Outcome-based solutions can come in many shapes and sizes, but they’re all products that are conceived to deliver a better service. These added services can be ranked by increasing added value such as better performance, higher convenience, increased experience, and services that transcend this and create new business models or disrupt existing ones. These outcome-based services can be ranked somehow in increasing added value, following the above order. Our research showed there are 5 distinctive types of services. So how do you rank them? And how to rank in increasing added value perception?
Outcome-based innovation value canvas
If you haven’t read our previous blog yet where we look into 5 examples of outcome-based innovation, make sure to do so first. When we map these examples on the following parameters: added functionalities, performance optimization, convenience, experience, market disruption potential on the characteristics of the services added, they each show a particular profile or value canvas (see figure below).
When trying to evaluate ideas and derive strategic insights on how to create more value, a maturity-like categorization comes in very useful. We used 5 different strategies each graded in 3 levels in ascending order as a methodology. This resulted in the following structure.
Enhanced functionality services
- L1 – Services that focus on adding functionality to the product, enhancing its capabilities beyond the baseline features of the product.
- L2 – Monitoring & control: services that offer control over product functions and performance.
- L3 – Insights: more advanced services that provide actionable insights for the user based on performance data.
Performance optimization services
- L1 – Services that aim to optimize the product’s performance, ensuring it operates at its highest potential, resulting in improved functionality and reliability. They hence can be sent as services that offer minor improvements in product performance.
- L2 – Operational enhancement: services that enhance the overall operational efficiency of the product.
- L3 – Performance optimization: advanced services that significantly improve product performance, availability, lifespan, or even deliver prescriptive advice
- L1 – Standard convenience: services that offer basic convenience enhancements.
- L2 – Efficiency enhancement: services that focus on improving the efficiency of product-related processes.
- L3 – Seamless convenience: high-value services that create a seamless, effortless user experience taking the hassle out of the operator’s hands.
- L1 – Enhanced experience: services that add some level of enhancement to the user experience.
- L2 – Immersive experience: services that create immersive and enjoyable user interactions.
- L3 – Delightful experience: high-value services that aim to delight users through unique experiences often multisensory.
(Autonomous) disruptive services:
- L1 – Increased autonomy: services that introduce autonomy to the product so it can operate without an operator or user, yet doesn’t disrupt the market.
- L2 – Transformation: services that bring about a significant market transformation through automation.
- L3 – Disruption: high-value services that disrupt existing markets and create new ones through advanced automation.
A practical framework to drive outcome-based innovation
The framework presented is not just a theoretical concept but a practical tool that can drive change. It empowers innovators and R&D professionals to make strategic decisions that align with customer needs and market dynamics to become better at innovation. By categorizing ideas into levels and offering the ability to rank these by increasing added value, you can pave the way for more successful and impactful innovations.
The pursuit of new outcome-based values is a dynamic and evolving process. Your customers and end users are looking for solutions that not only meet their needs but also exceed their current expectations, whether it’s in terms of performance, convenience, experiences, or disruption. To harness the potential of this framework, we encourage you to explore our Innovation Day.
Innovative solutions reshape industries, enhance user experiences, and create lasting value. We look forward to being a part of your innovation journey and helping you achieve success through outcome-based innovation. Don’t hesitate to reach out, ask questions, and connect with our experts. Together, we can unlock a world of possibilities and drive meaningful change in the realm of product and service innovation.