Innovation in Service System Solutions

Author(s):  
Nizar Abdelkafi ◽  
Romy Hilbig

Service innovations are regarded as important drivers in the Europe 2020 Strategy. They are recognized to have a powerful potential to transform entire regions and sectors in Europe. The European Union (EU) and its member states are currently launching initiatives and programs that focus on leveraging service innovation to achieve so-called smart specialization of regions. This paper explains the transformative power of service innovation, a concept introduced recently by the European commission. First, it reviews the literature on service innovation. It concludes that service innovation is a multidimensional concept that combines offering, process, and business model innovations. It focuses, in particular, on the business model approach and introduces a new taxonomy for business models of the providers of service system solutions. Then, the paper provides an overview of selected EU initiatives and programs to foster service innovation. By means of the case of electric mobility in Germany, the authors show how business models of service system solution providers can transform model regions and sectors in the EU. The Input-Throughput-Output model is drawn to explain the transformation process due to services in the case of electric mobility in Saxony, Germany.

Systems ◽  
2019 ◽  
Vol 7 (2) ◽  
pp. 23 ◽  
Author(s):  
Wolfgang Vorraber ◽  
Dietmar Neubacher ◽  
Birgit Moesl ◽  
Julia Brugger ◽  
Sigmar Stadlmeier ◽  
...  

Digital innovation is a key success factor for business enterprises and organizations concerned with public safety. Increasingly shorter technology cycles produce a stream of highly promising gadgets and smart devices and this innovative provision opens a gap between what is currently in use for the value-creation processes of an organization and what could potentially be used. The presented framework provides guidance on how to implement dynamic capabilities needed for business model and service innovation within a complex socio-technical system. A way to combine technology and use-case sensing with the ultimate aim of creating innovative artifacts for organizations is presented. While Business Model Innovation (BMI) literature mainly focuses on a strategic top-down process, we propose a bottom-up process-driven approach to complement business frameworks. Based on these insights, new service artifacts can be designed and analyzed in a systemic way. The applied research methodology is based on the design science research concept. A qualitative approach with focus groups was used to gather user requirements and facilitate participatory and user-centered design of information systems. In this paper, we provide a framework that supports business executives as well as IT experts on how to cope with and integrate new technologies into organizations, their processes, and their business models. In addition to a comprehensive theoretical overview of the proposed framework, we also provide practical results, since this framework was applied in the course of a service design and engineering research project. A use case of alpine rescue missions serves as an example to demonstrate the practical application of the proposed framework.


2014 ◽  
Vol 6 (1) ◽  
pp. 2-16 ◽  
Author(s):  
Patrik Gottfridsson ◽  
Anna Stålhammar

Purpose – This paper is about service innovation processes and especially about how an idea about a new service proposition is realized and gradually transformed during the process. The purpose of this paper is to describe and explain the process by which the idea of what should be developed is formed. Design/methodology/approach – Empirically this study is built on two case studies from the public transport context. The cases studied are long-term and involves a number of different actors from different organizations put together to deliver a new system solution regarding information- and ticketing systems. Findings – The findings indicate that the service ideas gradually develop throughout the service innovation process; some of the changes are that distinct that they could be described as turning points. The reasons for the changes of the ideas are sometimes the renewed awareness that the involved actors get from communicating and learning from each other's, other times the turning points occur as a result form confrontation with the outside world, and what is their perceived as necessary and possible to do. Originality/value – The study is novel in several respects: the notion of the transformation of the service idea during a service innovation process is introduced; it provides an empirical analysis of the knowledge transformation process during a service innovation process, and it applies traditional innovation perspective in a new context.


2014 ◽  
Vol 29 (2) ◽  
pp. 96-111 ◽  
Author(s):  
Daniel Kindström ◽  
Christian Kowalkowski

Purpose – This article aims to investigate the nature and characteristics of business model elements required for successful service innovation. The authors examine which unique resources and capabilities product-centric firms should develop and deploy to pursue service innovation. Design/methodology/approach – Data collected from several research projects support iterations across empirical data and theory, in an abductive process. Empirical data come from product-centric firms; interviews and focus groups were the main data collection methods. Findings – Specific resources and capabilities are needed for the proposed business model elements, as defined by the overarching strategy and structure. Firms can approach the process of service innovation from different starting points and sequences, depending on the context. Research limitations/implications – Because it takes a synthesizing approach, this research lacks some detail. By taking a business model approach with a holistic perspective, it forgoes detailed descriptions to provide greater breadth. Practical implications – Managers can use business models as tools to visualize changes, which should increase internal transparency, understanding, and awareness of service opportunities and necessary changes. Dependencies exist among elements; a change in one element likely affects the others. This study provides insights into which efforts are necessary and offers managers a guiding framework. Originality/value – By providing a multidimensional perspective on service innovation, this study merges various previous research into a synthesized discussion. Combining a resources and capabilities perspective with a business model framework also leads to new insights regarding service innovation and associated activities.


2021 ◽  
Vol 2021 ◽  
pp. 1-9
Author(s):  
Yu Su ◽  
Fei Hou ◽  
Mingde Qi ◽  
Wanxuan Li ◽  
Ying Ji

Digital technology has promoted service innovation and provided effective technical support for public service innovation in recent years. Smart healthcare, a key element of smart city development, has gradually become an important issue in government administration. Digital technology is deeply embedded in healthcare services and reshapes value creation through digital transformation. This study combines data-enabled platform business models and value cocreation and adopts a case study approach to develop a business model for a medical information service platform that allows stakeholders to cocreate value through service exchange and resource integration in smart healthcare ecosystems, promotes efficient and coordinated applications of information, and realizes innovative development in the medical industry.


Author(s):  
Christian Rathmann ◽  
Alexander Czechowicz ◽  
Horst Meier

Nowadays companies working in the field of industrial applications realize that traditional electromagnets reach their technical limits. Additionally, there is an increasing awareness for resource-efficiency and safety, due to shortages in resources and rise in legal requirements. Furthermore customers demand more and more system solution, because of increased complexity in technical applications. Service-oriented shape memory actuator systems are an innovative approach that can help companies meeting these challenges and thus not only keep but enhance their competitiveness. Therefore, this paper is focusing on the presentation of a service-oriented smart memory actuator system based on condition monitoring or reconfiguration by heat treatment. Hence an experimental actuator system is designed. This system is used to evaluate feasibility of condition monitoring to predict lifetime and the ability to reconfigure properties in use by heat treatment. Finally, an appropriate business model for service-oriented shape memory actuator systems is discussed. First results of the project are presented within the paper as well as a business model draft for a service-oriented shape memory actuator system. Further studies should be done investigating the feasibility of remote heat treatment as well as developing applicable business models for shape memory actuator systems.


2020 ◽  
Vol 12 (13) ◽  
pp. 5239 ◽  
Author(s):  
Peter M. Bican ◽  
Alexander Brem

Digitalization plays a major role in contributing towards the United Nations Sustainable Development Goals. Without transformation of existing businesses, both economic and environmental challenges of the future cannot be solved sustainably. However, there is much confusion on interrelationships and terms dealing with digitization or digitalization: Digital business model, digital transformation, digital entrepreneurship. How do these terms interrelate with and to digitalization, and how do they support firms to grow sustainably? To answer this question, we identified seven core digital-related terms based on a structured literature search within the management and economics domain, namely: Digital, Business Model, Digital Business Model, Digital Technology, Digital Innovation, Digital Transformation, and Digital Entrepreneurship. Thereafter, we analyzed prior literature for deriving a common understanding and definition as a basis for interrelations within a conceptual framework. Definitions were presented in a case study setup with twelve innovation and research and development (R&D) managers from various business units of a German high-tech company. Based on these insights, we propose a conceptual framework on how Digital Readiness, Digital Technology, and Digital Business Models might sustainably relate to Innovation, moderated by a Digital Transformation Process. With this approach, we aim to equip practitioners and researchers alike in handling and addressing change through digitalization sustainably.


2013 ◽  
Vol 17 (01) ◽  
pp. 1340003 ◽  
Author(s):  
NIZAR ABDELKAFI ◽  
SERGIY MAKHOTIN ◽  
THORSTEN POSSELT

The paper aims to generate systematically business model innovations in the field of electric mobility. It introduces a new framework, in which a business model denotes a value-focused concept with five value dimensions: value proposition, value communication, value creation, value delivery and value capture. The framework enables the classification of business model patterns, identified in the literature, according to five categories. The combination of patterns from different dimensions can lead to the systematic generation of business model innovations. But the number of business models that can result from pattern combinations can be overwhelming. Subsequently, the paper only evaluates the extent to which business model patterns that are not necessarily observed in the automotive sector can be useful for the field of electric mobility, and how they can be adapted to fit into the new context. We find that the transferability strongly depends on the actor's role in the system, if it is a manufacturer, supplier or service provider. More importantly, our analysis shows that some models such as product-to-service (e.g., car sharing service), already implemented in the automotive industry, will continue to be successful in the future because of their potential of increasing customer acceptance and technology diffusion. Many other business models — so far used in other sectors, but not in the automotive industry — may integrate the field of electric mobility. Razor and blades, own the undesirable concept, and leverage new influencers are all promising business models, if they can be fitted adequately to the new context induced by the new technology.


2019 ◽  
Vol 66 (3) ◽  
pp. 335-349
Author(s):  
Kasım Kiracı

The airline industry has entered a rapid development and transformation process, especially after the Second World War. In this process, it is seen that the market structure changed and many private airlines were established. Due to increased competition, airlines have begun to follow various strategies and business models in order to gain a competitive advantage over each other. One of the business models successfully applied recently is the low-cost business model. Therefore, this study focuses on airline companies that applied the low-cost business model. The study aims to reveal the factors that determine the financial risk in airlines, which implements the low-cost business model. For this purpose, firstly, airline companies that implement the low-cost business model have been identified according to the classification in the literature. The study included an analysis of 13 airlines with the low-cost business model that was fully accessible to financial data for the 2004-2017 period. Panel data analysis was used in the study and Altman (1968) Z-Score and Springate (1978) S-Score were used in measuring financial risk. Empirical findings of the study reveal that firm leverage, asset structure, firm size, firm profitability, and liquidity ratio have an effect on financial risk.


2018 ◽  
Vol 33 (3) ◽  
pp. 365-376 ◽  
Author(s):  
Maicon Gouvêa de Oliveira ◽  
Glauco Henrique de Sousa Mendes ◽  
Andrei Aparecido de Albuquerque ◽  
Henrique Rozenfeld

Purpose The purpose of this study is to identify the elements of the product-service system (PSS) business model of a Brazilian company that has been running it for almost 50 years. It describes the PSS business model and gives special attention to the financial aspects of PSS implementation and to contingent factors of this emerging country. Design/methodology/approach The research is based on a single case study. Data have been collected through interviews and document analysis. Results and implications are obtained using Canvas framework to structure information and comparison between theory and practice. Findings Results described in this paper show that the PSS design and implementation can be strongly influenced by financial and contingent factors. This case indicates that the implementation of PSS business models can follow diverse paths and configurations to fit with companies’ organizational features, local regulations and economic factors, including mixed transactional models and less demanding financial assessments. Originality/value This paper provides a roadmap of lessons learned from a multinational manufacturer that has been following the PSS business model for almost 50 years. This paper offers key insights concerning financial aspects and contingency factors that might influence servitization adoption.


2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Linmeng Liang

With the continuous development of computers and the Internet, all industries in China have brought new opportunities for change, and pharmaceutical e-commerce has also shown great potential for development. With the call and encouragement of national policies, the “Internet + drug distribution” business model has shown great potential to replace the traditional drug distribution model in the near future due to its advantages of shortening the transaction process and reducing the cost of enterprises. This paper presents a literature review on theories related to “Internet + drug distribution,” value chain and business model at home and abroad, and focuses on how traditional drug distribution enterprises should adopt the “Internet + drug distribution” model when the country is vigorously promoting it. The study focuses on how traditional pharmaceutical distribution companies should innovate their business models from the perspective of value chain to seek better development. By comparing the business models before and after the innovation, the new business model of “Internet + drug distribution” can help enterprises establish diversified value propositions, increase revenue channels, and reduce operating costs. At the same time, it can integrate and innovate the internal and external value chains of enterprises, so that traditional pharmaceutical distribution enterprises can further enhance their competitiveness and expand their market share. This thesis can enrich the application of value chain and business model theories in the field of “Internet + drug distribution,” and it is hoped that the model experience developed in this thesis can be used as a reference for similar enterprises in their transformation process.


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