Customer-Oriented Service Innovation Grounded in Data-Driven Decision-Making: A Readiness Assessment Framework

Abstract

In the current increasingly competitive and technologically advanced market, significant opportunities to develop service innovations can be realized by utilizing data-driven decision-making (DDDM), which has been widely recognized as an effective means of making decisions that are more informed and based on evidence. Service innovation (SI) grounded in DDDM, or data-driven service innovation (DDSI), refers to integrating data-driven thinking or simply the use of data into the SI development process. However, the large variety of data available for organizational use creates pressure to achieve the capabilities necessary to obtain high-quality and time-sensitive data from internal and external sources, while also organizing and analyzing it properly. These capabilities present a particularly significant challenge for many firms seeking growth by triggering customer-oriented SI. Hence, firms must systematically evaluate the maturity level of their capabilities, enabling effective customer-oriented SI grounded in DDDM. This study sought to establish an approach to assess a firm’s readiness to implement customer-oriented DDSI and to explore the capabilities imperative for its implementation. Based on a theoretical analysis, a readiness assessment framework for customer-oriented DDSI was conceptualized by adopting a process view and utilizing the Business Process Maturity Model (BPMM) for the maturity assessment of the key capabilities identified, including DDDM. With a well-established framework, this study proposes a practical guide for firms looking to implement a customer-oriented SI grounded in DDDM.

Keywords: Customer, Oriented Service Innovation, Data, Driven Decision, Making, Service Innovation Readiness, Capability Maturity Model

DOI: 10.54941/ahfe1003896