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Innovation Strategy in Service Firms
 

Innovation Strategy in Service Firms

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Innovation in service firms lags behind innovation in industrial firms, says research from the Flanders DC knowledge center at the Vlerick Management School. The research also gives strategy and ...

Innovation in service firms lags behind innovation in industrial firms, says research from the Flanders DC knowledge center at the Vlerick Management School. The research also gives strategy and policy recommendations. We think that service innovation is important: 3 out of 4 jobs in Flanders come from the service industries.

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  • SmartBike DC was a bicycle sharing system implemented in August 2008 with 120 bicycles and 10 automated rental locations in the central business district of Washington, D.C. The network was the first of its kind in North America,[1] but was replaced by the larger Capital Bikeshare system in the fall of 2010.[2]SmartBike DC officially ceased operations in January 2011.[3]The program was a public-private partnership between the District of Columbia Department of Transportation and the advertising firm Clear Channel Outdoor, which operates similar automated bike rental systems in France, Norway, Sweden and Spain.
  • Belangrijke sector, de dienstensectorBBP Vlaanderen 2008: 76% diensten, 23% industrie, 1% landbouwWereldwijd sterkst groeiende industrieEU: 155 miljoenwerknemers (2007)EU: enige sector die nog jobs creeertThe LG Mobile Service Cruiser is a moving service centre dedicated to servicing consumers who own and use LG’s smart and stylish mobile phones. It offers existing and new LG mobile phone users the opportunity to service and update their mobile phones ensuring that they are always in tip top condition.With the LG Mobile Service Cruiser, consumers can update their mobile phone software for free, get their LG mobile phones fully backed-up upon request, and obtain genuine spare parts at affordable prices. LG will also provide a full range of mobile phone accessories for those who wish to purchase them. The team of technicians on board the cruiser will be present to provide information to consumers on how to use or care for their mobile phones.
  • Incrementele innovatie VGLWinkler Prins: continu updaten, uitbreiden, aanpassen, afgeleide producten (jaarboeken, grote WP, kleine WP etc)(kleine) verbeteringen in bestaande producten, methoden, processen, marketing aanpak, business model, …ExploitatieRadicale innovatieVGL Wikipedia: heel nieuw concept, user generated, crowdsourced, gratis online encyclopedie overal en altijd beschikbaar“Echt” nieuwExploratieHoe combineren ?Ambidextrie: radicaal en incrementeel tegelijkDoorbrokenevenwicht: radicaal en incrementeelafwisseldend
  • Gegevens: “CommunityInnovationSurveys” (EU Innovation Scorebord)Met dank aan Steunpunt O&O indicatorenLongitudinale studie: 2002 t/m 2006Steekproef: 349 productiebedrijven & 184 dienstenbedrijven
  • Innovation in services: not really structuredServices: processes with involvement of suppliers and customers“natuurlijke” deelnemersaan het innovatieprocesvaakincrementeelAsk yourself:Hoe managen we incrementele innovatie in elk onderdeel van ons bedrijf ? Geven we voldoende incentives ?Zijn we in staat om radicaal te vernieuwen wanneer dit nodig is ? Hoe organiseren we dit ?Hoe betrekken we onze leveranciers en klanten bij het innovatieproces ?
  • Innovation in services: not really structuredServices: processes with involvement of suppliers and customers“natuurlijke” deelnemersaan het innovatieprocesvaakincrementeelAsk yourself:Hoe managen we incrementele innovatie in elk onderdeel van ons bedrijf ? Geven we voldoende incentives ?Zijn we in staat om radicaal te vernieuwen wanneer dit nodig is ? Hoe organiseren we dit ?Hoe betrekken we onze leveranciers en klanten bij het innovatieproces ?
  • Innovation in services: not really structuredServices: processes with involvement of suppliers and customers“natuurlijke” deelnemersaan het innovatieprocesvaakincrementeelAsk yourself:Hoe managen we incrementele innovatie in elk onderdeel van ons bedrijf ? Geven we voldoende incentives ?Zijn we in staat om radicaal te vernieuwen wanneer dit nodig is ? Hoe organiseren we dit ?Hoe betrekken we onze leveranciers en klanten bij het innovatieproces ?
  • Innovation in services: not really structuredServices: processes with involvement of suppliers and customers“natuurlijke” deelnemersaan het innovatieprocesvaakincrementeelAsk yourself:Hoe managen we incrementele innovatie in elk onderdeel van ons bedrijf ? Geven we voldoende incentives ?Zijn we in staat om radicaal te vernieuwen wanneer dit nodig is ? Hoe organiseren we dit ?Hoe betrekken we onze leveranciers en klanten bij het innovatieproces ?
  • Illustrator Fred McNabb's vision of the future in 1956. Hmmm Flat panel TV, Video Phone and Helicopter. Well Some of it came true. And is that the Disney "House of the Future" in the background?
  • http://research-in-germany.de/research-areas/services/2-nr-1-programmes-initiatives/42508/3-nr-1-innovations-with-services.html
  • SmartBike DC was a bicycle sharing system implemented in August 2008 with 120 bicycles and 10 automated rental locations in the central business district of Washington, D.C. The network was the first of its kind in North America,[1] but was replaced by the larger Capital Bikeshare system in the fall of 2010.[2]SmartBike DC officially ceased operations in January 2011.[3]The program was a public-private partnership between the District of Columbia Department of Transportation and the advertising firm Clear Channel Outdoor, which operates similar automated bike rental systems in France, Norway, Sweden and Spain.

Innovation Strategy in Service Firms Innovation Strategy in Service Firms Presentation Transcript

  • How to Innovate !in a Service Firm!Learnings from the study:!Ambidextrous Innovation Behaviour in Service Firms!
  • GDP Flanders: Loading…!Services: 76%! Manufacturing: 23% remaining!
  • Type of innovation: radical vs incremental! ikipedia
  • How to combine radical & incremental innovation:
 1. Ambidexterity! pat ! and your ! simultaneously head! rub your belly  
  • How to combine radical & incremental innovation:
 2. Punctuated Equilibrium!pat your head STOP then rub your belly STOP patyour head again STOP rub your belly AND SO ON!
  • How do Firms Innovate?! Geen Geen No innovation! innovatie! No innovation! innovatie! 27%! 41%! Exploitatie! Exploitatie! Exploitation! Exploitation! 14%! 13%! Doorbroken! Doorbroken!Punctuated equilibrium! evenwicht! Punctuated equilibrium! Evenwicht! 24%! 24%! Exploratie! Exploratie! Exploration! 5%! Exploration! 2%! Ambidexterity! Ambidextrie! Ambidextrie! Ambidexterity! 20%! 30%! 0   0! 10   10! 20   20! 30   30! 40   40! 50   50! Manufacturing! Services!
  • Service Innovation:
 Proof of the pudding!important  ques4ons  
  • #serviceinnovation! Q1 How do we manage incremental innovation? Enough incentives?!
  • #serviceinnovation! Q2 How do we organise radical innovation when needed?!
  • #serviceinnovation! Q3 How do we involve suppliers and customers in the innovation process? !
  • How to handle innovation in services
 (the management school slide)!
  • Strategies!Send explorers! Experiment and learn! Dive Deep!
  • Strategies!Illustrator Fred McNabbs vision of the future in 1956! Explore multiple futures!
  • Strategies! Work with active users!Use networks! Mobilise! the mainstream!
  • Strategies!Generate ideas! Stimulate diversity!
  • Strategies!Corporate!venturing! Corporate entre-! & intrapreneurship!
  • •  INTERNATIONAAL   BELEID   Foreign example:! €70 million programme in Germany !•  Verschillende beleidsinitiatieven binnen (Finland, Duitsland) en buiten (Japan) EU•  B.v. Duitsland •  “Innovation with services” •  Doel: zelfde excellentie in dienstensector als in productie •  Beleid, onderzoek, handel, industrie, inetrmedairen, sociale partners •  Nieuwe tools en methodologieen •  Voorrang: •  methoden voor engineering van processen in dienstensector •  technologie engineering voor nieuwe diensten
  • Conclusions!•  Service industry very important for jobs!•  4 out of 10 service companies doesnʼt innovate!•  Companies should combine radical and incremental innovation! –  How they do this is less important (ambidexterity or punctuated equilibrium)! –  44% combines the two already (54% in industrial sector)!•  Heterogenity is very important!•  Important role for suppliers and customers!•  We need a more focused and explicit service innovation policy!•  Awareness gap with regard to government support programmes !
  • More info:!www.flandersdc.be!Learnings from the study:!Ambidextrous Innovation Behaviour in Service Firms!