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Monday, November 1, 2010

Creating a Winning Service Offering

The evolution of the mobile phone into a media channel contrasts two different approaches to service creation namely service creation based on technology push or based on what the market wants. Is it possible to know what the market wants? Is being the first to market most important or should mistakes from competitors be learnt before service launch.

The 3-Dimensions of service creation
Mobile media applications are different from media in more established formats like TV and radio. Launching new services like video telephony, messaging services has always posed some challenges. Initial users are likely to see minimal value in the new technology. Interestingly though it does seem like users have a leading creativity edge over the service designers as they often find different ways of using a new services in ways other than those it was created to perform. Because of this mobile telephony technology is used in different ways than it was originally intended for. SMS was originally not created to enable chatting, flatting, making mobile payments or goal service updates. A key challenge when launching media services with the mobile phone as a channel is that telecom technology, and the digital distribution standards it’s based on, is still immature. The implication of this, is that there both opportunities and risks with the handling of integration of emerging and evolving technology enablers.

The translation, identification, and satisfaction of user needs with creative service offerings that meet their demands offers another challenge to service creation. Adding to this demand has to be met at the appropriate price and market timing too. A good service creation methodology has to be able to drive and evolve technology based on an efficient translation of user demands into technology requirements.

Over time the mobile device plays an increasingly important role as media channel. However the user experience is increasingly built as sensations are created and shared across many media namely TV, the mobile network or the Internet. Hence the convergence aspect is important, as is building access that is seamless the user.

Building market access channels becomes an integrated part of service creating. When leveraging the mobile as a media channel, new constellations of media and access providers have to be realized to create a winning service offering. How to build the market channel access for emerging opportunities based on both the successful translation of customer needs and the integration of technology enablers is explored in the last cornerstone of the three-dimensional service creation model. These dimensions are not mutually exclusive – rather, a new service should maximize as many as possible of these three dimensions. However as the challenges and risks are somewhat different, it is worthwhile breaking down and analyzing the service creation in these three dimensions to optimize the service offering.

In my next post on the subject matter I will discuss the creation of services based on the integration of technology enablers.


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