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2010 | OriginalPaper | Buchkapitel

Advancing Services Innovation

Five Key Concepts

verfasst von : Henry Chesbrough, Andrew Davies

Erschienen in: Handbook of Service Science

Verlag: Springer US

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Abstract

As the many chapters in this volume agree, there is growing awareness of the importance of services innovation to the prosperity of advanced economies in the 21^st century. In this chapter, we explore the challenges that services innovation poses, as well as the potential value it may create. The conceptual differences between products and services are also outlined. We pay particular attention to five key concepts in systems integration: the role of complexity; the role of dynamics; the role of systems integration; the role of openness; and the structure of organizations.

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Vorheriges Kapitel Service Innovationservice innovation and Customer Co-development

Nächstes Kapitel What Effects Do Legal law/legal Rules Have on Service Innovation innovation ?

There are three main phases in the PLC: (1) a fluid phase, when product innovation prevails, and many small firms offer competing product designs; (2) a transitional phase, when process innovation dominates, which is initiated by the emergence of a ‘dominant design’ and the shakeout as the industry becomes dominated by a few large firms that concentrate on cost-advantages obtained by high-volume production of standardized products; and (3) a specific phase when the rate of product and process innovations declines.

See also Schmenner (1986), who developed a similar model showing how service businesses move diagonally within a service-process matrix. In his inversion of the PPM, improvements in productivity are gained by moving from a bottom right (high customization and high labor intensity) to a top left quadrant (low customization and low labor intensity).

But these two fast food chains have traditionally followed slightly different strategies. McDonalds ‘produce to inventory’ by offering standardized products using automated assembly processes. Burger King ‘produce to order’ offering a little more flexibility and customization by cooking hamburgers in response to individual orders, allowing customers to select their own pickles, onions and condiments. The customer’s perception is the main difference between these two service offerings. Burger King tried to change the customers’ perceptions by offering product or service options that had little impact on the process.

Gerstner’s (2002) account of this move highlighted his previous experience as a large customer of IBM’s when he was at American Express. As a customer of IBM’s who relied on information technology as a key part of Amex’s operations, Gerstner well knew how complicated the IT world was. From his experiential (aka tacit) knowledge, he knew the potential value IBM could deliver to its customers by helping customers accomplish their mission critical tasks in this bewilderingly complex environment.

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Titel: Advancing Services Innovation service innovation
verfasst von: Henry Chesbrough
Andrew Davies
Verlag: Springer US
Buch: Handbook of Service Science
Print ISBN: 978-1-4419-1627-3

Electronic ISBN: 978-1-4419-1628-0

Copyright-Jahr: 2010
DOI: https://doi.org/10.1007/978-1-4419-1628-0_25

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