Abstract
This chapter gives an introduction to innovation management in a services context. First, basic definitions and types of innovation are presented. The history of service innovation research and its origins in manufacturing innovation are outlined. The main part of this chapter introduces and applies relevant concrete methods that can support projects for new services development. The last section elaborates on the servitization of manufacturing. It emphasizes the importance of services for the manufacturing industry and presents five types of integrated product service offerings.
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Notes
- 1.
This does not mean that there are no physical resources involved in providing a service. The difference to other PSS types is rather that the customer does not buy a product but a certain result or capability which was prior delivered through a product. The way in which these results or capabilities are achieved is not specified any more. Instead, the provider is free in choosing how the predefined results or capabilities are to be achieved.
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Review Section
Review Section
3.1.1 Review Questions
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1.
What is the definition of innovation that was used in this chapter?
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2.
What are the four basic types of innovation according to Henderson and Clark? Name the two dimensions along which they are distinguished, draw the resulting framework and give an example for each category.
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3.
What are the three approaches to studying innovation in services and how do they relate to existing knowledge in the manufacturing innovation domain?
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4.
What are the essential elements and steps in applying the Janus Cones method? Please apply the method to a service topic not presented in this book and record your results.
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5.
Which method presented in this chapter is most suitable for analyzing the current and potential stakeholders of a service system? What value can you derive from applying it to your innovation challenge? Please compare the services offered by a budget airline, such as Ryanair, and those offered by a full-service provider, such as Emirates, using the value curve method.
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6.
Using the customer system method, please analyze the involved parties in the following situation: A start-up is considering to offer a novel service that allows college students to mentor highschool students in order to give them profound insights into their colleges of interest before they start with their studies.
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7.
Which types of product service systems are there? Find an example from practice for each type of product service system defined.
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8.
What are the challenges posed by servitization and how could each of them be addressed?
3.1.2 Project
This chapter has briefly touched on the concept of Massive Open Online Courses (MOOCs) as instruments in online teaching. A comprehensive overview of courses offered, as well as further information can for example be found at https://www.mooc-list.com.
Imagine your university wants to create its own MOOC format and maybe even delivery platform. The key question, of course, is how to make the new service stand out from the large number of already established MOOCs in the market. This entails the consideration of the customers’, as well as the teachers’ perspective at your university.
The following questions should be answered in your report:
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What characterizes the existing MOOC landscape and offerings? What unique advantages and shortcomings do they have? You may use for example the value curve and the business model canvas method to perform this analysis.
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In designing a novel MOOC service, what are the key dimensions your university has to address? A suitable method to tackle this question is the context map.
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Who are the stakholders you have to address in the creation and delivery of the service? What are their individual requirements and motivations? You can use the customer system method to answer this point.
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How can you ensure that the newly created service is not only more attractive to students than existing MOOCs, but potentially more attractive than traditional classroom teaching? How is your university going to implement the service? You can build on your previous value curve and business model canvas analysis to answer this question.
In writing your report, please provide the visual application of the introduced methods, as well as corresponding explanatory text. Furthermore, your report should of course follow standard academic practices and present references for material and information that you have retrieved and used in your work.
3.1.3 Key Terms
- Innovation :
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Innovation is the introduction of a novelty to a market.
- Service Innovation :
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The creation of a new market offering in the form of a service.
- Types of Innovation :
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Different types of innovation can be differentiated. One popular categorization was developed by Henderson and Clark, based on the dimensions change in key concepts and change in linkages between these concepts.
- Service Innovation Methods :
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There are a number of specific methods that can be employed in service innovation projects. The methods presented here focus on the early phases of such projects.
- Innovation Process :
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Innovation processes are simplified models for describing the individual phases that an innovation project usually goes through. They can also be used in a prescriptive way, when a company designs their own innovation process and has projects follow it.
- Business Model Canvas :
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The Business Model Canvas is a relatively recent and comprehensive tool for describing a business model for an existing company, for a new offering, or for a start-up.
- Product Service System :
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An integrated product and service offering that delivers a certain value in use to the customers.
- Servitization :
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The transformation of industrial companies from selling products to selling product service systems.
3.1.4 Further Reading
Renu Agarwal, Willem Selen, Göran Roos, and Roy Green. Handbook of Service Innovation. Springer, 2015.
Lance Bettencourt. Service Innovation: How to go from customer needs to breakthrough services. McGraw-Hill, 2010.
Henry Chesbrough. Open Services Innovation: Rethinking your business to grow and compete in a new era. John Wiley & Sons, 2010.
Rod Coombs and Ian Miles. Innovation, Measurement and Services: The New Problematique. In Economics of Science, Technology and Innovation, 18, pp. 85–103, 2000.
Faïz Gallouj, and Faridah Djellal. The Handbook of Innovation and Services: A Multi-disciplinary Perspective. Edward Elgar Publishing, 2010.
Jan Leimeister. Dienstleistungsengineering und-management. Springer, 2012.
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Kohler, M., Schmitz, B., Neus, A. (2015). Service Innovation. In: Cardoso, J., Fromm, H., Nickel, S., Satzger, G., Studer, R., Weinhardt, C. (eds) Fundamentals of Service Systems. Service Science: Research and Innovations in the Service Economy. Springer, Cham. https://doi.org/10.1007/978-3-319-23195-2_3
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DOI: https://doi.org/10.1007/978-3-319-23195-2_3
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