The Handbook of Service Innovation
Renu Agarwal Willem Selen
Göran Roos Roy Green
•
•
Editors
The Handbook of Service
Innovation
123
Editors
Renu Agarwal
University of Technology Sydney
UTS Business School
Ultimo, NSW
Australia
Göran Roos
University of Technology Sydney
UTS Business School
Ultimo, NSW
Australia
Roy Green
University of Technology Sydney
UTS Business School
Ultimo, NSW
Australia
Willem Selen
School of Business
Faculty of Arts and Business
University of the Sunshine Coast
Maroochydore, QLD
Australia
ISBN 978-1-4471-6589-7
DOI 10.1007/978-1-4471-6590-3
ISBN 978-1-4471-6590-3
(eBook)
Library of Congress Control Number: 2014951143
Springer London Heidelberg New York Dordrecht
© Springer-Verlag London 2015
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Endorsements
Bringing together the wide and diverse field of service innovation into a single,
comprehensive and insightful text is a daunting challenge. Yet this is exactly what
the Handbook of Service Innovation does. A great and compelling read, which I
wholeheartedly recommend.
Professor Andy Neely
Director, Cambridge Service Alliance
University of Cambridge, UK
This is a hugely important topic and this handbook containing chapters from some
of the leading academics and practitioner in the field. Service innovation
encapsulates much of the work on management practices and productivity. As the
modern world increasingly focuses on services long-run growth is going to come
from innovation in their delivery, both product and process innovation. This book
provides an ideal map for researchers to get up to speed on the latest work and
thinking.
Professor Nicholas Bloom
Professor of Economics, Stanford University, California, USA
Senior Associate of the Centre for Economic Performance
London School of Economics, London, UK
The nature of service innovation continues to evolve as service offerings dominate
over product offerings in developed economies around the world. Today making
sense of service innovation is a top priority in industry, academia, government, and
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Endorsements
the social sectors. The Handbook of Service Innovation provides a up-to-date set of
concepts, examples, and perspectives on this intellectual deep and economic
significant area of research, practice, education, and policy.
Dr. James (“Jim”) C. Spohrer
Director, IBM University Programs (IBM UP) and Cognitive Systems Institute
IBM Research—Almaden, San Jose, USA
The mechanisms by which services can innovate seem almost as numerous as the
array of services themselves. And, the numbers of each are destined to grow as the
percent of the workforce in service jobs continues to increase. The editors of this
volume have ranged far and wide to provide us with some of the best current
thinking on service innovation—how it happens, where it happens, and how it can
be managed most appropriately. These articles illustrate the many ways in which
services interact with our lives and the ways our lives interact with services—to
change them and to improve them.
Professor Roger W. Schmenner
Professor Emeritus of Operations Management
Kelley School of Business, Indiana University, USA
In this era of unparalleled service innovation, it is more vital than ever that we
understand how to innovate and what makes service innovations successful. From
high-tech services to hospitality to industrial and mass services, innovation is the
key to competitive success, and this book is testimony to its importance and
complexity. This collection of interesting new research provides many compelling
insights and managerial prescriptions that should help both academic and
practitioner audiences better appreciate the design, development, and management
of service innovation, and improvement of service businesses and processes.
Professor Craig Froehle
Professor, Operations & Business Analytics
University of Cincinnati, Ohio, USA
In many economies, the service sector accounts for the majority of economic value
added today. And while services’ economic importance is growing, the number of
settings in which they are delivered is increasing as well. This means that no
longer only pure service firms have to think about their capabilities for service
innovation, but also government agencies and many industrial firms that are
developing explicit service offerings and product service bundles. In addition,
services are increasingly created and offered within complex networks and “ecosystems”—often across industry borders and applying advanced information and
Endorsements
vii
communication technology. This adds additional challenges and complexity for
today’s service managers. A key strength of the ‘Handbook of Service Innovation’
is its integration of numerous perspectives and backgrounds in the discussion of
service innovation. Aspects covered include managerial challenges and capability
building, the interplay of service innovation and technology, the roles of design
and creativity, and collaborative innovation. This integrative and practice-oriented
approach make the handbook an important asset for managers in any kind of
service organisation.
Dr. Gerhard Satzger
Director, Karlsruhe Service Research Institute
Karlsruhe Institute of Technology (KIT)
Englerstrasse, Karlsruhe, Germany
This Handbook deals with a most elusive yet real and important issue of
innovation in services. It covers a wide array of issues and topical themes, not least
open innovation, servitisation, frugal service innovation and co-creation. It looks
at a wide variety of sectors in the private sphere but also at the public sector and
Universities. It combines theory, practice, prescription, capability requirements
and design. Despite its apparent diversity, the volume is coherent and well
integrated. Overall this is quite impressive feat, in general and given the
importance of services and intangible assets in today’s semi-global economy, in
particular. A must read for students, scholars and practitioners alike, the editors are
to be congratulated for making this happen.
Professor Chris Pitelis
University of Bath, and Queens’ College
University of Cambridge, UK
As a product developer, and as an educator of future product developers, I’m
truly delighted to learn about the Handbook of Service Innovation. Service
design and innovation aspects have become more and more important
component of any new product development initiative. Without exception,
our partners in manufacturing industry with B2B products are showing strong
interest in services. The Handbook of Service Innovation will be warmly
welcomed by a wide audience.
Professor Ekman Kalevi
Director, Design Factory and Professor
Aalto University School of Science and Technology
Finland
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Endorsements
Services innovation is an important field of study. This Handbook contributes to
the growing literature that explains innovation in services, its nature, processes and
outcomes.
Professor Mark Dodgson
Director, Technology and Innovation Management Centre
University of Queensland Business School
Brisbane, Australia
This is a comprehensive and stimulating compilation devoted to service
innovation. It gives an excellent overview of the current state of underpinning
Service Innovation for global economy.
Professor Haluk Demirkan
Professor of Digital Service Innovation & Business Analytics
Founder & Executive Director of Center for Information Based Management
Milgard School of Business
University of Washington—Tacoma, USA
Co-Founder & Board of Director
International Society of Service Innovation Professionals
(www.issip.org);
Track Chair for Analytics
Mobile & Service Science at HICSS
(www.hicss.hawaii.edu/)
The field of service innovation and services sciences is expanding at a rapid rate.
The academic work and research is helping bring clarity to the new economic logic
of a services based economy. This new logic is proving to be dramatically different
from a product and consumption based economy. The Handbook of Service
Innovation is an excellent collection of the latest thinking in the field. The diverse
and cross-discipline nature of the topics covered in the handbooks reflects the
expanding scope and breadth of service innovation.
Greg Oxton
Executive Director, Consortium for Service Innovation
California, USA
The Australian Services Roundtable (ASR) applauds the creation of the Handbook
of Service Innovation which provides a comprehensive update and set of insights
around the very important issue of driving higher levels of innovative outcomes in
the services economy. ASR notes that service industries account for 70 % of world
Endorsements
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gross domestic product (GDP) and employ about 3.2 billion people. The detailed
study of innovation in services has historically been lacking and this Handbook is a
highly significant resource for private and public sector services professionals
alike.
Services is ultimately a “people-to-people” endeavour and this important
dimension is explored extensively in the Handbook. ASR is very pleased to
endorse this important work and hopes that it provides a springboard for further
research developments and improved outcomes.
Ian Birks
CEO, Australian Services Roundtable
Canberra, Australia
The Handbook of Service Innovation is a must read for service managers and
senior executives. It provides a comprehensive perspective on the challenge of
service innovation. The book carefully addresses each aspect of service
innovation. It addresses the true import of service innovation, provides an
extensive literature review, identifies the skills and capabilities underpinning
service innovation, explores governance and organizational structure that impinge
on this challenge, and presents novel thinking on designing and managing service
innovation. For the astute reader, this book will also open up new avenues for
thinking about the application for service innovation thinking. The book spans
organizational settings in both the public and private sectors, while also drawing
on international experience.
Professor Aditya Ghose
FIEAust, President, Service Science Society of Australia
Director, Decision Systems Lab
School of Computer Science and Software Engineering
University of Wollongong
Wollongong, Australia
Productivity growth in the service sector has lagged far behind manufacturing
despite its growing dominance in terms of GDP and employment in a vast many
of the leading national economies. It is well understood that the key to service
productivity growth is innovation and new models of designing, implementing, and
delivering services. This handbook of service innovation edited by Dr. Agarwal,
and Professor Selen, Roos, and Green is put together in this spirit. It addresses a
range of important themes that bear strongly on service innovation. These include
open innovation and crowdsourcing, servitization, semantic and service web,
sustainable and frugal service design, and creativity and community engagement,
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Endorsements
among others. The chapters in this volume taken together provide an original
perspective on service innovation and offer useful guidelines for promoting greater
innovativeness at every stage of the service life cycle.
Professor Joseph G. Davis
Professor of Information Systems and Services
The University of Sydney
Sydney, Australia
In this book, Agarwal, Selen, Roos and Green present a breadth of diverse topics
necessary to gain practical insight into designing, managing and growing complex
innovative services that benefits businesses and society. Drawing on latest
research, and best practices, The Handbook of Service Innovation is a must read
for those seeking to learn more about skills and capabilities needed to stay
competitive in our growing service economy in the 21st century.
Yassi Moghaddam
Executive Director, International Society of Service Innovation Professionals
California, USA
Preface
Service innovation is about more than the technical or mechanical processes that
drive the creation of new ways of fulfilling the demands and needs of society as a
whole. It incorporates that elusive element that Carl Jung refers to, where “The
creation of something new is not accomplished by the intellect, but by the play
instinct arising from inner necessity. The creative mind plays with the object it
loves”.1 This, in a succinct manner, encompasses the kernel at work in service
innovation—that it is driven by the implicit process to improve, create, and utilize
both tactile and intangible processes, services, and products. Aligned with the
instinct, passion, and drive to improve what we as human beings come across,
service innovation is an inherent part of life. To this end the collection of chapters
here explore this in all its dimensions.
With services creating most of the wealth and employment in most emergent
and advanced economies, fostering and managing service innovation exhibits
unique challenges. This is particularly true if productivity improvement in services is to keep up with the long-lasting productivity improvement in manufacturing. These challenges pose new and interesting phenomena and call for new
perspectives to be brought into focus. Service innovation is not limited to the
service innovative process itself, but also involves our subtle responses and
unspoken practices that accommodate, facilitate, and accelerate it. This multitude
of perspectives and meanings shaping service innovation is what this Handbook
explores in greater depth. The Handbook of Service Innovation takes the reader
into deeper terrain to create insights into how we can explore some of these
intricate aspects that define different forms of innovation, from the prosaic and
beyond. Inexorably, this entails examining the specific nature of service innovation in order to unravel its complexities. By covering a breadth of topics, the
Handbook provides an overview of how to build skills and capabilities to better
design innovative services. An important facet of this process includes the
1
Hillman J (1997) The myth of analysis. Northwestern University Press, Evanston, IL, p. 48.
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Preface
challenges faced by management related to the new ways in which service
innovation is undertaken, including its international dimensions.
The Handbook brings together the latest academic research and management
practice on innovation in services, with contributions from leading researchers,
practitioners, and thought leaders in the field, who provide in depth and practical
insights into designing and managing innovation in services. This is achieved through
cutting-edge research contributions, practical examples and implementations, and
select cases. The Handbook takes the reader into alternative and varied views of
innovation, while introducing recent and emerging technological developments, both
in private and public service settings.
The Handbook is organized into seven parts that draw together the critical
themes, or backbone, of service innovation. These parts cover a range of topics,
both emergent and traditional. Our aim is to highlight core issues in service
innovation as well as explore the novel approaches, integration, and understanding
within specific contextual frameworks. In doing so, the Handbook provides a
pragmatic approach to understanding service innovation on many different levels.
The Handbook starts with the theme Innovation Definitions, Governance
Structure, and Literature in Part I. Before one can effectively and efficiently design
and manage service innovations, it is paramount to first get an understanding of
different types of innovation and degree of innovativeness.
In “Innovation: A Critical Assessment of the Concept and Scope of Literature”
Baunsgaard and Clegg put forward the argument that service innovation is not
taken up in the literature in a consistent manner, and inherent issues with defining
innovation results in noncumulative and noncomparable studies that affect how
innovation is researched. This is a critical concept in understanding the disparate
nature of service innovation studies, and the Handbook takes the reader on a
journey to align themes and concepts around the topic through the subsequent
chapters.
In “Service Innovation: A Review of the Literature”, Randhawa and Scerri outline a literature review that takes a significant step into integrating some of the
streams of service innovation, showing its multidisciplinary aspects. In “Open
Service Innovation: Literature Review and Directions for Future Research”, Alexiev
et al. explore how prospective research can encompass antecedents at the alliance-,
alliance portfolio-, and alliance-network levels to enhance our understanding of
service innovation. They call for an integrative model to propel future research, and
provide a basis for developing such a model.
The Handbook then turns to co-creation and its relationship to service innovation
in “Towards an Understanding of Open Innovation in Services: Beyond the Firm
and Towards Relational Co-creation”, with Edwards et al. comparing existing open
innovation frameworks, and proposing a co-creation approach to open service
innovation.
Highlighting the complexities inherent in service innovation, Janssen et al.
discuss a multidimensional approach in “Exploring a Multidimensional Approach
to Service Innovation”. By using survey-data from over 300 firms, the authors
operationalize a multidimensional conceptualization of service innovation.
Preface
xiii
In “Innovation, Service Types, and Performance in Knowledge Intensive
Business Services”, Campagnolo and Cabigiosu explore Knowledge-Intensive
Business Services (KIBS), and argue that not only innovation and customization are
complementary in KIBS, but also that replication via standard and modular services
determines a KIBS firm’s performance. This chapter completes Part I by gathering
the strands around the literature and structures providing a firm foundation for the
key themes to be explored in the Handbook.
The second theme the Handbook explores relates to Skills and Capability
Building in Service Innovation, discussed in Part II.
Roth develops a conceptual framework that helps firms to evolve crucial
competences for a systematic service innovation process in “On the Way to a
Systematic Service Innovation Competency Framework”. The service-dominant
logic and the competence-based perspective are used as theoretical foundations for
this competency-based framework.
“Service Innovation Capabilities for Idea Assessment: An Appraisal of
Established and Novel Approaches” provides an overview of the concept of idea
assessment in services research. Here, Feldman and Kohler explore a case study of
a German financial service provider, and introduce the concepts of serious games
and crowdfunding as approaches to tease out issues of assessing service ideas.
Hasu et al. cover the topic of integration of user-based and employee-driven
perspectives in innovation in “Employees and Users as Resource Integrators in
Service Innovation: A Learning Framework”. The authors suggest a new integrated
approach by analyzing the user–employee interaction in innovation, both theoretically and in two empirical cases.
In “Foresight and Service Design Boosting Dynamic Capabilities in Service
Innovation”, Ojasalo et al. take up the concept of futures thinking and design
thinking, and how these facilitate service innovation from the dynamic capabilities
point-of-view. This chapter provides a valuable conceptual framework for service
innovation that is grounded on concepts of foresight and service design.
The Handbook then returns to the topic of KIBS in “Employment and Skill
Configurations in KIBS Sectors: A Longitudinal Analysis”, where Consoli et al.
explore the topic from an alternative angle. This chapter offers a review of scholarly
perspectives on the growth trajectory of KIBS, and elaborates on an empirical
analysis to explore in detail commonalities and differences across a diverse group of
sectors.
In “Dynamic Capabilities for Service Innovation in Service Systems” Agarwal
and Selen explore the significance of the tangible and intangible aspects of service
innovation. They demonstrate the relevance of the more implicit motivators of
innovation to do with social and human capital, the more elusive aspects that play a
dominant role in productivity.
The third major theme encompasses Technological Developments in Service
Innovation, and is covered in Part III.
Nayar opens this part with a dynamic paper on the role of the emergent technology Web 3.0, or Semantic Web, in service innovation in “Role of Web 3.0 in
Service Innovation”. The semantic characteristic of Web 3.0, coupled in particular
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Preface
with the ability to harness explosive amounts of data available today, make
emerging Web 3.0 a key enabler for service innovation on a scale not seen before.
In “Service-Oriented Architecture as a Driver of Dynamic Capabilities for
Achieving Organizational Agility”, Luthria and Rabhi examine the conduits
through which Service-Oriented Architectures (SOAs) may exert influence on
dynamic capabilities within firms, and then empirically investigate this relationship
in the context of organizations.
The topic of healthcare is critical in economies that deal with more efficient ways
of administrating and providing services in this sector. Jung and Padman explore
innovative, disruptive models of health care delivery in “Disruptive Digital
Innovation in Healthcare Delivery: The Case for Patient Portals and Online Clinical
Consultations”. This framework provides a large departure from previous ways of
understanding the health system, and hints at a massively improved system through
patient engagement.
In the concluding chapter for this part, “Technology-Driven Service Innovation
in the Banking Industry”, Bajada and Trayler present an overview of the banking
industry and examine the landscape of service innovation as shaped through the
arrival of new technologies and deregulation of the Australian banking sector in the
1980s. The authors outline a number of changes in the industry that fuelled
remarkable transformation in the way consumers and businesses approach banking
through innovative services.
The Handbook goes into a fourth major theme with a focus on Designing Service
Innovation, covered in Part IV.
In “Systemic Development of Service Innovation”, Hautamäki and Oksanen
explore the intrinsic characteristics of services and service systems, and present a
systemic approach to produce service innovations.This chapter also provides
insights into design thinking and its implications to service development and radical
service innovation.
Ceschin demonstrates how Product-Service System (PSS) innovations represent
a promising approach to sustainability in “The Role of Socio-Technical
Experiments in Introducing Sustainable Product-Service System Innovations”.
Building on insights from transition studies and through an action research project,
the chapter investigates the role of design in sustainable radical service innovations.
Roos provides an overview of relevant literature on servitization in “Servitization
as Innovation in Manufacturing—A Review of the Literature”, exploring its
dynamic nature. More and more servitization is becoming an essential part of
strategy for manufacturing firms. The literature shows that the transformation process into a servitized manufacturing firm is a multifaceted, complex, but fertile
terrain.
In “The Architecture of Service Innovation”, Moustafellos discusses the field of
service design through an architectural approach, where the reader is taken through
architectural lessons from the classic Greeks and Romans, demonstrating how
service design of classic infrastructures provide useful criteria for approaching and
assessing services today.
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xv
In “Innovation or Resuscitation? A Review of Design Integration Programs in
Australia”, Cys and Andrew explore how design-integration programs have been
established and supported by governments of nations around the world. This
chapter reviews four government-supported programs in Australia, aiming to
integrate design capabilities to stimulate business innovation and contribute to
economic growth.
Chew in his “Service Innovation Through an Integrative Design Framework”
outlines how at its core customer-centric service innovation in an increasingly
digital world, is simultaneously technology-enabled, human-centered, and processoriented. Chew argues that service innovation requires a cross-disciplinary, holistic,
and end-to-end approach to New Service Design and Development (NSD).
The emerging concept of circular economy and its relevance to service innovation is a topic covered by Roos and Agarwal in “Services Innovation in a Circular
Economy”. An in depth literature review highlights the significance of the circular
economy which shows how revisiting this concept first developed in the 1960s
could assist in addressing complex global challenges. This chapter provides a new
focus to service innovation as it necessitates the development of an appropriate
business model framework for firms engaging in service innovation and delivery
within a circular economy framework.
The fifth theme of the Handbook draws together papers on Management Issues
in Service Innovation, discussed in Part V.
In “Illuminating the Service Provider’s Strategic Mandate on Realizing Apt
Quality and Value Through Service Innovation”, Menor highlights how the pursuit
and achievement of success in service innovation constitutes a critical strategic
imperative for many organizations. The author takes the reader through empirical
findings, obtained through field-based examination of innovative initiatives of
North American symphony orchestras.
Holmlid et al. explore the intricate mechanism of co-creative practices that can
be used for the purpose of service innovation in “Co-creative Practices in Service
Innovation”. The authors highlight the open-ended exploration practices familiar to
designers, in which the practice of identifying problems goes hand in hand with
creating solutions. The basis for exploration in this chapter is the engagement of
people in reflective and creative dialogs, and to situate activities in order to set
frames for reflection.
In “Managing Online User Co-creation in Service Innovation”, Bengtsson and
Ryzhkova present a framework of capabilities and related management practices to
the effective management of different types of online service innovation tools. In
“Practices for Involving Organizational Customers in Service Innovation”, Korhonen
and Kaarela apply previous research into Service-Dominant (S-D) logic and open
innovation in order to study the practices for involving organizational customers in
service innovation. The authors look at empirical research, based on case studies on
six globally operating technology companies known for their innovativeness and
service-oriented business with their organizational customers.
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Preface
The Handbook turns to the international arena in its sixth theme, with a unique
set of papers focussing on the International Dimensions of Service Innovation,
covered in Part VI.
In “Services Offshoring: Location Choice and Subnational Regional Advantages
in China”, Tan and Chen examine the patterns of distribution of offshoring activities
and determinants of the location selection at the city level. The chapter describes an
empirical study that confirmed that the location of offshoring of services firms in
China is highly influenced by location-specific factors, in particular the presence of
a large educated workforce in the city.
“Innovative Strategies in Servicing International Markets from Ireland” explores
the innovative evolution of Ireland’s internationally traded services sector in the
context of the increased significance of servicing international markets by foreign
companies in Ireland. Grimes and Collins highlight in this chapter how innovative
tax policies, together with innovative managerial practices such as transfer pricing,
have enabled multinational subsidiaries in Ireland to evolve their operation more
globally, as well as remain profitable in a relatively high-cost location.
In “Leveraging Value Across Borders—Do ‘Market Place Interactions’ Trump
‘Market Space Transactions’?: Evidence from Australian Firms in Industrial
Markets”, Jack describes an exploratory case study of four Australian firms,
operating in industrial markets, to assess the use of service innovative technologies
in the delivery of supplementary services to international clients.
Since the outbreak of the Global Financial Crisis (GFC), businesses and governments in developed economies are more focused on sustainable affordability.
In “Frugal Services Innovation—Lessons from the Emerging Markets and
an Adoption Framework for First-World Corporations and Governments”,
Sivaprakasam and Srinivasan provide a framework based on lessons in frugal
innovations derived from emerging market experiences. Such lessons from
emerging countries are important to foster a continuous and sustainable innovation
approach, and also help businesses and governments in developed economies stay
relevant to their stakeholders.
In the concluding theme, the Handbook focusses on Service Innovation in the
Government Sector, discussed in Part VII.
Jappinen addresses the management of the service innovation process in the
public sector in “How to Manage a Service Innovation Process in the Public Sector:
From Co-Design to Co-Production”. This chapter explores how the local government sector can use change management to better benefit from user-driven innovation in public sector renewal. Empirical data were drawn from the Finnish
Customer-oriented Service Network Project in Helsinki, referred to as the Lauttasaari Project, which is discussed in detail in terms of change management,
decision making, and innovation management.
In “Innovating Universities: Technocratic Reform and Beyond”, Reiger et al.
critically examine innovations and ‘reforms’ in university service provision and
their management, focusing on Australia as illustrative of broader global trends
associated with the integration of higher education into the international market
economy. The authors suggest that dominant approaches to university ‘reform’ risk
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xvii
to diminish the creativity and critical investigation skills required for these institutions to advance service innovation and emerging forms of society, beyond
popular beliefs of becoming a ‘knowledge-based’ and ‘service-oriented’ economy.
In “Business Model Approach to Public Service Innovation” Katsigiannis et al.
present a dynamic approach for the public sector to incorporate a new ‘business
model’. This chapter creates dialog around the challenges facing public sector
decision makers, and allows for a better understanding in how to manage public
service innovations.
“Exposing an Economic Development Policy Clash: Predictability and Control
Versus Creativity and Innovation” concludes the Handbook, where Andrew
explores the tangle of academic discourse, policy rhetoric, and government programs aimed to support innovation through a case study of South Australia’s
strategic plan, and the agencies charged with fostering and supporting innovation in
the state.
As discussed above, the Handbook draws from a large tract of information and
knowledge on service innovation, and targets many audiences because of its
comprehensive coverage of the subject area. Managers, public sector officials, and
practitioners may benefit from the many practical examples and case studies, as
well as management frameworks based on a well-covered theoretical background,
reinforced by empirical results from industry and public sectors.
Researchers and academics may refer to the vast literature exposed on the topic
of service innovation, as well as the discussion of numerous areas for further
investigation as future research topics. Finally, students can use this Handbook to
familiarize themselves about the nature, complexities, and opportunities of welldesigned innovations in services, in both private industry and public sector settings.
In an era where technological advances propel the facilitation of improvements
and fast absorption of not only the service, but also our inherent beliefs around what
service signifies, this Handbook serves as a guide. After all, service in itself
encompasses the complexities of the human psyche and its placement in vaster
societal backdrops.
In the end of the Handbook, the Epilog provides a current status of the latest
thinking in service innovation, and sets out a blue print for understanding service
innovation to a more attuned level. We wish you a productive journey in your
reading through the various themes covered in this text.
Renu Agarwal
Willem Selen
Göran Roos
Roy Green
Acknowledgment
We wish to acknowledge the substantial contribution made by Dr. Alex Pitsis and
Ms. Carolyn Stonham in reviewing, providing helpful comments and suggestions,
and editing the chapters of this book. We are grateful to our colleagues who
provided feedback for the development of this handbook and also to the UTS
Business School, University of Technology Sydney, and the School of Business,
University of the Sunshine Coast, Australia for their overall support.
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Contents
Part I
Innovation Definitions, Governance Structure, and Literature
Innovation: A Critical Assessment of the Concept and Scope
of Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Vibeke Vad Baunsgaard and Stewart R. Clegg
Service Innovation: A Review of the Literature. . . . . . . . . . . . . . . . . .
Krithika Randhawa and Moira Scerri
Open Service Innovation: Literature Review and Directions
for Future Research. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alexander Alexiev, Brian Tjemkes, Marc Bahlmann,
Ard-Pieter de Man and Hajar Siamar
Towards an Understanding of Open Innovation in Services:
Beyond the Firm and Towards Relational Co-creation . . . . . . . . . . . .
Melissa Edwards, Danielle Logue and Jochen Schweitzer
Exploring a Multidimensional Approach to Service Innovation . . . . . .
Matthijs Janssen, Carolina Castaldi, Alexander Alexiev
and Pim Den Hertog
Innovation, Service Types, and Performance in Knowledge
Intensive Business Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diego Campagnolo and Anna Cabigiosu
5
27
53
75
91
109
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Part II
Contents
Skills and Capability Building in Service Innovation
On the Way to a Systematic Service Innovation Competence
Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Angela Roth
127
Service Innovation Capabilities for Idea Assessment:
An Appraisal of Established and Novel Approaches . . . . . . . . . . . . . .
Niels Feldmann and Marc Kohler
145
Employees and Users as Resource Integrators in Service
Innovation: A Learning Framework . . . . . . . . . . . . . . . . . . . . . . . . . .
Mervi Hasu, Marja Toivonen, Tiina Tuominen and Eveliina Saari
169
Foresight and Service Design Boosting Dynamic Capabilities
in Service Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Katri Ojasalo, Minna Koskelo and Anu K. Nousiainen
193
Employment and Skill Configurations in KIBS Sectors:
A Longitudinal Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Davide Consoli, Dioni Elche and Francesco Rullani
213
Dynamic Capabilities for Service Innovation in Service Systems . . . . .
Renu Agarwal and Willem Selen
Part III
237
Technological Developments in Service Innovation
Role of Web 3.0 in Service Innovation . . . . . . . . . . . . . . . . . . . . . . . .
Ranjith Nayar
253
Service-Oriented Architecture as a Driver of Dynamic
Capabilities for Achieving Organizational Agility . . . . . . . . . . . . . . . .
Haresh Luthria and Fethi A. Rabhi
281
Disruptive Digital Innovation in Healthcare Delivery:
The Case for Patient Portals and Online Clinical Consultations . . . . . .
Changmi Jung and Rema Padman
297
Technology-Driven Service Innovation in the Banking Industry . . . . . .
Christopher Bajada and Rowan Trayler
319
Contents
Part IV
xxiii
Designing Service Innovation
Systemic Development of Service Innovation. . . . . . . . . . . . . . . . . . . .
Antti Hautamäki and Kaisa Oksanen
349
The Role of Socio-Technical Experiments in Introducing
Sustainable Product-Service System Innovations . . . . . . . . . . . . . . . . .
Fabrizio Ceschin
373
Servitization as Innovation in Manufacturing—A Review
of the Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Göran Roos
403
The Architecture of Service Innovation. . . . . . . . . . . . . . . . . . . . . . . .
James Moustafellos
Innovation or Resuscitation? A Review of Design Integration
Programs in Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Joanne Cys and Jane Andrew
437
457
Service Innovation Through an Integrative Design Framework . . . . . .
Eng K. Chew
481
Services Innovation in a Circular Economy . . . . . . . . . . . . . . . . . . . .
Göran Roos and Renu Agarwal
501
Part V
Management Issues in Service Innovation
Illuminating the Service Provider’s Strategic Mandate
on Realizing Apt Quality and Value Through Service Innovation . . . .
Larry J. Menor
523
Co-creative Practices in Service Innovation. . . . . . . . . . . . . . . . . . . . .
Stefan Holmlid, Tuuli Mattelmäki, Froukje Sleeswijk Visser
and Kirsikka Vaajakallio
545
Managing Online User Co-creation in Service Innovation . . . . . . . . . .
Lars Bengtsson and Natalia Ryzhkova
575
Practices for Involving Organizational Customers
in Service Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Heidi M.E. Korhonen and Ilari Kaarela
591
xxiv
Part VI
Contents
International Dimensions of Service Innovation
Services Offshoring: Location Choice and Subnational Regional
Advantages in China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hao Tan and Stephen Chen
621
Innovative Strategies in Servicing International Markets
from Ireland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Seamus Grimes and Patrick Collins
641
Leveraging Value Across Borders—Do ‘Market Place
Interactions’ Trump ‘Market Space Transactions’?:
Evidence from Australian Firms in Industrial Markets . . . . . . . . . . . .
Robert Jack
Frugal Services Innovation—Lessons from the Emerging Markets
and an Adoption Framework for First-World Corporations
and Governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shankar Sivaprakasam and Ravi Srinivasan
Part VII
663
683
Service Innovation in the Government Sector
How to Manage a Service Innovation Process in the Public Sector:
From Co-Design to Co-Production . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tuula Jäppinen
707
Innovating Universities: Technocratic Reform and Beyond . . . . . . . . .
Kereen Reiger, Toni Schofield and Margaret Peters
727
Business Model Approach to Public Service Innovation. . . . . . . . . . . .
Tony Katsigiannis, Renu Agarwal and Kai Jin
751
Exposing an Economic Development Policy Clash: Predictability
and Control Versus Creativity and Innovation . . . . . . . . . . . . . . . . . .
Jane Andrew
779
Epilogue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
803
Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
805
Authors’ Biography
Renu Agarwal is a Senior Lecturer in Innovation and Service Operations Management at UTS Business. Renu has extensive industry experience and in her
current faculty position, Renu provides leadership in the disciplinary fields of
service innovation, service value networks, supply chain management, dynamic
capability building, management practices, management education, and innovation
and productivity. She has been instrumental in managing several federal and state
government project grants on management practices for both Australia and New
Zealand working in collaboration with London School of Economics, McKinsey
and Stanford University. Currently, Renu is involved in the Australian Leadership
capability Standard and the Regional High Performance Networks Programs,
Centre for Workplace leadership, as well as Service Innovation: developing business models for future Value Chains theme, part of the Wealth from Waste CSIRO
Flagship Cluster project. Renu has published in top tier international journals which
include the Decision Sciences, International Journal of Production Economics,
Education + Training Journal, International Journal of Operations Management,
and International Journal of Production Research.
Alexander Alexiev is Assistant Professor in Strategic Management and Innovation
at VU University Amsterdam and fellow of the Amsterdam Centre for Service
Innovation (AMSI). At VU University he teaches courses on services management
and behavioral strategy. His main research focus is on the organizational and
management aspects of the use of advice in strategic decision making. He studies
service innovation in the contexts of professional service firms, cultural organizations and new ventures. He obtained his Ph.D. from the Rotterdam School of
Management, Erasmus University.
Jane Andrew is an educator and researcher working at the University of South
Australia’s School of Art, Architecture, and Design. Jane’s research and practice
focus on collaborative practice, implementing trans-disciplinary projects and
research in which artists, architects and designers are considered more than aesthetic afterthought in addressing environmental, social, economic and cultural
issues faced by individuals communities and governments. It is this philosophy and
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Authors’ Biography
ability to work across the praxis of teaching and learning, research, and industry
that Jane seeks to instil through her industry and community engagement activity,
as well as in her teaching.
Marc Bahlmann is Assistant Professor at VU University Amsterdam, Faculty of
Economics and Business Administration. Dr. Bahlmann received his Ph.D. from the
Faculty of Social Sciences (VU University), for a study on knowledge dynamics
among IT-entrepreneurs located in the Amsterdam-based IT and new media-cluster.
His current research interests include alliance portfolio’s, innovation and regional
innovation, with a specific interest in ego-centric network configuration.
Christopher Bajada is an Associate Professor of Economics and Associate Dean
(Teaching and Learning). He started his teaching career at the University of New
South Wales, from which he holds a Ph.D. He has taught economics in a variety of
undergraduate and postgraduate courses, with his most recent teaching experience
being in applied microeconomics. In recognition of his teaching, Chris was awarded
the University of Technology Teaching Excellence Award and Team Teaching
Award as well as the Carrick Institute (now the Office of Learning and Teaching)
Teaching Award for Outstanding Contributions to Student Learning in Higher
Education. Chris’s research is primarily in applied macroeconomics, with a special
interest in tax compliance. He has worked with the Australian Taxation Office as a
member of the Cash Economy Task Force, as a member of the Economics Society
of Australia and more recently on the expert advisory panel on the development
of the Economics Learning Standards for Australian Higher Education.
Vibeke Vad Baunsgaard is an Honorary Research Associate at the Centre for
Management and Organisation Studies, University of Technology Sydney. She
holds a Ph.D. from Copenhagen Business School and a Master of Science in
Sociology from the University of Copenhagen. She has formerly done research
in the area of political sociology. In recent years she has researched social practice
in innovation and management processes and developed a theory of Dominant
Ideological Modes of Rationality-concerning power relations, professional identities and rationalities. She has published on these issues in Organization Studies and
in Research in the Sociology of Organizations with co-author Stewart Clegg.
Lars Bengtsson is a Professor of Industrial Engineering and Management at Lund
University and at the Blekinge Institute of Technology, Sweden. He holds a Ph.D.
from the School of Economics and Management, Lund University, Sweden. He has
published some 70 books, book chapters and journal articles on innovation, academic entrepreneurship, internationalization and strategic management issues.
Journal articles have been published in journals such as European Management
Journal, International Journal of Information Management, Journal of Technology
Transfer, International Studies of Management and Organization, Organization
Science, and Scandinavian Journal of Management.
Authors’ Biography
xxvii
Anna Cabigiosu is Assistant Professor at the Department of Management, Ca’
Foscari University of Venice, where she teaches Strategy and Business management. She is the executive director of the CAMI center (Center for the Automotive
and Mobility Innovation) and the director of the IOS research center (Innovation
Organization and Strategy) of the Ca’ Foscari University. Her research areas
include innovation, strategy and organization design with a specific focus on the
organization of innovation in manufacturing and service firms and on the architecture of products/services. Her articles appeared in international journals such as
Organization Science and Strategic Management Journal.
Diego Campagnolo is Assistant Professor of Strategy and Business Organization
at the Department of Economics and Management “M. Fanno” of the University of
Padova, where he teaches Corporate strategy, Intercultural Management (in the
program ISPM-China at Guangzhou University) and Organization Design. He also
teaches Organization Design at Bocconi University. His research interests include
internationalization and business model evolution, organizational modularity and
innovation in knowledge intensive business services. His research appeared in
journals such as International Journal of Management Reviews and Industry &
Innovation and in books published by Edward Elgar and Palgrave Macmillan.
Carolina Castaldi is Assistant Professor at the School of Innovation Sciences,
Eindhoven University of Technology. Her research spans the economics and
management of innovation and she is particularly interested in service innovation.
Herein, her research deals mostly with the conceptualization and measurement of
service innovation.
Fabrizio Ceschin is a Lecturer in Design for Sustainability and member of the
Sustainable Design research group within the School of Engineering and Design,
Brunel University. He holds a B.Sc. and M.Sc. degrees in Industrial Design. After
graduation, in 2006, he joined the “Design and Innovation for Sustainability”
research group at Politecnico di Milano as research assistant. In 2012 he obtained
his Ph.D. degree with a dissertation on sustainable Product-Service Systems. He
was research fellow at Politecnico di Milano before joining Brunel University in
September 2012. He took part in several national and international research projects, funded by the European Commission, national institutions, small and medium
enterprises, and multinational enterprises.
Stephen Chen is Professor of International Business at the University of Newcastle. He obtained his MBA from Cranfield School of Management and his Ph.D.
in Management from Imperial College, London. He previously has taught at City
University Business School (now Cass Business School), Manchester Business
School, Henley Management College, Open University (UK), UCLA, Australian
National University and Macquarie University. His research interests include the
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Authors’ Biography
performance benefits of internationalization by firms, international alliances and
offshoring by firms. He is a member of the international Offshoring Research
Network, an international group of researchers investigating the development of
offshoring by firms worldwide.
Eng K. Chew is Professor of Business and IT Strategy at the University of
Technology, Sydney (UTS) and a part-time industry advisor. A former Chief
Information Officer of SingTel Optus, Eng has held various executive roles, over 25
years, in high-tech industries in Australia. His achievements include delivery of
several hundreds of million Australian dollars of business value through business
innovation and organizational transformation. Currently, Eng leads the Digital
Organization of the Future Research Group in UTS, and has recently published a
textbook, entitled “Knowledge Driven Service Innovation and Management”. He
received B.E. (University of Melbourne) and Ph.D. (University of Sydney).
Stewart R. Clegg is Professor and Research Director of the Centre for Management and Organisation Studies at the University of Technology Sydney, which
recently awarded him a D. Litt for a thesis titled Works/Words Of Power. He is a
Distinguished Fellow of ANZAM; A Fellow of the Australian Academy of Social
Sciences; a Fellow of Sidney Sussex College, the University of Cambridge; a
Fellow of the British Academy of the Social Sciences, and an Aston Fellow as well
as, most recently, elected as a Fellow of the Academy of Management. He is a
Visiting Professor at EM-Lyon, France; Nova School of Business and Economics in
Lisboa, Portugal, and Strategic Research Advisor, Newcastle University Business
School, in the UK.
Patrick Collins is an economic geographer who has published extensively on
local economic development. Patrick’s work has been concerned with the impact of
foreign direct investment on the Irish economy. Recently he has turned his attention
to the geography of creative economies with specific reference to peripheral areas.
Davide Consoli holds a Ph.D. in Economics of Innovation from the Centre for
Research on Innovation and Competition (CRIC), University of Manchester
(United Kingdom). Before joining the Spanish National Research Council (CSIC)
Davide Consoli was Senior Lecturer and Senior Research Fellow at the Manchester
Business School. He was also Visiting Fellow at the Universities of Turin (Italy),
Tampere (Finland) and Columbia (United States). His research agenda focuses on
the economics and management of innovation, and encompasses both qualitative
and quantitative research methods. For further information please visit his personal
webpage https://sites.google.com/site/dfconsoli/
Joanne Cys is Associate Professor in Interior Architecture and Dean: Teaching
and Learning in the Division of Education, Arts and Social Sciences at the University of South Australia. Joanne is a past National President and Life Fellow
of the Design Institute of Australia (DIA). She is an Executive Board Member
(2011-2014) of the International Federation of Interior Architects/Designers (IFI),
Australia’s representative to the Global Design Network (GDN) and the Asia
Authors’ Biography
xxix
Pacific Space Designers Association (APSDA) and from 2011-2012 was a member
of the South Australian Integrated Design Commission Advisory Board.
Ard-Pieter de Man is professor of Management Studies at the VU University
Amsterdam and dean at Sioo, centre for change management and organization
design. His work focuses on alliances and open innovation across a wide variety of
sectors. He published over 50 articles and ten books in these areas. His latest book
‘Alliances: An executive guide to designing effective strategic partnerships’
appeared in 2013.
Pim den Hertog is a senior researcher and founding partner of Dialogic Innovation & Interaction (now 25 persons) a research based consultancy in Utrecht, the
Netherlands. Over the years he was involved in numerous national and international
research and consultancy projects on (service) innovation and (service) innovation
policies. In 2008-2012 he was also a research coordinator of the Amsterdam Centre
for Service Innovation (AMSI) at the Amsterdam Business School. In 2010 he
finalized his Ph.D. thesis Managing Service Innovation. Firm-level Dynamic
Capabilities and Policy Options.
Melissa Edwards is a Senior Lecturer and early career researcher at the UTS
Business School. Her work is transdisciplinary and directed towards understanding
how people organize, learn and adapt to enact social change. She has co-developed
and managed two innovative undergraduate programs, one is a cross-disciplinary
program that challenges students to address contemporary wicked problems and to
design sustainable entrepreneurial solutions. As a founding member of u.lab she coedited and contributed to two books on design-led innovation processes and ran
applied courses, including one with the City of Sydney, to develop innovative
community projects. She conducts research that draws together sustainability,
complexity, social capital and network theories with a focus on social impact, open
innovation and new business models.
Dioni Elche is Lecturer at the University of Castilla-La Mancha (Spain) where she
gained a Ph.D. in Business Administration in 2005. She was Visiting Researcher at
Centre of Service Studies at the University of Roskilde (Denmark), Manchester
Institute of Innovation Research (United Kingdom) and Columbia University
(United States). Her main research is in the area of innovation management, with a
strong interest in Service sectors, innovation and growth of knowledge in KIBS
sectors, and industrial cluster and systems of regional innovation.
Niels Feldmann is a researcher at the Karlsruhe Service Research Institute at
Karlsruhe Institute of Technology (KIT), as well as a Senior Managing Consultant
at IBM Global Business Services. His research lies in the areas of Service Innovation and Business Model Innovation. In particular, he focuses on leveraging
entrepreneurial approaches and collective intelligence for idea management in
service firms. Before joining academia, Niels managed a unit of consultants specialised in Innovation Management at IBM Germany, and headed several service
innovation projects at companies from multiple industries and countries.
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Authors’ Biography
Roy Green is Dean of the UTS Business School at the University of Technology
Sydney. His doctorate is from the University of Cambridge, where he was also a
Research Fellow, and he has worked in universities, business and government in
Australia and overseas. He was previously Dean at the National University of
Ireland and Macquarie Graduate School of Management. Roy has published widely
in the areas of innovation policy and management and has undertaken multi-country
projects with the OECD and European Commission. Roy chaired the Australian
Government’s Innovative Regions Centre, CSIRO Manufacturing Sector Advisory
Council and NSW Manufacturing Council, and served on the Prime Minister’s
Manufacturing Taskforce, Enterprise Connect Advisory Committee and ABS
Innovation Reference Group. He conducted the Government’s review of the Textile, Clothing and Footwear industries, led Australian participation in a global study
of management and productivity, coordinated an Australian Business Deans
Council initiative on the future of management education and has co-authored
recent reports on productivity, skills and innovation. Currently, Roy is involved in
the Australian Design Integration Network, the Work Integrated Learning taskforce
of Universities Australia and a project on future prospects for the car components
sector.
Seamus Grimes is a graduate of University College Dublin, University of Ulster
and the University of New South Wales, where he completed his Ph.D. in geography. He returned to NUI, Galway in 1980 and has been teaching in the geography
department. Since the early 1990s Professor Grimes has published widely on topics
related to information technology and regional/rural development. More recently
his research has focused on the technology sector in Ireland and the emergence of
internationally traded services. Among the journals in which his papers have
appeared are: Regional Studies, Environment and Planning A, Geoforum, European
Planning Studies and Entrepreneurship and Regional Development. In addition to
his work on technology-related development issues, he has also developed a deep
interest in the philosophy of the social sciences.
Mervi Hasu Ph.D. (Adult education), is a Specialized Researcher at the Finnish
Institute of Occupational Health (FIOH). Previously, she worked in the research
group for Technology Studies at the Technical Research Centre of Finland (VTT),
and in the University of Helsinki. She has published articles on organization and
management studies, science and technology studies, and studies on human-computer interaction and learning. Her current interests include research on innovation
in various service contexts, employee-driven innovation and employee learning.
Antti Hautamäki Ph.D., now a professor emeritus, was in years 2009-2013 a
research professor of service innovation and the director of Agora Center at the
University of Jyväskylä. He is also an adjunct professor of philosophy at the
University of Helsinki. Hautamäki has published and edited about thirty books and
published two hundred articles about philosophy, cognitive science and innovation.
His latest books include Sustainable Innovation, A New Age of Innovation and
Authors’ Biography
xxxi
Finland’s Innovation Policy, 2010. Currently Antti Hautamäki is working in his
firm Consulting Sustainable Innovation.
Stefan Holmlid is Associate Professor in Interaction and Service Design at Linköping University, and also partner of the Swedish Faculty for Design Research.
His research starts out with the power of designers and users, especially concerning
expressive powers of design methods and techniques in service development and
innovation, as well as design and value-in-use. He co-founded the Service Design
and Service Innovation conference. Currently he heads the Interaction and Service
design research group at Linköping University.
Robert Jack is Senior Lecturer in International Business at Macquarie University
in Sydney, Australia where he teaches International Business Operations and
International Business Strategy. He has Masters Degrees in both Marketing and
International Business and was awarded his Ph.D. from Monash University. He
specialises in case study research and has published widely in the subject areas of
firm internationalisation and the internationalisation of services. His work has
appeared in International Business Review, International Small Business Journal
and the International Journal of Operations and Production Management. He
currently serves as Secretary of the Australia and New Zealand International
Business Academy (ANZIBA).
Matthijs Janssen is a Ph.D. candidate at the School of Innovation Sciences,
Eindhoven University of Technology, and a researcher and consultant at Dialogic
Innovation and Interaction, Utrecht. He is currently investigating the application of
evolutionary theories for creating a better understanding of service innovation
processes and output. The resulting insights, in turn, serve to position services
better in theories of industrial evolution and economic diversification. Matthijs’
(service) innovation research covers both firm-level as well as policy analyses for
national and supranational authorities.
Tuula Jäppinen works as a Senior Adviser for service innovations at the Association of Finnish Local and Regional Authorities. Her doctoral thesis in 2011 dealt
with user-driven innovation as an interaction between a local authority and a citizen
in decision-making on services and service restructuring. Her research areas are
public services, service innovation, service design and citizen participation in local
governance. For several years she has been collaborating with the service designers
and the national pioneers of service reform both at the national and at the local level
in Finnish municipalities.
Kai Jin is a Ph.D. candidate of Accounting Discipline at the UTS Business
School. His current research interests are inter-firm relationships and the use of
accounting and sustainability information in the supply chains. He is the administrator and a researcher of a multi-disciplinary, multi-year research project jointly
funded by a major Australian agriculture industry and UTS Business School.
Within the supply chain research stream he led and executed the publication of a
series of industry reports addressing the supply chain and other externally
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Authors’ Biography
embedded challenges limiting producers’ ability to gain value from their improved
sustainable practices. Prior to his research career, he worked at one of the big four
Australian banks and served as a subject matter expert in both Sydney and Bangalore offices providing assistance to a major financial service offshoring project.
Changmi Jung is Assistant Professor of Information Systems in the Carey
Business School at Johns Hopkins University. She received her Ph.D. from Carnegie Mellon University. Her main research area is health informatics, with particular focus on innovative e-Health delivery models via patient portals and online
clinical consultations. Her work explores technology adoption of innovations by
patients and organizational learning by physicians as new care delivery models are
introduced in the primary care environment.
Ilari Kaarela M.Sc. (Tech.), M.Sc. (Econ.), has worked for five years as a
Research Scientist at VTT Technical Research Centre of Finland. At VTT his work
has included research projects on open innovation, service innovation, and business
development in close contact with multiple domestic and international companies.
Kaarela also previously coordinated a multidisciplinary network of service
researchers within VTT, and participated actively in founding the Finnish Service
Alliance, a new collaborative community for service scholars and practitioners in
Finland.
Tony Katsigiannis is a member of the National Standing Committee on Policy
Submissions of the Institute of Public Administration of Australia, the national
professional association of the public sector. He has extensive industry experience
in the public, not-for-profit and commercial sectors, including 8 years in the NSW
Public Service. He has worked as a Manager of Human Resources, Business
Development and Client Relationships. He has an MBA from Macquarie University
and a Bachelor of Mathematics from the University of Newcastle.
Marc Kohler is a researcher in Service Innovation at the Karlsruhe Service
Research Institute at Karlsruhe Institute of Technology (KIT). In his work, he is
focusing on the management of service innovation capabilities and performance. In
this role, he has taken part in designing and running the institute’s Service Innovation Lab, which mediates between service science and industry through research
projects, workshops and presentations. Marc Kohler has studied Business Engineering (B.Sc.) at KIT and Strategic Entrepreneurship (M.Sc.) at the University of
Southampton, UK.
Heidi M.E. Korhonen is a professional of business development and research
with a long experience of innovative industrial and technology companies. Her
work focuses on innovation management, service business development, customer
and stakeholder orientation, value co-creation within business ecosystems, and
sustainable business strategies. She works as a Senior Scientist at VTT Technical
Research Centre of Finland. She is also finishing her doctoral dissertation on
industrial service innovation at Aalto University in Helsinki, Finland. She has
actively published in international peer reviewed journals, books and conferences.
Authors’ Biography
xxxiii
Minna Koskelo is a professional business designer specialized in understanding
how value is being created by the customers in the present and in the future. She
holds a Master’s Degree in Service Innovation and Design. For the past 11 years
she has been working in the field of strategic marketing and branding with both
B2C and B2B customers. She is also co-founder of Futures Specialists Helsinki
network. In her work she applies diverse methods from the fields of design, futures
and business thinking for creating customer, business and futures insights for
sustainable business. Today she is an entrepreneur and lecturer.
Danielle Logue is Senior Lecturer in Management at University of Technology,
Sydney. She obtained her Ph.D. in Management from Said Business School,
University of Oxford, UK, graduating with distinction. Her research focuses on the
transnational diffusion of innovations and the social construction of markets,
drawing upon a broad base of institutional theory.
Haresh Luthria is an independent consultant, focusing on IT projects primarily
for financial services companies. His academic research interests focus on bringing
together the areas of organizational management and information technology (IT).
Luthria has a Ph.D. in Information Systems from the Australian School of Business
at the University of New South Wales, and lives in the DC metro area in the United
States.
Tuuli Mattelmäki is associate professor in the Department of Design at Aalto
University School of Arts, Design and Architecture where she also leads the
engaging co-design research (ENCORE) team. She has been involved with establishing the design for services community and courses at Aalto and worked at Aalto
Service Factory as the academic community director. Her research interests focus
on empathic design, user-centred and co-design approaches and she has published
widely on these topics.
Larry J. Menor is an associate professor at the Ivey Business School at Western
University. His research primarily focuses on issues related to the process of new
service development, the operational evolution of service systems and service
operations strategy, and has been published in a variety of notable scholarly outlets
including, among others, the Journal of Operations Management, Journal of Service
Research, Manufacturing and Service Operations Management, and Production and
Operations Management.
James Moustafellos is a business strategist, designer and entrepreneur. He
co-found the Center for Design + Innovation and is Assistant Professor of
Management Information Systems at the Fox School of Business, Temple
University. Trained as an architect, he integrates design process into management
culture. He leads innovation initiatives to improve organizations, environments and
Systems for Fortune 500 companies, public sector and non-profit institutions. He
has received numerous awards and distinctions and his work is in the Philadelphia
Museum of Art and was exhibited at MoMA. He holds a Master of Architecture
degree from Princeton and Bachelor of Arts from Columbia.
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Authors’ Biography
Ranjith Nayar a Singapore-based Management Researcher with 25 years’ corporate and consulting experience in Asia, heads the Computer Aided Manufacturing department of a European high-tech firm in Singapore. He has a M.Sc. in
Computer Integrated Manufacturing (Nanyang Technological University, Singapore), and a Bachelors in Electrical Engineering (Calicut University, India). His
work on Internet evolution (pub: Springer-Verlag, 2012) was presented in the
International Conference on Technology Management, at Indian Institute of Science (IISc). Ranjith’s doctoral work focusses on impact of Social and Semantic
Webs as technology enablers in a framework to drive innovation; the Nayar-Lanvin
Innovation Framework examines the role of leadership, technology enablers and
strategy and led to the Framework of Leadership for Innovation. He has a Ph.D.
from the MLS University, India, (co-guided by the Executive Director, INSEAD
Business School), Exec. MBA in Innovation Management (Aalto University, Finland). His interests are in Innovation Management, operations Management and
Web evolution.
Anu K. Nousiainen is a professional business developer with 15 years of experience in both international corporation environment holding various positions at
Nokia and working with local organizations as a freelancer in Helsinki, Finland.
Throughout her career she has been focusing on holistic business capability and
specific offering design in strategic projects to do with new business opportunity
identification and solution creation. Her educational background is in Consumer
Marketing, Media Business, and Service Design. Today, she is lecturing,
researching and applying her multifaceted toolkit for new value creation by combining business, design and futures thinking-from strategy to practice.
Katri Ojasalo is Director of Master degree programmes at Laurea University of
Applied Sciences in Espoo, Finland. She is also Chair of the Finnish Service
Alliance. She has earlier been Professor of Marketing at Tampere University and
researcher at HANKEN Swedish School of Economics Helsinki at the CERS
Center for Relationship Marketing and Service Research. Service businesses have
been her research field for over 20 years and she has published a large number of
journal articles and also several text books. Her current research focuses on service
innovation and design.
Kaisa Oksanen is a senior scientist in VTT Technical Research Centre of Finland.
Her background is in social and political sciences and her expertise is in systemic
innovation, science and innovation policy, innovation ecosystems, service innovation and well-being. Before VTT she has worked as a research coordinator and
innovation researcher in Agora Center, University of Jyväskylä, in Finland Futures
Research Centre, University of Turku and in Aalto University. Together with Antti
Hautamäki she has authored several books and articles about innovation.
Rema Padman is Professor of Management Science and Healthcare Informatics,
Thrust Leader of Healthcare Informatics Research at iLab, and Research Area
Director for Operations and Informatics in the Center for Healthcare Analytics in
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xxxv
the H. John Heinz III College at Carnegie Mellon University, and Adjunct Professor
in the Department of Biomedical Informatics at the University of Pittsburgh School
of Medicine. Her research examines healthcare operations, analytics and decision
support in the context of information technology interventions such as ehealth and
mhealth for chronic disease care, and novel analytics to support ‘consumability’ of
healthcare data for better decision making by clinicians and consumers.
Margaret Peters is an Associate Professor at the Hawke Research Institute of the
University of South Australia (UniSA). She has recently undertaken many senior
academic roles, including Dean of Research and Research Education, Acting
Deputy Vice Chancellor and Vice President (Academic), Director of the National
Centre for Student Equity in Higher Education, elected Chair of UniSA’s Academic
Board (Senate), and membership of the university’s Council. Her publications have
encompassed national and international gendered diversity and equity issues in
public, private and not for profit organisations, as well as marginalised youth and
their involvement in creative industries and cultures.
Fethi A. Rabhi is a Professor in the School of Computer Science and Engineering
at the University of New South Wales (UNSW) in Australia. His main research
areas are in service-oriented software engineering with a strong focus on business
and financial applications. He completed a Ph.D. in Computer Science at the
University of Sheffield in 1990 and held several academic appointments in the USA
and the UK before joining UNSW in 2000. He is currently actively involved in
several research projects in the area of large-scale news and financial market data
analysis. He is a member of the Australian Computer Society (ACS), ACM and
IEEE Computer Society.
Krithika Randhawa has been a researcher on multiple research projects at the
University of Technology Sydney (UTS) including a series of management projects
in collaboration with the London School of Economics, Stanford University &
McKinsey. Krithika has successfully implemented research consultancy projects for
the Australian and New Zealand Federal Governments. Prior to this, Krithika has
eight years’ management experience in the hospitality industry with a track record
of driving a number of service improvement projects. Krithika has been a core
project team member for the launch of two luxury hotels. Krithika is currently
completing her Ph.D. at UTS in the area of open innovation in consumer
communities.
Kereen Reiger is an Australian historical sociologist who has published widely on
cultural change in families, on organisations and on the challenges of professional
work in health care and university settings. Her concern about the deteriorating
conditions of higher education reflects concern about their implications for future
generations.
Göran Roos chairs the Value Added and Industry Growth subcommittee of the
Economic Development Board of South Australia; is a member of the Council for
Flinders University, and CSIRO’s Manufacturing Sector Advisory Council. He is
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Authors’ Biography
also a Stretton Fellow appointed by the City of Playford at University of Adelaide;
Professor in Strategic Design in the Faculty of Design, Swinburne University of
Technology, Melbourne, Australia; Adjunct Professor at Mawson Institute, University of South Australia, Adelaide, Australia; Adjunct Professor at ECIC, University of Adelaide, South Australia; Australia; Adjunct Professor at University of
Technology Sydney Business School, Australia; and Adjunct Associate Professor
in the College of Business, Nanyang Business School, Nanyang Technological
University, Singapore. Göran is one of the founders of modern intellectual capital
science and a recognised world expert in this field as well as a major contributor to
the thinking and practice in the areas of strategy and innovation management as
well as industrial and innovation policy. He is a member of the editorial board
of the Journal of Human Resource Costing and Accounting; the International
Journal of Strategic Change Management; the International Journal of Learning and
Intellectual Capital and the Journal of Intellectual Capital. Göran was appointed
“Manufacturing for the Future” Thinker in Residence by the South Australian
Premier for the year 2011 and an appointed member of the Prime Minister’s
Manufacturing Leaders Group 2012/2013 and he was selected for Committee for
Economic Development of Australia (CEDA) Top 10 Speeches 2013.
Angela Roth graduated in business administration. Subsequent to her studies she
has been working at the Fraunhofer Institute for Supply Chain Services for five
years – two years of which as head of the department for Decision Support Systems.
During this period she finished her dissertation on “Modelling Warehouses in
Logistics Networks”. After that she had been research assistant at the Nuremberg
Chair of Logistics. In 2010 she finished her habilitation on “Education in Logistics
– Crucial competences for the future logistics industry”. Since 2011 she is associate
professor at the Chair for Information Systems – Innovation and Value Creation at
the University of Erlangen-Nuremberg and doing research on service innovation
and competences in service innovation.
Francesco Rullani is Assistant Professor in Entrepreneurship and Management of
Innovation at LUISS Guido Carli in Rome (IT). He has been Assistant Professor in
Management and Economics of Innovation at Copenhagen Business School (DK)
and member of the Danish Research Unit for Industrial Dynamics (DRUID). He has
worked for Fondazione ENI Enrico Mattei (IT), and received his Ph.D. from LEM
at Sant’Anna School of Advanced Studies (IT). He has been visiting fellow at
Stanford University (USA) and Bocconi University (IT). His research focuses on
organization of self-organizing groups of actors in innovation. Further information
at http://www.francescorullani.com.
Natalia Ryzhkova is a doctoral student at the Blekinge Institute of Technology,
Sweden and is presently working on her doctoral dissertation project concerning
companies’ use of, practices employed, innovation outcomes from and efficiency of
web innovation tools. She has presented her research at academic conferences such
as European Academy of Management, EGOS and OLKC as well as published her
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xxxvii
research in the journals of Innovation: Management, Policy & Practice and International Journal of Information Management.
Eveliina Saari is a Team Leader at the Finnish Institute of Occupational Health
(FIOH), the team studying innovations, management and knowledge creation at
work. Previously, she worked at the Technical Research Centre of Finland (VTT) as
a coordinator and development manager in the HRD-group, and in innovation
studies. She has published articles on developmental impact evaluation and innovation management in Finnish health care. Currently, her research interests focus on
employee-driven innovation and employee well-being.
Hajar Siamar is Business Consultant at O&i Management Consultants. She
consults organizations in the areas of organizational (re)design, organizational
processes, and optimizing business operations, often in the context of change (e.g.
reorganizations, mergers and acquisitions), using insights from the fields of business process management and change management. She also participated in
numerous innovation projects enabling organizations to achieve their digital mission. She received her master degree, Business Administration (Strategy & Organization), at the VU University Amsterdam.
Moira Scerri has over 30 years industry experience in travel and tourism, information technology, education and payment systems before coming to academia.
Moira has worked on a number of strategic technology and large scale industry and
cross industry change management projects. Moira developed and operationalised
the Service Enterprise Productivity in Action (SEPIA) and Networked Enterprise
Productivity in Action (NEPIA) which provide a generalised approach to measuring
service productivity. Moira’s research interests are service innovation, service
operations management, and service productivity and performance management.
She uses a range of methods using Data Envelopment Analysis (DEA) and Social
Network Analysis (SNA) and Simulation.
Toni Schofield Associate Professor she researches and teaches in sociology and
public policy. Her work in organisational studies has generated publications in a
variety of areas including gender equity and public policy making, prosecution and
deterrence in workplace health and safety, workforce shortages in health care, and
barriers to postgraduate study among Indigenous people. She is the author of A
Sociological Approach to Health Determinants, published by Cambridge University Press (2015).
Jochen Schweitzer is Senior Lecturer in Strategy and Innovation at the UTS
Business School and the Center for Management and Organisation Studies at the
University of Technology, Sydney. He is also the Co-founder and Director of U.lab,
a multidisciplinary innovation hub. In his research Jochen focuses on issues of
strategic management, collaboration, entrepreneurship and innovation with a special interest in design thinking, urban planning and open innovation.
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Authors’ Biography
Willem Selen is Professor of Management at the University of the Sunshine Coast,
which he joined in Jan 2014. Prior to this he held professorial and senior academic
management positions in Australia, Belgium, Saudi Arabia, The Netherlands,
TRNC, UAE, and the USA as part of his more than 30 years in academia. He holds
Bachelor and Master degrees in Commercial Engineering from Limburg University
(Belgium), and a Ph.D in Business Administration from the University of South
Carolina. Willem has a broad research interest, which includes (service) operations
management and supply chain management, and service networks and capability
building, among others. He has published widely in the supply chain and service
operations areas, and serves on the editorial board of the International Journal of
Procurement Management. Previously he served as editor and guest-editor of a
number of journals, including Journal of Operations Management. Professor Selen
has worked with numerous industry organisations, such as Opel Belgium in the
automotive sector in Europe, where he engaged in productivity improvement
projects.
Shankar Sivaprakasam is responsible for OpenText’s global premier clients in
Asia Pacific and Japan. In this role, he advises many of the Global 2000 organizations on Enterprise Information Management (EIM) and digital business enablement. He is well positioned to provide strategic insights on “digital disruption”
for governments and private sector. Shankar’s clients include mid to large companies and multinationals, spanning industries such as financial services, telecommunication, manufacturing, logistics, resources, utilities and governments.
Shankar is passionate and involved in the eGovernment and free trade initiatives in
APAC countries. Shankar graduated from the Indian Institute of Technology (IIT)
Kanpur, India, in Computer Science and Engineering and completed EMBA from
University of Technology, Sydney, Australia. He is currently pursuing his Ph.D. in
Management studies, with his research interest in Public Sector Service Innovation.
He is a board member of the Service Science Society of Australia, senior member
of the Australian Computer Society, and an advisor to startups in Australia and
Singapore.
Ravi Srinivasan brings over 25 years of leadership, executive expertise and
experience across Asia Pacific and Japan. He holds a Ph D in Business Management
from IIM, Ahmedabad and participated in Executive program from HBS. Ravi is
also a Certified Professional Coach. Ravi works with key decision makers and
leadership teams focusing on Strategy, Marketing, Innovation, Sustainability and
inclusivity. As a Certified Professional Coach Ravi has worked as executive/
business coach and a mentor both within Hewlett-Packard and externally with
clients. Currently, Ravi is an independent consultant, coach, and associated with
leading services firms. Ravi is a core member of the leading research project of IIT
Delhi, Aston University UK, University of Wisconsin, Whitewaters USA in the
areas of innovation and social entrepreneurship. He is involved in a number academic and research institutions in India and overseas. He also continues to participate in international IT and Business forums.
Authors’ Biography
xxxix
Hao Tan is a Senior Lecturer in International Business at the University of
Newcastle Australia. His research interests include geographic diversification of the
firm, offshoring location choices and the performance implications, and innovations
in the energy and resource sector. His work has appeared in academic journals
including Journal of World Business, Journal of Business Research, Industrial and
Corporate Change, Technological Forecasting and Social Change, International
Journal of Production Economics, and Energy Policy.
Brian Tjemkes holds a Ph.D. from Radboud University Nijmegen and is currently
employed as associate professor at the VU University Amsterdam. His research
interests center on alliance management, alliance portfolios, public-private partnerships, open (service) innovation, and cross-cultural research. His work has been
disseminated through various academic conferences and publications in among
other Management Decision, Journal of International Management, and Journal of
Cross-Cultural Psychology. He is co-author of the book Strategic Alliance Management. He is also co-founder and programme director of the Bussines Administration Master specialization Strategy & Organization and associate of the
Amsterdam Centre for Service Innovation.
Marja Toivonen is Research Professor at Technical Research Centre of Finland
(VTT), her specialty being service innovation and service business models. She is
Adjunct Professor at Aalto University Helsinki where she teaches a course on
service development and instructs doctoral students. She has written several articles
on service-related topics and been an invited speaker in many international conferences. She is a member of the journal Service Science and a council member of
RESER (European Association for Research on Services). Recently she worked for
the EU as a member of High Level Group on Business Services.
Rowan Trayler is Senior Lecturer in the Finance Discipline Group, UTS Business
School at the University of Technology, Sydney. Prior to joining UTS in 1987, he
worked for 16 years in the Banking and finance industry, the last 11 at Barclays
Bank Australia Limited. At UTS, Rowan has been closely involved in teaching in
the Business programs and is responsible for the coordination of the introductory
finance subject in Bachelor of Business. Rowan has a number of journal publications in banking and finance plus contributed several book chapters in international
publications. He is a co-author in an adaptation of a leading introductory finance
text for Australian.
Tiina Tuominen is a Postdoctoral Researcher at Aalto University School of Science. She holds a Dr. Sc. (Technology) degree in the field of work psychology and
leadership. She leads the Innovation Research in Services research group in the
Department of Industrial Engineering and Management. Her research interests
cover organisational and collective aspects of innovation and change, as well as
individuals’ transformative agency in the context of service organisations.
Froukje Sleeswijk Visser is assistant professor at Delft University of Technology,
Faculty of Industrial Design Engineering, The Netherlands. Her research focuses on
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Authors’ Biography
the changing roles of designers and users in design processes delivering products,
services and complex product service systems. Froukje holds a Ph.D. in Industrial
Design Engineering (Bringing the everyday life of people into design, 2009). She is
also independent design research consultant at Contextqueen.
Kirsikka Vaajakallio is senior service designer at Diagonal design agency in
Helsinki Finland. Kirsikka’s doctoral thesis titled ‘Design games as a tool, a
mindset and a structure’’ was among the first to combine service design and design
games. Kirsikka has approximately ten years’ experience in user-centric designing
as well as supporting the creative process in multidisciplinary team work through
using different types of user research and joint design methods. Kirsikka has also
worked as a researcher for design at the University of Art and Design, Helsinki/
Aalto University for nine years and taught user-centric design, both in Finland and
abroad. Kirsikka believes that service design and better understanding of users leads
to better and more functional services from both the service provider and the user’s
point of view—whether it be a large global company, small local business or public
sector organisation. Kirsikka hopes that more people will become readier to
experiment and do things differently.