In part 1 of this 2 part article we saw that goods-dominant logic is like driving a performance car but only using 1st gear
Here we look at how to access the other gears by evolving our view of the world from a goods-centric view that has total focus on exchanging value at a one-off sales point. To a service centric view
Such a service-dominant logic, as it is called, helps really explain how the world works...
...and accelerates our innovation thinking
We can understand exactly what innovation - and its different types, for example: incremental, radical, ecosystem etc - means when we use a characteristics model.
Even better, a characteristics model provides a framework on which we can more systematically hunt for innovation. Including the impact of introducing partners in an ecosystem
Can we define what a service is in a more formal way? And then use that to better understand what innovation means?
Yes we can. Service(s) can be defined as lists of:
Service innovation is then the act of adjusting these competences and characteristics to generate new/additional value
As service is the basis of exchange, then all economies are service economies. But how do we account for the classic view of their being agricultural, goods and service economies?
We look at the skills and resources that society saw as the most beneficial to apply and improve. These turn out to be the skill and resources of: cultivation, mass production, management, and resource integration.
And the "shift to the service economy", often talked about today, is society beginning to see the skills of resource integration as most beneficial.
We'll look at describing some examples of services using my update to Gallouj & Weinstein "service as characteristics" model.
And we'll take some examples from across the service-service continuum. From self-service - which includes what we would have called goods in the old days - through to full service.
In our increasingly service based economies it is important to understand what services are.
We gain this understanding by looking at services through academic definitions, marketing, and economic attributes, a continuum between gods and services and finally the logic behind services.
You may be surprised to learn that the service economy is around 80% of the economy in "developed" lands (already 79% in UK). And it is an economic segment that is increasing everywhere.
I explore why we shift towards service dominant economies and the impact of that shift.
Not least if that you need to think of innovation differently for the service world than you do at present
Back in 2000, Pim den Hertog published a service innovation model that we can use to search for and explain service innovations (den Hertog (2000)). It uses three aspects of a service innovation:
In a later 2010 update he introduced 2 more dimensions - new revenue model and new business partners. As well as renaming technology options to new delivery system (technology).
