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The Innovation Process of Knowledge Intensive Business Service. Yan Tao National Institute for Innovation Management, School of Management, Zhejiang University, Email: Northlandtao@163.com. 1. Problems to be solved. Background. 2. The components of FTC. 2. Innovation process. 3. 4.
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The Innovation Process of Knowledge Intensive Business Service Yan Tao National Institute for Innovation Management, School of Management, Zhejiang University, Email: Northlandtao@163.com
1 Problems to be solved Background 2 The components of FTC 2 Innovation process 3 4 Methodology 5 Primary results & discussion Contents
1. Problems to be solved • What is service innovation? • How KIBS firm innovate? • Characteristics of KIBS’ innovation process?
1 Problems to be solved Background 2 The components of FTC 2 Innovation process 3 4 Methodology 5 Primary results & discussion Contents
Coming Age of Service Here are the facts… • All national economies are shifting to services • major industrialized nations are >70% services, developing nations are close behind • To better study, manage, and engineer service systems, new skills are needed • combination of business, organization, technology skills • Educational system is slowly shifting toward services • service management, operations, marketing, and engineering courses and programs exist • At national level, governments can draw investment toward service innovation.
What are Knowledge Intensive Business Service (KIBS)? • Concepts: • Miles(1995) • Hipp(1999) • Muller and Zenker(2001) • OECD(2001) • ……
What are Knowledge Intensive Business Service (KIBS)? Knowledge intensive Innovative Consultant Intermediaries ……. ICT service Business service Financial service KIBS Engineering & technical service
1 Problems to be solved Background 2 The components of FTC 2 Innovation process 3 4 Methodology 5 Primary results & discussion Contents
Let’s from technological innovation process • The Technology Push Theory • The Market Pull Theory • The Coupling Innovation Process Theory • The Functional Integration Innovation Process Theory • The Systems Integration and Networking Innovation Process Theory
On service innovation process • Bckground of the following three trends: • Increasing specialization in knowledge production; • Increasing complexity in physical artifacts, and in the knowledge bases underpinning them; • The difficulties of matching technological opportunities with market needs and organizational practices (Pavitt, 2003)
Service innovation • Barras(1980,1984):RPC Theory • Miles(1993;1995):Theory Development • Gallouj ( 1991;1994;1998 ): Theory Development • Sundbo ( 1994;1997;1998 ): Theory Development • Builderbeek(1998):4-dimension model • Hauknes(1996) • And Finland, Singapore,Korea
Service innovation process • Sundbo(1998) • Conception stage • Development stage • Protection stage • Sundbo’s service innovation process model is particularly applicable to those enterprises that provide "modular" and "customer oriented" services.
The model of new service development (NSD) • Scheuing and Johnson(1989) • Bowers(1989) • Martin and Horne(1995) • Lee and Xon(1996) • Edvardsson(1996) • Zeithaml and Bitner(2000)
1 Problems to be solved Background 2 The components of FTC 2 Innovation process 3 4 Methodology 5 Primary results & discussion Contents
Methodology 1.Multi-case study (Yin, 2003) • Select typical cases from the each sub-sector of KIBS: • finance service, • ICT service, • Business service • Engineering and technical service. • Data collection was based on interviews with executive managers from the firms.
Methodology 2. Service Innovation investigation Wong(2002)—Singapore Tether(2002)—OECD Hipp(2005)—German Drejer Using questionnaire • The survey was performed in 2006-2007, Mainly covering the KIBS firms in districts of Beijing, Shanghai, Guangzhou • Distribute More than 2000 • Now we have received about 700 questionnaires, of which 453 are valid.
1 Problems to be solved Background 2 The components of FTC 2 Innovation process 3 4 Methodology 5 Primary results & discussion Contents
The characteristics of KIBS’ innovation process • Highly Customer-oriented (Bilderbeek, Hertog, Marklund, Miles, 1998) • Interaction • Networking • Cooperation in innovation • …….