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Strategic Differentiation

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In Chapter 2, Strategic Differentiation (40 pages), the author explores one of the two basic approaches to service leadership: creating strategic differentiation. This approach is focused on the creation of innovative service offerings. Chang defines core and supplemental service elements and how services have a life cycle, much like products. He reviews methods for idea generation and provides an in-depth look at the "DeepThink" approach. He explains how to achieve success by using DeepThink within a virtual team structure. He considers key issues in determining which ideas to pursue, such as financial viability and marketplace success, and outlines a stage-gate process to address the five main issues in service innovation. He looks at the importance of customer satisfaction and retaining learning from the innovation process. He describes the responsibilities of service enterprise leaders and concludes with practical insight for managers. The chapter includes two appendices for implementing a DeepThink methodology and one appendix on evaluating financial viability.
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