Service Innovation for Sustainable Business: Stimulating, Realizing and Capturing the Value from Service Innovation

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Service innovation is a concept that, for the last decays, has received increased attention both among academics as well as practitioners. Service innovation is, however, a multi fragmented concept, which often induces confusion. The main purpose of the book is to discuss and explain what service innovation is, based on contemporary research. It explains service innovation from three different perspectives stimulation, realization, and value capture.

Stimulation: Focus on the front-end of service innovation. It deals with structures, cultures, and processes that stimulates innovation. Idea management will be a central part of this where the specifics with handling service ideas, both internally and externally, are illuminated.

Realization: Deals with aspects regarding how to realize service innovations. This includes different aspects such as specific tools to be used for developing services. But also processes such as service design which aims to receive a better understanding of the customer or user. As co-creation is an important aspect of service innovation this will be dealt with. Finally, as many service innovations require behavior change (internally within the organization and externally among the receiving parties), this is also covered.

Value capture: Companies transiting to become more service oriented discover the need to reconsider old business models in order to capitalize on their service offerings. Services are often taken for granted and included in the price. This chapter addresses the problem of going "from free to fee". In addition, the chapter also deals with the difficulties that involve moving from a traditional product-oriented logic to a more contemporary service-logic.

Author(s): Per Kristensson, Peter Magnusson, Lars Witell
Publisher: World Scientific Publishing
Year: 2019

Language: English
Pages: 332
City: Singapore

Contents
Foreword
About the Editors
About the Authors
Chapter 1 Introduction
Introduction
Service Research Center in Karlstad, Sweden
Service Innovation for Sustainable Business
Purpose of the Book
Who Should Read This Book?
Outline of the Book
References
Chapter 2 Methods and Tools for Service Innovation
The Service Innovation Process
Categorization of methods
Service Blueprinting — A Holistic View of the Service
Methods and Tools to Understand and Explore Customer Needs
Methods Used to Test and Simulate the Service Process
How do you start?
References
Chapter 3 What is an Idea for Innovation?
Introduction
The Front End of Innovation
The Components of an Idea
What is a problem?
Example 1
What is a solution?
An idea’s characteristics
Conceptual Model
Example 2
Discussion
Practical Implications
References
Chapter 4 Public Management Logics for Service Innovation
Introduction
Applying a Practice View to Service Innovation
Service innovation as a practice
Actors of public service innovation practices
The levels, recursiveness, and transformation of social practices
Multiple levels of social practices
The recursiveness and transformation of practices
Public Management Logics for Service Innovation
Presenting a Model for Public Management Logics for Innovation
Discussion and Implications
References
Chapter 5 From Customer Feedback to Innovation: The IKEA Innovation Journey from Screws to Click
Introduction
Democratic Design as a Basis for Customer-Centric Innovation
Customer feedback
Service innovation
Service innovation framework from an ecosystem view
The innovative click system
Discussion
References
Chapter 6 Resource Integration Processes as a Microfoundation for Service Innovation
Introduction
Theoretical Framing
A conceptualization of service innovation
Microfoundations and principles of resource integration
Informing service innovation with resource integration as a microfoundation
Actors and collaboration
Changes in practice through the aggregation of interactions
Conclusion
References
Chapter 7 Service Teams and Understanding of Customer Value Creation
Introduction
Service Innovation as a Change in the Customer Value Creation Process
What is a Service Team?
Different Configurations of Service Teams
Service Teams and Their Understanding of Customer Value Creation
Conclusion
Reference
Chapter 8 Creating the Perfect Match: Roles and Archetypes of Open Service Innovation
Introduction
Open Innovation, Service Innovation, and Networks
Three Archetypes for Open Service Innovation
Role Constellations in Open Service Innovation
Actor roles — the role concept
Roles and knowledge provision
A Multiple Case Study of Open Service Innovation
Data collection and analysis
The innovator firm: Open service innovation
Roles in internal group development
Roles in satellite team development
Roles in rocket team development
Discussion
What roles do we need?
Matching roles in internal group development
Matching roles for satellite team development
Matching roles for rocket team development
New role: The constitutional monarch
Long-lasting open service innovation groups
Conclusions
References
Chapter 9 Servitization Goes to the Psychologist
Introduction
About the research
The Platform to Servitization
Taking the customer perspective — it is about value, not products
Five Techniques to Start and Perpetuate Change
Head start
Crisis awareness
Perpetuating the Change
Labeling
Social proof
Small wins
Using the Five Techniques in Change Projects
References
Chapter 10 Unveiling the Hidden Aspects of Service Innovation: Using Eye Tracking to Understand and Enhance Customer Experience
Introduction
Studying the Retail Servicescape from a Process Perspective
The 3S Model
The 3S Levels Summarized: Stock, Shelf, and Store
Stock
Shelf
Store
Conclusion
References
Chapter 11 Values-Driven Service Innovation for Transformational Change
Theoretical and Conceptual Framework
Research Methodology
Empirical Study
Discussion
Conclusion and Implications
References
Interviews and Discussions
Chapter 12 Bridging the Gap — From Great Ideas to Realized Innovations
Background
Service Innovation in a Healthcare Context
Implementation Research
Service Innovation Implementation
Actors’ Roles in Service Innovation Implementation
Users
Frontline Employees
Frameworks for Service Innovation Implementation
A Study of Primary Care
Conditions for Service Innovation Implementation in Healthcare
Environment
Organization
Organizational structure
Organizational culture
Structure for innovation implementation
Authority
Middle managers
Frontline employees and users
Management support
Resistance
Challenges for Realizing Innovative Ideas
Managerial Implications and Future Research
Conclusions
References
Chapter 13 Exploring the Challenges of Servitization in Manufacturing Companies
Embracing Services in Manufacturing
Distinction between Products and Services
Understanding Services in Manufacturing
The nature of manufacturing services
Servitization a transformational process
Barriers for product-to-service transition
Method
Study 1 — ECO-case
Outline
Investigated company
Study 2 — Triangulation of four organizations
Empirical Results and Reflections
How do companies define manufacturing services?
Transiting toward services
Triggers for infusing services
Critical factors for service transition
Stuck in a manufacturing mindset
Knowledge spillover and IPR
Pricing and charging
Concluding Discussion
A knowledge-based transition
Separate or integrate — this is not the question
References
Chapter 14 Value Creation in Service-Based States of Business Relationships
Introduction
Value and Value Drivers in a Relationship Context
Value
Value drivers
States of business relationships
Value drivers in different states of business relationships
Methodology
Empirical context
Sample, data collection, and analysis
Results
Identification of value drivers
Identification of two service-based states of business relationships
Value drivers and service-based states of business relationships
Conclusions
What does this mean for managers?
Appendix: An Overview of the Conceptualization of Value Drivers
References
Index