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Research for innovative service SMEs
 

Research for innovative service SMEs

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Introduction to service innovation for a workshop on research requirements for service SMEs

Introduction to service innovation for a workshop on research requirements for service SMEs

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    Research for innovative service SMEs Research for innovative service SMEs Presentation Transcript

    • 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
    • Service Innovation What? Why? How?
      • 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? What?
      • 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
    • 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. 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)
    • 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.... Technology-intensive People -intensive
    • 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.... 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) Technology-intensive People -intensive
    • Varieties of Service 2 Some people-intensive services involve very high levels of highly qualified labour (professional services, social services) Others depend on large numbers of formally unskilled staff (retail, horeca) Knowledge-intensive Labour -intensive Technology-intensive People -intensive Technology-intensive People -intensive
    • Varieties of Service 2 Typically – there are exceptions - IT-intensive require many high skills 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 Typically – there are exceptions - motor-intensive use low or mixed skill levels Knowledge-intensive Labour -intensive Technology-intensive People -intensive Technology-intensive People -intensive
    • Varieties of Service 3 Services involve their customers Sevices may be more or less standardised, “mass produced” But consumer involvement may be more or less intense and interactive Services may be specialised, bespoke, customised to specific user requirements Knowledge-intensive Labour -intensive Technology-intensive People -intensive standardised specialised standardised specialised Technology-intensive People -intensive
    • Varieties of Service 3 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 Services may be specialised, bespoke, customised to specific user requirements Knowledge-intensive Labour -intensive Technology-intensive People -intensive standardised specialised standardised specialised Technology-intensive People -intensive
    • 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
    • So: what is your service? (what knowledge might you need from R&D?) Networks and systems, logistics, mech. eng. Specific domains – informatics, engineering, architecture, environment … Specific domains – financial, economic, social, legal, aesthetic, organisational, … Social, demographic, cultural, human relations Applications and design of technology, systems, interfaces Knowledge-intensive Labour -intensive Technology-intensive People -intensive standardised specialised standardised specialised Technology-intensive People -intensive
    • Diverse service innovations
      • 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-intensive Labour -intensive Technology-intensive People -intensive standardised specialised standardised specialised
      • Competition
        • Keeping ahead
        • Less sheltered markets
      • More satisfied customers and staff
        • More reliable / stable demand and retention
      • Demands from business or consumers, changing social circumstances
      • New technological or market opportunities
        • Expansion, cost-reduction
      • Environmental drivers
      • Regulations
      Why? Drivers But SMEs face serious constraints: Lack of finance, time, capacity, skills, partners Driving Innovation: see(k)ing models elsewhere       Why?
    • 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?
    • R&D use (rather old CIS data) Utilities Whole Trans Tele Finance Computer Technical sale port comms S= 10-49 employees M=50-249 employees L=250+ employees Data for EU15
    • 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.
    • 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
    • Knowledge for Diverse innovations
      • 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
      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 dynamics R&D into market trends, foresight and similar work on new needs and demands
    • 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
    • End of Presentation