Barras (1986, 1990) argues that service innovation involving IT involves three phases he called the Reverse Product Cycle (RPC). The phases are: Improved Efficiency, Improved Quality, and New Services.
IT was first introduced to improve existing processes, and only later became the basis for service product innovation, reversing the “product cycle” model of manufacturing innovation popularized by Abernathy and Utterback (1978). For technologically sophisticated service sectors like financial services these phases roughly transpose to the 1970s, 1980s, and 1990s. So, "insurance services moved from computerization of policy records, to providing online policy quotations, and then to supplying complete online services during these three decades" (Miles, 2011, p. 440).
Miles says about the banking industry:
Service innovations in banking include new service products (such as new types of bank accounts more closely tailored to the circumstances of individual clients) and delivery innovations (e.g. online banking and cash machines). Innovation has also been introduced in other customer-facing functions, for example in targeted marketing and in computer-assisted helplines, etc.
References
Miles, I. (2006). Innovation in services [Electronic Version]. The Oxford handbook of innovation, 433—458. http://www.oxfordhandbooks.com/oso/public/content/oho_business/9780199286805/toc.html.
IT was first introduced to improve existing processes, and only later became the basis for service product innovation, reversing the “product cycle” model of manufacturing innovation popularized by Abernathy and Utterback (1978). For technologically sophisticated service sectors like financial services these phases roughly transpose to the 1970s, 1980s, and 1990s. So, "insurance services moved from computerization of policy records, to providing online policy quotations, and then to supplying complete online services during these three decades" (Miles, 2011, p. 440).
Miles says about the banking industry:
"Uchupalanan (1998, 2000) mounted a systematic critique of the RPC approach, tracing the history of five IT innovations through all firms in the banking services sector in Thailand. He uncovered a diverse range of innovation strategies and trajectories that were far richer than the RPC account. The banks were influenced by the strategies of competitors with respect to each given innovation, by their experiences with earlier innovations (and their plans for others), and by pressures from regulators and the market. The interrelation of market competition, firm circumstances and innovation dynamics meant that the RPC “story” of innovation processes was rarely applicable in this context. At best it was one of a number of possible patterns of development" (p. 441).The RPC approach is often used in service innovation analysis even though it clearly does not explain all service innovation. For instance, it completely neglects non-IT innovations, but it does at least provide a framework which enables the recognition and legitimation of service innovation and its study and development as a field worthy of more attention.
Service innovations in banking include new service products (such as new types of bank accounts more closely tailored to the circumstances of individual clients) and delivery innovations (e.g. online banking and cash machines). Innovation has also been introduced in other customer-facing functions, for example in targeted marketing and in computer-assisted helplines, etc.
References
Miles, I. (2006). Innovation in services [Electronic Version]. The Oxford handbook of innovation, 433—458. http://www.oxfordhandbooks.com/oso/public/content/oho_business/9780199286805/toc.html.
No comments:
Post a Comment