Sustainable service innovation

IESS 1.1Second International Conference on Exploring Services SciencesGeneva, 16-18 February 2011 The Dual Perspective of Sustainable Development in Service Innovation: a Conceptual Model Proposition for Research and Technology Organizations (RTOs) Pierre-Jean Barlatier and Eleni Giannopoulou

Background-Introduction ➤  Our purpose and theoretical contribution ➤  Propose a model of the complete image of sustainability in service innovation ➤  Why is this important? ➤  Innovation in Services ●  rising topic of discussion among researchers and practitioners ●  raises issues of sustainability ➤  Sustainable Innovation in Services has two aspects: ●  Sustainable/responsible innovation (environmental, economical and social constraints) ●  Sustainable/continuous innovation ➤  BUT what about the current Research Frontier? ●  Literature has been concentrated on one or the other aspect ●  The combination is a more complete illustration of the concept ➤  Our Research Context: RTOs (higher responsibility and sensitivity towards both aspects of sustainability)2/17/11 2

A sneak-peak into the rest of the presentation ➤  Theoretical Elements ➤  The New Service Development (NSD) process ➤  Service Innovation through the Resource Based View (RBV) lens ●  Resources Combination and Resulting Capabilities ➤  The RTO’s assets ●  The Resource Base ●  The Experience Base ●  The Service Portfolio ➤  The two aspects of sustainability in Service Innovation (Strategy concern) ●  Sustainable/Continuous Innovation: Issues of Governance ●  Sustainable/Responsible Innovation: Environemental, Economical and Social Responsibility ➤  The Model ➤  By Way of Discussion: A glance into existing models ➤  Conclusions2/17/11 3

The New Service Development (NSD) Process Defining the NSD process is essential ➤ Various models: ➤  NPD models (Booz, Allen and Hamilton (BAH) model (1982), Kline and Rosenberg (1986)) ➤  NSD models ●  Linear (Shostack (1984), Scheuing and Johnson (1989), Edgett and Jones (1991)) ●  Iterative (Tax and Stuart (1997), De Jong et al. (2003), Johnson et al., Zhou and Wei (2010)) ➤  Iterative models illustrate better the NSD (control and flexibility) ➤  Including customers in NSD process (benefits and challenges)2/17/11 4

The NSD through the Resource Based View (RBV) Lens Resource Based View (Penrose, 1959): Competitive advantage comes from a bundle of resources which are rare, valuable, imitable and without equivalent substitute ➤  Resources need to be managed effectively in order to create organizational capabilities that support the NSD process ➤  The capability to combine and deploy organizational resources is essential ➤  For innovative organizations (like RTOs) the aim is to develop innovation capabilities by deploying all their available resources ➤  Challenges arise: core capabilities should not become core rigidities (« dynamization » practices) ➤  The RTO needs to be aware of its assets in order to fully deploy and leverage them2/17/11 5

The RTO’s Assets for Service InnovationThree interconnected assets:➤  Resource Base ➤  The Importance of Human Skills ➤  The Role of Organizational Structure ➤  Information Technologies (IT) as NSD Enabler ➤  Relational Competencies➤  The Experience Base ➤  Repository of experiences and practices in Service Development ➤  Tacit (Know-how), Explicit (Knowledge Management Systems)➤  The Service Portfolio ➤  Capitalization of previous experiences Resource Base Capitalization Human Skills Experience Base Organizational Structures Service Repository of Information Technologies Experiences and Practices in Portfolio Relational Competencies Service Development2/17/11 6

The Sustainable Development of Innovation in Services Reminding the two aspects: ➤ Sustainable/Continuous Innovation Governance of Resources and Capabilities for the Sustainability of the Innovation Process ➤ Sustainable/Responsible Innovation Environmental, Economical and Social Responsibility in Service Innovation It is a strategic concern to take care of both aspects2/17/11 7

Sustainable/Continuous Innovation: Issues of Governance (1)Structuring service innovation The Diamond Model by Hallenga-Brink and Brezet (2005) ➤  The Sustainable Service Innovation Framework by Absil, Dubois, Grein, Michel and Rousseau (2008)2/17/11 8

Sustainable/Continuous Innovation: Issues of Governance (2) ➤ Merely structuring the innovation process is not enough Need for an overall governance of resources and capabilities towards sustainability ➤ Lack of such effective practices, however: ➤  Two monitoring systems (Leitner, 2005) ●  Benefit: RTO learn about their knowledge production systems ➤ Managerial guidance rather than monitoring ➤ Innovation and creativity culture ➤ Leadership2/17/11 9

Sustainable/Responsible Innovation: Environmental, Economical and Social Responsibility Sustainable innovation constitutes a challenge ➤ RTOs due to their interrelation with academia, industry and government: ➤  Have increased responsibility towards society BUT also ➤  Can influence and shape innovation systems ➤  Can assist in the development of a sustainable innovation policy ➤  Can bridge the sustainability incentives gap between industry and government2/17/11 10

The Model Customers Customers collaboration New Service Development Process Combination Capabilities Monitoring and leveraging Resource Base Human Skills Organizational Assets for Experience Base Capitalization Org. Processes & Structures Information Technologies Service Repository of in Service Innovation Experiences and Practices Service Portfolio Relational Competencies Development Resources and Practices Governance Sustainable Development of Innovation in Services co-evolution External Environment Government, Industry, Academia2/17/11 11

A Glance at Existing Models ➤  Implications for the traditional sustainability in the innovation process (integrated strategy towards sustainability) ➤  Local references to sustainability (NSD process or culture) ➤  Noteworthy models: ➤  Brezet et al. (2001): a development process taking into account environmental issues at every step ➤  Flores et al. (2010): Four enablers to sustainable innovation; mass customization, value network, sustainable development and the complete product or service lifecycle ➤  Sustainable adaptation of the Diamond Model (Brezet et al.). ➤ However none of these models captures both internal and external aspects of sustainability2/17/11 12

Conclusions – Further Research ➤ Theoretical Contribution on the sustainable development of service innovation ➤  Two aspects of sustainability: ●  Sustainable/Continuous Service Innovation ●  Sustainable/Responsible Service Innovation ➤  Internal and External factors for service innovation ➤ Practical contributions ➤  From the qualitative, multiple case studies of European RTOs ➤ Expected benefits ➤  Validate and refine the model ➤  Valuable insights of sustainable service innovation current practices within RTOs ➤  Results maybe a source of inspiration for RTOs and other knowledge intensive organizations2/17/11 13

Thank you Comments and Questions?2/17/11 14

Sustainable service innovation

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