Title: Services Innovation TU91.123 Strategic Management of Technology and Innovation
1Services InnovationTU-91.123 Strategic
Management of Technology and Innovation
- David Ing, IBM Business Consulting Services,
Canada - Helsinki University of Technology
- October 21, 2004
2Services innovation
- Why services?
- What services?
- Special features
- How are services different?
- Challenges of innovation
3What is the GDP Composition by Sector in various
countries?
Sources CIA Factbook
4Value capture seeks profit from customer's system
economics, before production cost
Value capture How do I capture, as profit, a
portion of the value I created for customers?
Customer needs ... some remain silent, poorly
defined, or poorly articulated
- A customer's system economics includes
- amount paid
- costs to use, store and dispose
- hassle
Value migrates from outmoded business designs to
new ones that are better able to satisfy
customers' most important priorities.
Sources Slywotsky, Value Migration Slywotsky
Morrison, The Profit Zone
5What services? / Special features
6How are services different? Challenges of
innovation
- Tangibility
- Scalability
- Call centers
- Outsourcing
- Replicability
- Inbound / outbound
- Method
- Modularity (virtual teams)
- Stickiness (knowledge work)
- Uniqueness / sustainability