The document discusses service innovation, defining it as doing things better and doing new things. It outlines that service innovation involves new service development, incorporating service elements into other innovations, innovating within service organizations, and enabling innovation through services. The document then discusses different types of services, how they have become more technology-focused over time, and the drivers of service innovation, such as competition and changing customer demands. It notes that innovation in services can take diverse forms and emphasizes the importance of skills, knowledge, networks, and collaborations to service innovation.

1. 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

2. Service Innovation What? Why? How?

5. 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)

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

17. 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

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