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Archetypes of Service Innovation: Implications for Value Concreation

According to the article in the Journal of Service Research “Archetypes of Service Innovation: Implications for Value Concreation”, knowing and understanding of archetypes of service innovation is quite useful for the fuller knowledge integration.

Researchers propose a typology of four theoretical archetypes of service innovation — output based, process based, experiential, and systemic.

Output based archetype — successful service innovation, that can be conceptualized.

A process-based archetype applies to any change in the service creation process that influences the emergence of value-in-use, including competences, skills, practices, or behaviors of a firm’s employees or customers.

Here we can discuss the role of customer participation in process-based service innovation. For instance, Matthing, and Kristensson concluded that ordinary users are often more innovative than employees in generating ideas for new service offerings.

And a high level of customer participation may increase customer satisfaction through the creation of economic and relational value.

Experiental — value through experience — subjective experience and sensemaking in the customer’s own social context determine what is considered a service innovation. For example, while one customer may experience the new service process as convenient, exciting, easy, or simply new, another may find it difficult or unpleasant.

The systemic archetype — ecosystem. Is informed by a holistic belief that the whole is more than the sum of the parts and that something is lost when focusing on separate parts.

To relate it with our business, let’s take La Classe as an example.

La Classe — hospitality training center in Monaco.

Output based archetype : La Classe offers a broad range of exclusive and innovative training services based on “savoir-faire monégasque”, ethnic psychology and human diversities that leads to the new level of intuition and individualization of service.

The focus is on contemporary classic finesse of service.

Process based archetype : The customer process includes convenient assistance, such as possibility of video recording of the training. La Classe offers customers confidentiality, unparalleled personalized approach and flexible payment conditions. Some trainings can be delivered online and have no analogs in the world.

Experiental based archetype : The La Classe customer experience combines luxury and excellent presentation, evaluation and following up free of charge. La Classe offers customers training services with well-trained, customer-oriented professional tutors from the upper-class society to give the right sense of convenient experience and feed-back.

Systematic based archetype : La Classe is known as an eco-friendly and giving a different service and approache ecosystem for well-known luxury brands and individuals. The constant interaction between company and the management team is an important element.

As illustrated, service innovations may and should encompass multiple archetypes. Archetypes differ in their ontological assumptions, prompting different kinds of questions and understandings of service innovation and value concreation.

At La Classe, the service innovation initiative focused first on improving the efficiency of internal service in the organisation. However, the company’s success could also be characterized in terms of other archetypes; with unique service quality and availability, customers benefited from a brand-new researches and overall experience; increased utilization of new developments in emotional intelligence led to higher output.

The authors of the article insist that a better understanding of combinations of archetypes and their application to different areas of business is also likely to identify new avenues for service innovation practice.

For example, the output-based archetype (new service offerings) becomes relevant when an organization needs to express its performance in terms of service offerings.

Output-based measures are important both for the organization itself and for most of the engaged actors, including customers, partners, and authorities.

The process-based archetype is important for value concretion where the goal is to create a new process or to improve the quality, efficiency, or effectiveness of an existing service process.

Clearly, customers tend to be more willing to pay for something they experience as valuable.

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