Innovation Strategy in Service Firms

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!

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Innovation Strategy in Service Firms

by FlandersDC on Jul 05, 2011

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