Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
Service Innovation:doing things better and doing
new things
Ian Miles Professor of Technological Innovation & Social Change
Centre for Service Research & MIoIR
Manchester Business School
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
Service Innovation
What
?
Why?
How?
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
Back to basics - the PRACTICES/PROCESSES of:
Service as product (the service), as production and delivery (the service process), as philosophy (service orientation), as encounter (service journey).
Innovation as output (the innovation), as process (innovation management), as philosophy (innovation orientation).
Service innovation: new service development; service elements of innovation; innovation within service organisations; innovation through services.
Service and Innovation
DOING USEFUL THINGS (as opposed to MAKING USEFUL THINGS – goods)
DOING BETTER (products or processes…)
DOING THINGS BETTER, DOING BETTER THINGS
What? Wha
t?
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
Back to basics - the PRODUCTS/OUTPUTS of:
Service as product (the service), as production and delivery (the service process), as philosophy (service orientation), as encounter (service journey).
Innovation as output (the innovation), as process (innovation management), as philosophy (innovation orientation).
Service innovation: new service development; service elements of innovation; innovation within service organisations; innovation through services.
Service and Innovation
USEFUL CHANGES in people or things (rather than selling THINGS for users to make their own
changes with)BETTER VALUE
PROPOSITIONS (quality, cost, functionality)
NEW/IMPROVED CHANGES, or WAYS OF MAKING
CHANGES, in people or things
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
Services: Pervasive Uptake of Information Technology
Labour -intensive
The trend, especially since the 1980s, is for all services to become more technology-intensive – which often means
innovation in service production and delivery processes*; much back-office use of PCs, networks, etc.
The trend, especially since the 1980s, is for all services to become more technology-intensive – which often means
innovation in service production and delivery processes*; much back-office use of PCs, networks, etc.
Transaction & interaction innovations many services have to adopt: [1] electronic cash systems [2] modern communications credit and debit cards, mobile phones online transactions, etc. websites, etc.
Transaction & interaction innovations many services have to adopt: [1] electronic cash systems [2] modern communications credit and debit cards, mobile phones online transactions, etc. websites, etc. One driver of innovations is simply to keep abreast of customer expectations
(and what competitors are doing to meet them)One driver of innovations is simply to keep abreast of customer expectations
(and what competitors are doing to meet them)
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
Varieties of Service 1
Labour -intensive
The trend, especially since the 1980s, is for all services to become more technology-intensive which often means
innovation in service production and delivery processes; still there are services that are evidently more or less....
The trend, especially since the 1980s, is for all services to become more technology-intensive which often means
innovation in service production and delivery processes; still there are services that are evidently more or less....
Technology-intensive
People -intensive
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
Varieties of Service 1
Labour -intensive
The trend, especially since the 1980s, is for all services to become more technology-intensive which often means
innovation in service production and delivery processes; still there are services that are evidently more or less....
The trend, especially since the 1980s, is for all services to become more technology-intensive which often means
innovation in service production and delivery processes; still there are services that are evidently more or less....
Some services are supporting technology (telecomms,
systems integration…) or heavily reliant on capital equipment (transport…)
Some services are supporting technology (telecomms,
systems integration…) or heavily reliant on capital equipment (transport…)
Some services are highly dependent on people
supplying the service to consumers (trade, personal,
business services)
Some services are highly dependent on people
supplying the service to consumers (trade, personal,
business services)
Technology-intensive
People -intensive
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
Varieties of Service 2Some people-
intensive services involve very high levels of highly qualified labour (professional
services, social services)
Some people-intensive services involve very high levels of highly qualified labour (professional
services, social services)
Knowledge-intensive
Labour -intensive
Technology-intensive
People -intensive
Others depend on large numbers of formally unskilled
staff (retail, horeca)
Others depend on large numbers of formally unskilled
staff (retail, horeca)
Technology-intensive
People -intensive
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
Varieties of Service 2
Typically – there are exceptions - IT-intensive require many high skills
Typically – there are exceptions - IT-intensive require many high skills
Knowledge-intensive
Labour -intensive
Technology-intensive
People -intensive
Some people-intensive services involve very high levels of highly
qualified labour – “knowledge workers” changing states of data,
information….
Some people-intensive services involve very high levels of highly
qualified labour – “knowledge workers” changing states of data,
information….
Others depend on large numbers of
formally unskilled staff often making changes in
physical states
Others depend on large numbers of
formally unskilled staff often making changes in
physical states
Typically – there are exceptions - motor-intensive use low or
mixed skill levels
Typically – there are exceptions - motor-intensive use low or
mixed skill levels
Technology-intensive
People -intensive
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
Varieties of Service 3
Knowledge-intensive
Labour -intensive
Technology-intensive
People -intensive
standardised
specialised
standardised
specialised
Services involve their customers
Sevices may be more or less standardised,
“mass produced”
But consumer
involvement may be
more or less intense and interactive
Technology-intensive
People -intensive
Services may be specialised, bespoke, customised to specific
user requirements
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
Varieties of Service 3
Knowledge-intensive
Labour -intensive
Technology-intensive
People -intensive
standardised
specialised
standardised
specialised
Services involve their customers
Innovation may need to build on the role of the customer in
coproducing the service
Innovation may aim to simplify, or to provide
more value-added
Technology-intensive
People -intensive
Services may be specialised, bespoke, customised to specific
user requirements
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
So: what is your service?(you may even be a manufacturer supplying services)
Knowledge-intensive
Labour -intensive
Technology-intensive
People -intensive
standardised
specialised
standardised
specialised
?
Technology-intensive
People -intensive
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
Networks and
systems, logistics,
mech. eng.
Specific domains –
informatics, engineering, architecture, environment
…
So: what is your service?(what knowledge might you need from R&D?)
Knowledge-intensive
Labour -intensive
Technology-intensive
People -intensive
standardised
specialised
standardised
specialised
Specific domains – financial, economic, social, legal, aesthetic, organisational, …
Social, demographic,
cultural, human
relations
Technology-intensive
People -intensive
Applications and design of technology,
systems, interfaces
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
Diverse service innovations
Knowledge-intensive
Labour -intensive
Technology-intensive
People -intensive
standardised
specialised
standardised
specialised
• Physical or electronic delivery of the service
• Standardisation and modularisation: increase scale and efficiency, increase scope and flexibility (new services)
• Adding physical components to informational services, adding information and experience components to physical ones
• Apply new technology to new or improved services
• Use knowledge of (changing) organisations and customers (and their technology) to create new services
• Interaction with customers: new ways of jointly producing service
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
CompetitionKeeping aheadLess sheltered markets
More satisfied customers and staffMore reliable / stable demand and retention
Demands from business or consumers, changing social circumstancesNew technological or market opportunities
Expansion, cost-reductionEnvironmental driversRegulations…
But SMEs face serious constraints:
Lack of finance, time, capacity, skills, partners
Why? DriversD
riving Innovation: see(k)ing models
elsewhere
Why?
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
How? 1
Service sectors innovate in different ways -
This varies across sectors: high-tech KIBS are much like other high-tech firms (R&D and technology acquisition driving innovation).
Otherwise formal innovation management (esp. R&D management structures) is rare, outside of the biggest service firms. (Whose use of knowledge management, service design tools, etc., is worth watching)
How?
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
R&D use (rather old CIS data)
0%
10%
20%
30%
40%
50%
60%
70%
80%
Intramural R&D
Acquired R&D
Utilities Whole Trans Tele Finance Computer Technical sale port comms
S= 10-49 employees
M=50-249 employees
L=250+ employees
Data for EU15
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
How? and how to augment?
Professional KIBS, social and creative services are very innovative. Typically use professional networks as sources of ideas, and in-practice ad-hoc innovation dealing with problems. May create innovations for their clients to use.
Organisational change is relatively more important to services (though: technological innovators also tend to be organisational innovators; & often the two are intertwined).
Many services are “supplier-driven” – innovation from the adoption of new equipment and software – though adopters can also be creative users.
Consumers and clients, as well as staff, can be important sources of innovation – and often have to be engaged in the process of creating or rolling out new services.
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
How? Skills and Knowledge
General need to combine managerial, domain (user and market knowledge), technology and service (product, process, quality) capabilities – the “T-shaped” person, cross-professional, interdisciplinary.
Many services have poor links to wider innovation systems, lack of heritage in using and performing research.
Much R&D not designed for services (this has been recognised by new programmes – to some extent)
Service firms do not know where to go – esp. SMEs
Role of specialised consultancies, professional networks
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
• Physical or electronic delivery of the service
• Standardisation and modularisation: increase scale and efficiency, increase scope and flexibility (new services)
• Adding physical components to informational services, adding information and experience components to physical ones
• Apply new technology to new or improved services
• Use knowledge of (changing) organisations and customers (and their technology) to create new services
• Interaction with customers: new ways of jointly producing service
Knowledge for Diverse innovations
Interaction design, R&D into human-technology interfaces; Service design, R&D into relationship management
R&D exploiting new generations of IT – esp tags, locational services,
etc., and concerning social dimensions like privacy
additionally: R&D on experience and affect, and issues like trust
Product-service systems research (including SME roles in COPS)
Biotechnology, neurotechnology; use of IT to analyse system dynamicsR&D into market trends, foresight and similar work on new needs and demands
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
So, what to do?Share experience and learning
Work together on common problems
Take care with IP!
Pay attention to employees and customers (but look beyond current needs and problems)
Build capacities to assess what’s emerging from R&D, where and how to participate
Scan beyond immediate industry
See innovation as a way of life, not a luxury or one-off event
Research supporting Service Innovation: a workshop for European SMEs
MIIRCentre
for Service Research
End of Presentation
Top Related