ISIM: An integrated design method for commercializing service innovation

Abstract

Service innovation is focused on customer value creation. At its core, customer centric service innovation is technology-enabled, human-centered, and process-oriented. To profit from such innovation, firms need an integrated cross-disciplinary, holistic method to design and commercialize service innovation. From diverse but interrelated strands of theories from service science, strategic management, organization science and information systems literatures, this article develops a new integrated design method, known as iSIM (integrated Service Innovation Method), for simultaneous service innovation and business model design for sustained customer value co-creation with the firm. Following design science research method, the article theoretically defines and integrates iSIM's seven constitutive design process-elements: service strategy, customer type / value proposition, service concept, service system, customer experience, service architecture and monetization into a coherent and end-to-end aligned integrated design method. It explains how iSIM would be holistically and iteratively practiced by practitioners, and conceptually exemplifies its utility via telco and Amazon case studies using secondary data. Perspectives on iSIM from selected practitioners are discussed which confirm iSIM's potential utility for their business. Managerial implications of implementing the iSIM and potential areas for further research are also discussed.