marketing activities, every marketing strategy is designed and implemented keeping in mind customers. Happy and satisfied customer is the mantra for success of any product. Also, customers needs changes constantly, so service providers have to change accordingly otherwise they will be out of market. Innovation is necessary from customer’s point of view because - •
Same kind of service becomes monotonous -
Human gets bored with monotonocity. To avoid monotonocity service providers has to change their offerings continuously. Take the example of theme parks, if they will provide same kind of environment every time, then customers will not go there again and again but if they continuously improve their service, implement new ideas etc. then customers will go there again and again because every time they will get new experience. •
Service changes with changing market, technology etc. – Take the example of software industry. If it would not have innovated then we would have not got automated software or that would have been in old age languages like BASIC etc. which would have not been sophisticated and also would take longer time in any work. Also, we would not have internet etc. •
Lowers rate and increases quality -
Innovation and continuous improvement in process brings newer ways to accomplish things, makes services cheaper and increases quality. Take the example of medical services, where innovation has change the whole scene. Now, medical services are better, safe and cheap. •
Saves time and energy -
Use of new technology saves time and energy also. Take the example of banks. Internet banking, ATM’s, credit, debit card etc. has made money transactions easier and faster on one hand and safer on other hand because now customers don’t have to worry about carrying cash etc. Service industry provides services but if it is same without any new creativity or change than you are giving chance to your competitor to win your customers. Customers avail services because of need and providing bare service or with minimum augmentation or without any new offerings can give them only “no dissatisfaction” reason to stay, i.e. they are availing your service just because they need and their need is satisfied but they are not satisfied, like in case of medical services, but will not avail if it is not his/her need, like theme parks. Without innovation, customers will not be dissatisfied but they will not be satisfied because they are not getting benefits of innovation. They will move to new service provider who along with service provides them some new offering every time which gives customers “satisfaction” reason that is reason to stay. Therefore, continuous innovation not only gives your customers reason to stay but also attract competitor’s customers by giving...
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