New business through service innovation

Similar documents
Insightful research and collaborative practice next steps

A Brief Introduction to the Multi-Level Perspective (MLP) T. Steward - November 2012

A system dynamic and multi-criteria evaluation of innovations in environmental services

Long-term dynamics between disruptive innovation and transformative innovation policy: Emergence and consolidation of mobility-as-a-service

Creating Successful Public Private Partnerships Examining External Success Factors

Co-evolutionary of technologies, institutions and business strategies for a low carbon future

Sustainable Development Education, Research and Innovation

Going with the Flow or Flowing with the Glow How Tampere Was Reinvented? Markku Sotarauta

Strategic Intelligence revisited GÖRAN MARKLUND DEPUTY DIRECTOR GENERAL

Final Report. MAASiFiE. Report Nr 1.2 May 2017

ServDes Service Design Proof of Concept

An institutional approach to socioecological. agency, structure and evolutionary political economy

Digitisation Plan

University as a Platform for Social Experimentation towards Sustainability Innovation

Enhancing industrial processes in the industry sector by the means of service design

Micro Dynamics of Knowledge - The role of KIBS in Cumulative and Combinatorial Knowledge Dynamics

Resource Integration as a Perspective on Value in Interaction Design

Transition strategies: a technological and industrial perspective

Pre-commercial procurement in robotics HORIZON ICT 27(d)

Assessment of Smart Machines and Manufacturing Competence Centre (SMACC) Scientific Advisory Board Site Visit April 2018.

The emerging perspective of Service Science for management and marketing studies: State of the art and research goals

Transport sector innovation and societal changes

Minister-President of the Flemish Government and Flemish Minister for Economy, Foreign Policy, Agriculture and Rural Policy

Committee on Development and Intellectual Property (CDIP)

Enacting Transformative Innovation Policy: A Comparative Study

System innovation for sustainable built environments

Sectoral Patterns of Technical Change

DRAFT. Workshop on Turning Qatar into a Competitive Knowledge- Based Economy. Organized by. Qatar Planning Council Qatar Foundation World Bank

SoberIT Software Business and Engineering Institute

Conclusions on the future of information and communication technologies research, innovation and infrastructures

BASED ECONOMIES. Nicholas S. Vonortas

CM Plenary session conclusion (M. Le Louarn, INFSO D5/DE sector)

acatech Industrie 4.0 Maturity Index Development of company-specific Industrie 4.0 roadmaps FIR e. V. an der RWTH Aachen

and R&D Strategies in Creative Service Industries: Online Games in Korea

TRANSFORMATION INTO A KNOWLEDGE-BASED ECONOMY: THE MALAYSIAN EXPERIENCE

Pacts for Europe 2020: Good Practices and Views from EU Cities and Regions

Brief to the. Senate Standing Committee on Social Affairs, Science and Technology. Dr. Eliot A. Phillipson President and CEO

DIGITAL FINLAND FRAMEWORK FRAMEWORK FOR TURNING DIGITAL TRANSFORMATION TO SOLUTIONS TO GRAND CHALLENGES

Policy Evaluation as if sustainable development really mattered: Rethinking evaluation in light of Europe s 2050 Agenda

Stakeholders Acting Together On the ethical impact assessment of Research and Innovation

Et Extension from an innovation systems perspective

)XWXUH FKDOOHQJHV IRU WKH WRXULVP VHFWRU

Torsti Loikkanen, Principal Scientist, Research Coordinator VTT Innovation Studies

Digital Transformation. The Challenge of Digitalization A How-To Guide. Copyright 2015 ScS Lüttgen All Rights reserved.

Managing Projects, Managing Knowledge

Horizon Scanning. Why & how to launch it in Lithuania? Prof. Dr. Rafael Popper

Government, an Actor in Innovation

Evidence-based Management of R&D Projects Intending Market Deployment

Exploring elements for a transformative biodiversity agenda post-2020

Colombia s Social Innovation Policy 1 July 15 th -2014

RIS3 as a tool for change. Alessandro Rainoldi JRC.IPTS 24 June 2013

IGF Policy Options for Connecting the Next Billion - A Synthesis -

Integrated Transformational and Open City Governance Rome May

Grand Challenges for Systems and Services Sciences

CO-CREATING SUSTAINABLE CITIES

STRATEGIC FRAMEWORK Updated August 2017

Horizon 2020 and CAP towards 2020

Cooperation and Control in Innovation Networks

Conclusions concerning various issues related to the development of the European Research Area

Sustainable Society Network+ Research Call

How can public and social innovation build a more inclusive economy?

STRATEGIC ACTIVITIES AND PRIORITIES

Measuring tomorrow s economy. which tools for measuring and analyzing circular and collaborative economies?

NBS2017 JPI WORKSHOP MAIN OUTPUTS OF THE WORLD CAFÉ DISCUSSIONS

Information Sociology

Enabling a Smarter World. Dr. Joao Schwarz da Silva DG INFSO European Commission

Сonceptual framework and toolbox for digital transformation of industry of the Eurasian Economic Union

WORKSHOP ON BASIC RESEARCH: POLICY RELEVANT DEFINITIONS AND MEASUREMENT ISSUES PAPER. Holmenkollen Park Hotel, Oslo, Norway October 2001

WHAT SMALL AND GROWING BUSINESSES NEED TO SCALE UP

punto org General Editor Luigi Maria Sicca

10246/10 EV/ek 1 DG C II

Industry 4.0: the new challenge for the Italian textile machinery industry

Written response to the public consultation on the European Commission Green Paper: From

EXECUTIVE TRAINING GOVERNING ENERGY TRANSITIONS

Challenge-led and participatory learning process to facilitate urban strategies for innovation on low carbon futures

INNOVATION SPACE FOR SUSTAINABILITY IN BUILT ENVIRONMENT

Information & Communication Technology Strategy

PROJECT FACT SHEET GREEK-GERMANY CO-FUNDED PROJECT. project proposal to the funding measure

Running head: ETHICS, TECHNOLOGY, SUSTAINABILITY AND SOCIAL ISSUES 1. Ethics, Technology, Sustainability and Social Issues in Business.

Elaborating the characteristics-based approach to service innovation: making the service process visible

Encouraging Economic Growth in the Digital Age A POLICY CHECKLIST FOR THE GLOBAL DIGITAL ECONOMY

Building an enterprise-centred innovation system

Design for Service Innovation & Development. Final Report

ENGINEERS, TECHNICIANS, ICT EXPERTS

Lecture 6: HCI, advanced course, Design rationale for HCI

Summary report: Innovation, Sciences and Economic Development Canada s roundtable on advanced robotics and intelligent automation

Coordination: Julia S. Guivant (Brazil, UFSC), Gert Spaargaren (Holand, Wageningen University) Period: April 2016/December 2017

What exactly is an information system? How are information systems transforming organizations and management?

Design Constructs for Integration of Collaborative ICT Applications in Innovation Management

Who cares about the future anyway? We all should!

Framework conditions, innovation policies and instruments: Lessons Learned

Scoping Paper for. Horizon 2020 work programme Societal Challenge 4: Smart, Green and Integrated Transport

DESIGN THINKING AND THE ENTERPRISE

Approaching Real-World Interdependence and Complexity

Industrie 4.0 in a Global Context

Evaluation report. Evaluated point Grade Comments

Compendium Overview. By John Hagel and John Seely Brown

Study on the Architecture of China s Innovation Network of Automotive Industrial Cluster

HELPING BIOECONOMY RESEARCH PROJECTS RAISE THEIR GAME

Arie Rip (University of Twente)*

Transcription:

New business through service innovation iarigai Helsinki 2015 Dr Marja Toivonen, Research Professor VTT Technical Research Centre of Finland

Thirty years of service research: some milestones Service economy (Gerschuny & Miles 1983) Service marketing (Grönroos 1982) Producer services, later called KIBS (Wood 1986) Servitization of manufacturing (Vandermerwe and Rada 1988) ICT and services (Barras 1986) Service innovation (Gallouj & Weinstein 1997) New Fifth Service level Development (Edvardsson 1997) Service engineering (Fähnrich 1999) Internationalization of services (Bryson & Daniels 1998) Service-Dominant Logic (Vargo & Lusch 2004) Service design (Saco & Goncalves 2008) Consumer experience (Caru & Cova 2007) Solution services (Davies & Brady 2000) Services productivity Djellal & Gallouj 2008) Social innovations (Harrison et al. 2010) Encounter-based innovation (Sörensen et al. 2013) Practice theories (Russo- Spena & Mele 2012) Business models (Nenonen & Storbacka 2010) Digitalization and services (Jung et al. 2014) 1980 s 1990 s 2000 s 2010 s 06/10/2015 2

Advancement of service innovation research 1) Service innovation as a change in offerings making the immaterial Fourth changes level visible 2) Service mindset a promoter of innovation irrespective of the nature of offering 3) Growing need for systemic innovations 06/10/2015 3

Service innovation as a change in offerings making the immaterial changes visible 06/10/2015 4

Modelling as a way to make service innovations visible There are two main schools in service innovation research: the marketing school and Second the actual level innovation school rooted in general innovation studies (within the evolutionary Third economics level and sociology in the first place). Both schools have started the research into service innovation by modelling a service in order to recognize innovative changes in an offering whose basic nature is immaterial. Both schools highlight that innovative outcomes can emerge in many ways in services: as an improvement or recombination of existing elements or as an addition of new elements. A well-known model is on the division concept-process-resources. 06/10/2015 5

Modelling a service offering UNIQUE OUTCOME PERCEIVED BY THE CUSTOMER the perspective of the customer and actual service provision PREREQUISITES UNIQUE PROCESS WHERE THE CUSTOMER PARTICIPATES SERVICE CONCEPT Analysis of the customer s needs and the ways in which they are met; the content and structure of the service SERVICE RESOURCES Staff, physical/ technical environment, organizational structure; customers as a resource SERVICE PROCESS Prototype of customer processes, describes the chain of activities the perspective of the service provider and service innovation Source: Edvardsson, 1997 06/10/2015 6

Service mindset a promoter of innovation irrespective of the nature of offering 06/10/2015 7

The perspective of value co-creation The traditional manufacturing paradigm has considered value in terms of value-inexchange and neglected its interaction with the value-in-use. The so-called service(-dominant) logic (Vargo and Lusch, 2004; Grönroos, 2010) suggests Third that even level more important than innovations in individual services is to develop service mindset Fourth that level appreciates customers and users as co-creators of value. The central argument of this view is that value is not inherent in goods or services but becomes realized only when goods or services are used. In the use context, the customer adds value to an individual good or service acquired from one provider by linking it to other resources acquired from other sources. This view enables innovation in business models. Instead of a chain from production to distribution, a business model describes collaboration with customers and partners, and the development of the provider s own resources on that basis. 06/10/2015 8

What is different compared to the traditional model 1) Use value is understood as co-created with customers. It cannot be first produced and Second then sold. level Correspondingly, customers are not targets but resources. 2) The focus in Fourth the production level of goods or services is on assisting customers to benefit from these goods or services (facilitating their value creation process). 3) Customers are not related to as isolated entities but their needs and wants are analyzed as deeply rooted in the context of their own networks. 4) Instead of focusing one-sidedly on the resources that a firm has, the way of using resources is highlighted. 5) Effectiveness is seen as an important prerequisite for the scale efficiency. 06/10/2015 9

New stage of digitalization as a service issue Machine-to-machine communication and the multiplying Click to masses edit Master of data text (Big Data) stylesare the essential characteristic of the ongoing stage of digitalization. The focus is no more on the development of the ICT sector, but on Fifth the level change in overall way of communicating. A crucial issue is the smartness in connecting actors and data in factories, traffic, buildings etc. The new stage of digitalization makes service mind set as an essential part of the business and economic infrastructure. 06/10/2015 10

Sharing the value an issue of trust Besides the clients, the emerging values have to be analyzed from the perspective of other stakeholders: Click to edit suppliers, Master partners, text styles investors/ shareholders, Second employees, level and society at a broader scale. It is important to be aware of the possibility of contradictory end results: the value created for one stakeholder group may mean destroying or neglecting the value of the other. Finding a balance in the multi-perspective framework is essential and trust is its essential prerequisite. An issue emerges: at which level can the trust be built and how? Palomäki et al. (2014), modified from Bocken et al., 2013; Evans et al., 2013 06/10/2015 11

Growing need for systemic innovations 06/10/2015 12

From individual products and services to systemic solutions Many social, economic, and environmental challenges are too big to be solved via individual product Third level and service innovations created in individual organizations. A crucial question isfifth how level to combine various innovations effectively and disseminate them rapidly on the basis of continuous interaction of different organizations. Examining and developing innovations at the systemic level has come to the fore. Examples of important service systems are healthcare systems, traffic systems (and broader city innovations), and energy systems. 06/10/2015 13

Systemic innovations In systemic innovations, the novelty also includes not only a new outcome but also new ways to interact with other stakeholders. A system innovation is based on the simultaneous development of organizations, technologies, services, and multiple network and partner relationships. Systemic problems cannot be identified directly. They manifest themselves in various practical problems that have to be analysed in order to understand the underlying dynamic complexities. Interaction between conceptual and practical levels is required. 06/10/2015 14

Solving systemic problems 06/10/2015 15

Dynamic complexities due to the nature of systems as: tightly coupled and governed by feedback: decisions of the actors trigger others to act, which again alters the next decisions of the original actors non-linear Third and level history-dependent: effect is rarely proportional to cause and taking one path precludes many others constantly changing and self-organizing : small, random perturbations are often amplified by feedback adaptive: capabilities of actors change over time as a result of learning counter-intuitive: cause and effect are often distant in space and time policy-resistant: the complexity makes it difficult to understand the system and as a result many seemingly obvious solutions to problems fail. Source: Sterman, 2001 06/10/2015 16

A summarizing view: the perspective of socio-technical transition Landscape: societal Click to edit Master text styles problems and technological advance Regime: current ways to solve problems (laws, practices) Landscape developments put pressure on regime, which opens up opportunity for novelties New regime influences landscape Niches : innovations e.g. at the regional level Regime is dynamically stable : on different dimensions there are ongoing processes. Novelties emerge on multiple dimensions (technology, user preferences, policies) and are gradually linked together. New configuration breaks through, adjustments occur in the regime. Time Source: Geels & Schot 2007 06/10/2015 17

Thank you! 18