Products,+Services,+and+Experiences

=Core Concepts - Products, Services, and Experiences= Wednesday January 18, 2011 <>

Topic overview:
Today's class will offer an introduction to some key concepts in innovative product development. Specifically, we will look at how an innovative idea can be captured as a product, a service, an experience, or some combination of the three. We will also consider how changing the way in which something is offered for sale can create innovative, breakthrough business opportunities (for example, turning something often purchased as a product into a service, or a mundane service into a compelling and unique experience).

By the end of class today, you should:
 * Be able to articulate the differences, and relationships between:
 * a product
 * a service
 * an experience
 * Understand that a new business opportunity can take any of these three forms

Preparation for class:
Read "10 Clues to Opportunity" by Donald Sull on Booz&Co's strategy+business journal: @http://www.strategy-business.com/article/11304 (free registration required).

Research an innovative product, service, or experience involving transportation for people. This can be a recent innovation or a historical example. Come prepared to discuss what it is, why it was/is innovative, how successful it is/was, and what we can learn from the example. You do not need to post this example to the wiki. Just come prepared to discuss it in class.

Finally, complete the pre-class exercise described below and post your results to the wiki.

Reference materials:
Slides:

Pre-class exercise:
Think of a product or service category with which you are familiar. Name and briefly describe it, state whether the example you've given is primarily a product or service offering. Then provide brief examples of how you could (or how somebody already does) offer similar things as products, services, and experiences (you only need to give examples for the two types of offerings that differ from your original example). No two people may select the same type of example so post early!

You need to post your example to the wiki before 9am on the day of class.

[Bob Monroe] Example: Pizza Product -- sold as a frozen food item in a box in the grocery store's freezer. The customer purchases the pizza and cooks it herself in her own oven. Service -- a pizza restaurant takes orders for pizza by phone and delivers a hot, ready-to-eat pizza to your home. Experience -- Wolfgang Puck (a famous chef) sells expensive, gourmet pizzas with unusual ingredients in a fancy restaurant. The offering is not just the tasty pizza, it is also the experience of going out to a beautiful place and dining with others.

[Bob Monroe] Example: Music performance Product -- Black-Eyed Peas CD containing multiple songs by the musicians, can be replayed repeatedly in the customer's CD player Service -- last.fm streaming service that sends the music to the customer over the internet to their smartphone or computer on demand Experience -- Black-Eyed Peas concert where you can see the band perform the music live.

[Fatema Akbar] Example: Books Product -- Buying a book from a book store Service -- Amazon.com updating the user about new books, selling and delivering books Experience -- going to a book publishing event, discussing a book with other readers in a book club

[Ushna Amer] Example: Gaming Product: DOTA 2 distributed via CDs but mostly purchased and downloaded online by players Service: online game platforms (example: steam) that make purchasing and downloading games available in addition to automated updates- fixes, DLCs and patches etc. These also provide community features. Experience: Gaming competitions or tournaments held locally or worldwide via online gaming (example: DOTA 2 - The International, grand prize of $1,000,000)