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Service Excellence by Ruth N. Bolton

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CHAPTER 6

Customer-Focused Innovation

Organizations are keenly interested in innovation as a source of organic growth and profitability. For this reason, they are adopting new approaches to identifying opportunities for innovation in business models, processes, and products. A variety of approaches are helpful for developing radical (i.e., large-scale) innovations, incremental innovations, and improvements. However, there are many challenges facing service organizations: the unique characteristics of the customer experience (intangibility, heterogeneity, simultaneity of production and consumption, perishability), changes in the business landscape that create new opportunities for service (advances in technology, new media), and the changing nature ...

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