1. How would you characterize B of A’s new system for developing new services? Focus on its process, organization, management and culture.
B of A’s new system is more of a process/service innovation rather than a more Paradigm Innovation. They are not trying to achieve big leaps in terms of innovation. They are committed to improving innovation and willing to learn from mistakes.
Service innovations usually require less R&D, require less in fixed assets, and need less investment on patents and licenses for the development of new services.
Technology is important but not the critical factor or component for the development in new service as many times the face-to-face relationship building component becomes more important. Because less of a financial and technological commitment is needed for service than manufacturing innovation, service innovation can be easier to imitate.
Some of the competing firms tend to duplicate services offered by their competitors. But products are hard to duplicate as it involves patents and licenses. However, it is not as easy as it may appear to imitate a competitor’s service innovation. Though capital investment may be low, organizational aspects play a larger role in the success of service innovation.
Also it does not matter if it is a product or a service which is being developed, as long as the process of innovation from conceptualization of ideas, planning, design and implementation is followed.
3. What is the role of experimentation? How can companies maximize their learning from experimentation?