Drucker, P. F. (1954)
"the purpose of a business is to create a customer – as such it has only two functions: innovation and marketing."
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<1 min
Archives: Literature
Ram, S., Sheth, J. (1989)
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Research Paper
Abstract: The article explains why customers resist innovations even though they are considered necessary and desirable. The major barriers which create customer resistance to innovations have been identified and marketing strategies to overcome these barriers have been suggested. Primarily because most business corporations are faced with a very high rate of new product failure, only a small fraction of the new product Ideas chosen for market development are commercially successful. One of the major causes for market failure of innovations is the resistance they encounter from consumers. Yet, little research has been done on this subject. Most studies have focused on successful innovations and their rate of diffusion through the market. Some marketing scholars have emphasized the value of studying innovation resistance. However, except for a few studies, the concept remains neglected. First, an innovation may create a high degree of change in the consumers' day-to-day existence and disrupt their established routines. For example, the videotex, which offers in-home shopping services, when initially in France, met with high consumer resistance because of the changes it created in shopping behavior.
Gives the main barriers that cause resistance.
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<1 min
Smith, A. (1776)
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Research Paper
Lots of interesting stuff, but in particular the first definitions of productive labour (producing products) and unproductive labour (essentially services)
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Ojasalo, J., Ojasalo, K.
Abstract: Purpose. The purpose of this paper is to propose an approach for using Service Logic Business Model Canvas in the lean service development, and visa versa. So far, the literature on business logics for service or business models does not utilize the ideas of lean development. There is a clear knowledge gap in the intersections of the three research areas: business logics for service, business models, and lean development. The present article addresses this knowledge gap.
Design/methodology/approach. The present conceptual paper is based on an extensive literature analysis on business logics for service, as well as business models, and lean development.
Findings. The paper proposes a model of lean service development. It integrates the model in the process of using the Service Logic Business Model Canvas.
Research limitations/implications. The paper shows how a new service is iteratively developed through several improvement rounds into a final business model, it shows the important role of rapid testing and learning in the iterative service development process, it supports the implementation of the fundamental philosophy of business logics for service in business development, and encourages using multiple service design methods in the service development, if needed.
Practical implications. The ideas of lean or agile development have been used for a long time in software development. In addition, the ideas were later adopted in the business development of startups. Agile and lean development principles have dramatically changed the managerial thinking and practice in these areas. The present paper develops an application of these approaches to be used in service development, business model development, and implementation of business logics for service in practice.
Originality/value. This paper contributes by (1) developing and introducing the lean service development model, and by (2) integrating it to the process model of using Service Logic Business Model Canvas
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<1 min
Abstract: The objective of this thesis was to assist the case company to identify value propositions and co-creation possibilities in the context of the digital environment. Marketing research in value creation has traditionally focused on the goods perspective where the organization is seen as the value creator. Shift in marketing thinking has moved the focus to service logic which sees the customer as a value creator. Therefore, an organization can offer value propositions which the customer can later turn into value. Despite the interest in value creation, there are only a few studies on how value creation emerges and how it can be managed.
The approach in the present study was qualitative. The primary data was collected by conducting two in-depth interviews. The interviewees were in an operational role in the case company and they had academic and practical experience in online service development so that they could provide insight into the company’s value creation processes.
The results showed that the case company relied on financial, strategic and functional value propositions. The co-creation process rose from the organization, which indicated that even though the customers were part of the co-creation processes, the main ideas for innovation emerged from inside of the case company. This suggests that the case company puts significance on resource-based innovation and less weight on co-creation and development of the service. Recommendations were given to the case company based on the conclusion on the co-creation and value proposition possibilities. Although the results were limited to the case company, the theoretical framework could be used in other settings.
Useful summary of creation and co creation in services innovation
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<1 min
Schumpeter, J.A. (1934)
Gave an original definition of drivers of economic development, including innovation. Also gave an original definition of “new” when relating to innovation, which differs from that we use in service innovation. Defines innovation as 1. launch of a new product or a new species of already known product; 2. application of new methods of production […]
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Djellal, F., Gallouj F., Miles, I. (2013)
Abstract: Service innovation was neglected for a long time, but by the first years of this century it was clear that some maturity had been reached. Innovation in the public sector has been even more neglected in the mainstream of innovation studies. This paper explores the scope for fruitful integration of work on this topic into innovation studies more generally. It examines four different theoretical perspectives used in studies of service innovation: assimilation, demarcation, inversion and integration/synthesis. Each of these throws light on particular issues confronting public services innovation, and we see that innovation in this sphere is highly diverse and that it does often display special features. But we conclude that these features do not constitute a strong case for studying public service innovation as if it were something sui generis, let alone continuing to neglect it. Instead, the case is made for developing more integrative views of innovation.
An interesting walk through of innovation in public services through the three lenses of service innovation: assimilation, demarcation and synthesis
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<1 min
Witell, L., Snyder, H., Gustafsson, A., Fombelle P. W. (2016)
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Research Paper
Abstract: Research on service innovation appears in several research disciplines, with important contributions in marketing, management, and operations research. Although the concept is widely used, few research papers have explicitly defined service innovation. This dearth of research is the motivation for the present study. Through a systematic review of 1301 articles on service innovation appearing in academic journals between 1979 and 2014, this article examines research defining service innovation. The study identifies the key characteristics within 84 definitions of service innovation in different perspectives (assimilation, demarcation and synthesis) and shows how the meaning of the concept is changing. The review suggests that the large variety in definitions limits and hinders knowledge development of service innovation.
This paper reviews service innovation from 1301 papers spanning 1979-2014. It points out the limited amount of research that has been conducted; is helpful in giving the context and definitions from the three perspectives of assimilation, demarcation and synthesis; and identifies that such a wide range of definitions hinders knowledge development.
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<1 min
Phillip T. Kotler, P.T. (2014)
expanding the marketing mix 4 P’s to address services.
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<1 min
Coley, S., Baghai, M., White, D. (1999)
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Book
The work from McKinsey that bought us the three horizons model.
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