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This presentation was presented at ANZAM Operations, Supply Chain and Service Management Symposium in June, 2011.
The Paper can be viewed at Google Scholar from ANZAM Symposium's website

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  1. 1. INNOVATION IN SERVICES AND ITS MEASUREMENT AT FIRM LEVEL: A LITERATURE REVIEW<br />Paper by: Megha Sachdeva<br />and <br />RenuAgarwal<br />1<br />
  2. 2. Service Enterprises<br />Increasing contribution of Service Enterprises<br /><ul><li>70 per cent of employment in OECD countries
  3. 3. 80 per cent of Gross Domestic Product (GDP) in Australia
  4. 4. 84 percent (approximately) Australian firms are services firms which employ 85 per cent of the work force and 93 per cent of Australian university graduates.</li></ul>MeghaSachdeva and RenuAgarwal<br />2<br />
  5. 5. Definitions<br />Innovation is <br />‘…implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organizational method in business practices, workplace organisation or external relations’ (Oslo manual 2005, p.) .<br />Services are<br />‘the application of competencies (knowledge, skills and experience) of stakeholders, whereby customers provide themselves, or provide significant inputs into the service production process and in the best case are transformed by the simultaneous consumption – the experience’ (Agarwal and Selen 2011, p. 8).<br />Megha Sachdeva and Renu Agarwal<br />3<br />
  6. 6. What is Service Innovation?<br />Service Innovation is<br />‘A new or considerably changed service concept, client interaction channel, service delivery system or technological concept that individually, but most likely in combination leads to one or more (re)new(ed) service functions that are new to the firm and do change the service/good offered on the market and do require structurally new technological, human or organisational capabilities of the service organisation’ (Van and den Hertog cited in Forfas 2006)<br />Megha Sachdeva and Renu Agarwal<br />4<br />
  7. 7. Why measurement is Important?<br />Literature on innovation in services emphasises some important functions related to organisational activities such as the intangible nature of organisational products, high level of user involvement, dominance of technology in service related innovations and increasing supremacy of non-technological innovations in organisations. <br />To date, macro level innovation surveys have been used to measure innovation activity for policy formation, for statistical measures and information gathering. <br />However, a need to develop a survey instrument which covers aspects of innovation that are considered cutting-edge, relevant and crucial for the economic growth of nations at a firm level is needed. <br />Megha Sachdeva and Renu Agarwal<br />5<br />
  8. 8. Measurement Framework<br />Megha Sachdeva and Renu Agarwal<br />6<br />Classical Framework<br />Increase in Revenue, Increase in earnings,<br />Increase in market share<br />(Box 7)<br />R&D and scientific research including cross-disciplinary research<br />(Box 1)<br />Tangible/technological Innovation <br />(patents, software development, copyrights, trademarks)<br />(Box 3)<br />Overall environment- Firm culture, values etc and external factors such as government and regulation<br />(Box 4)<br />Measurement of Innovation<br />Innovation Resources, Innovation Effort, Innovation Output, Innovation Performance<br />(Box 8)<br />Service Innovation <br />(new service, new delivery method, new process, new marketing method, new business model)<br />(Box 6)<br />Feedback loop – dynamic measure of innovation<br />Human Capital -Employee and management training, Customer engagement, research in cross-disciplinary fields<br />(Box 2)<br />Intangible Innovation (new and improved process and methods, management techniques)<br />(Box 5)<br />Productivity Analysis<br />Allocation of resources,<br />Labour productivity,<br />Cost efficiency<br />(Box 9)<br />Feedback loop – dynamic measure of innovation<br />
  9. 9. Future Research Directions<br />Gaps and practical issues are expected in the proposed framework which will be identified in the future research. <br />Limitations to the extent human dynamics can be measured.<br />Megha Sachdeva and Renu Agarwal<br />7<br />
  10. 10. Referencing <br />Agarwal, R. and W. Selen, Multi-dimensional nature of service innovation-Operationalisation of the Elevated Service Offerings construct in collaborative service organisations. International Journal of innovation Management, 2011, forthcoming.<br />Chan, V., C. Musso, V. Shankar, G. Day, and D.J. Reibstein, Assessing innovation metrics: McKinsey Global Survey Results. McKinsey Quarterly Journal, 2008(November 2008).<br />Forfas, Services Innovation in Ireland - Options for Innovation Policy. 2006, Dublin.<br />Oslo, Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data. 2005, OECD, Paris.<br />Megha Sachdeva and Renu Agarwal<br />8<br />
  11. 11. Thankyou<br />Any Questions?<br />Contact details : Megha Sachdeva<br />Mobile: +61 433 188 258<br />Email:<br />Renu Agarwal<br />Email:<br />MeghaSachdeva and RenuAgarwal<br />9<br />