This document describes a project between two universities of applied sciences and local small and medium enterprises (SMEs) in Finland to improve service skills and competencies. The project's main objectives were to help SMEs develop value-adding services for clients and establish effective cooperation models between the universities and SMEs. The project involved literature reviews, workshops using methods like learning cafes and appreciative inquiry, and development meetings to address challenges identified by the SMEs around service innovation, skills transfer, and competency development. The universities helped introduce new methods, facilitate the development process, and foster networking between partners to improve service innovation and competencies in collaboration with local SMEs.

1. Service innovation and
transfer of service
competence in collaboration
between Higher Education
and entrepreneurial firms
D.Sc Kari Laine & Mr. Ari-Pekka Kainu
Satakunta University of Applied Sciences
Finland
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

2. ServiTrans Project
• 12 months (16 –months) RDI project: 1.1.2011 – 30.06.2012
• Budget: 60 000 €
– Research from Tekes: 36 000 € (The Finnish Funding
Agency for Technology and Innovation)
– Own contribution: 24 000 €
• In cooperation with Seinäjoki University of Applied Sciences,
SC - Research and local small and medium-sized enterprises
SMEs)
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

3. Main objectives
• To help SMEs to develop value-adding services for their clients by
increasing relevant skills and competences
 emphasis on developing existing models and tools further
• Effective cooperation models between universities of applied
sciences and local SMEs
 both SMEs and UAS to benefit from the achieved results.
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

4. Research questions
1. What is the importance of service-skills and competences now and in the future?
2. How can we develop service skills together with SMEs?
3. How should we transfer service skills between organisations or individuals?
4. What is the importance of service skills in promoting service-related innovations?
Genuine and effective cooperation with SMEs will help UAS to understand SMEs’
challenges. Therefore, finding solutions will be easer.
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

5. Partner Firms on Satakunta
Region
• Loiste Marika Raitaniemi www.loiste.net
• Kumppania Oy www.kumppania.fi
• EMDIA Oy www.emdia.fi
Wellfare, Communications and ICT
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

6. Research Questions
1. What is the meaning of service competence in the future
2. How to develop service competences together with SMEs
3. How to transfer service competence
4. What is the role of service competence in the development of
service innovations
Good interaction with SMEs helps university to understand the
challenges faced by SMEs and also makes it easier to find
solutions for SMEs
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

7. Actions
Work packages:
1. Defining context for research
 Compact literature review
 Mapping out existing service-related tools and models
2. Empiric field work for testing and further developing existing innovation tools and
models
 6 workshops
 3 on Seinäjoki region
 3 on Satakunta region + development team meetings
3. Summary of best practices and sharing the results
National seminar on Helsinki region, several regional meetings and one regional
seminar
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

8. Challenges listed by firms
1. Service innovation process modeling
2. Making services tangible
3. Creation of service concepts
4. Standardization of services
5. Development of existing services and creation of new services
6. Development of full service concepts
7. Selling total solutions to customers
8. Making service concepts more concrete for the customers
9. True understanding of the customer needs
10. Development of the service innovation process from the knowledge
transfer and effectiveness point of view
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

9. Challenges listed by firms
1. How to make service a product and how to model the service innovation
process
2. How to create sustainable/scalable concepts and make service quality
stable
3. Development of existing services and development of new ones (from
incremental to radical)
4. Development of total concepts
5. Selling total concepts to customers
6. How to make complex and intangible services tangible for customers
7. How to ensure that it is understood why customer wants the service
8. How to develop processes to better transfer and share knowledge, and
how to be more effective at the same time
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

10. Actions of empirical WP
Three workshops and several
development meetings between
them
To use methods already tested but
applied in new ways
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

11. Workshop 1
SUAS international week: Learning Cafe method
– Participants: 24 experts from 8 countries
– Entrepreneurs, teachers, researchers, managers
– Entrepreneurs presented their business case and 2-
3 challenges in 10 minutes
– Solving challenges, presentations and group
discussions
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

12. Experiences on workshop 1
1. Requires good preparation
2. Good discussions, creative response
3. Maybe even more specific challenges would
have been possible, maybe with more
concrete business cases
4. Unique opportunity for entrepreneurs
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

13. Development meetings
• During the project several development
meetings were held
• Open for all participants
• In second meeting entrepreneurs got an
idea about collaborative communication
tool and service
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

14. Aplication of 4D method
Based on results of
Workshop 1 and
firms’ development
work between the
workshops
Kainu & Laine 2012
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

15. Workshops 2 and 3
Appreciative Inquiry’s (AI) 4D circle, light
and accelerated version
1. Start from strengths
½ day
2. Create a vision
3. What is possible
½ day
4. Create a plan
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

16. Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

17. ”DJ Kuutio”
Kainu & Laine 2012
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

18. Conclusions
1. AI method is applicable for service innovation and 4D cycle’s light version fits for
SMEs but requires commitment and work between the workshops
2. The starting point may be the service itself but soon we end up developing the
service process, competences, and management processes
3. Competences and knowledge must be combined
4. Transfer and development of service competences should be solution based
5. Lack of systemic development methods although development is daily
6. Time management is a challenge also in service development
7. Interaction accelerated learning
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

19. Role of HEI
• Introduce new methods and models
• Match problems and methods
• Facilitate development process
• Activate partners
• Foster networking
• Model collaboration
• Define concepts
• Tell the stories
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management

20. Thank You!
Contact
kari.laine@samk.fi
ari-pekka.kainu@samk.fi
Satakunnan ammattikorkeakoulu | Tekniikka ja merenkulku
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management