Stimulating Open Service

Innovation

Anne-Mari Järvelin

Development Director, International

Affairs, Centre of Expertise

Programme

Outline

Importance of services

Service innovation

Stimulating service innovation - national level

Stimulating service innovation in Tampere

Importance of services

Nation Labor

%

A

%

G

%

S

%

Service

Growth

China 21.0 50 15 35 191%

India 17.0 60 17 23 28%

U.S. 4.8 3 27 70 21%

Indonesia 3.9 45 16 39 35%

Brazil 3.0 23 24 53 20%

Russia 2.5 12 23 65 38%

Japan 2.4 5 25 70 40%

Nigeria 2.2 70 10 20 30%

Bangladesh 2.2 63 11 26 30%

Germany 1.4 3 33 64 44%

Ten Nations Total 50% of World Wide Labor A = Agriculture, G = Goods, S = Services 1980-2005

PC Age 2005

United States

The largest labor force migration in human

history is underway, driven by global

communications, business and technology

growth, urbanization and low cost labor

(A) Agriculture: Value from

harvesting nature

(G) Goods: Value from

making products

(S) Services: Value from enhancing the

capabilities of things (customizing,

distributing, etc.) and interactions between things

International Labor Organization

US Employment History & Trends

Service economy

Services are everewhere, not only in

service sectors

Scope of Industrial Services

Financing

Spare parts

Process

consultation

Project engineering

Installation &

Startup

Machinery options &

upgrades Removals & re-

installations

Build, Operate,

Maintain

Refurbishment &

Resale

Training

Maintenance &

Consultation

Contracts

Maintenance

& Repair

24h emergency

service

Consumables

(Tuominen 2004)

(www.kotka.fi, Sunila sellutehdas)

Up to 30-70% of turnover of industrial companies comes from services

Industrial companies are tranforming into service providers or solution providers

Service Innovation

Service Innovation?

Service products

and processes

Customer interface

solutions

Networks and

value chains

Organisational

solutions

Successful Service Concepts?

Source: Seizing the White Space: Innovative Service Concepts in the United States.

Technology Review 205/2007, Tekes.

Successful Service Conceps

Service innovation

processes

Traditional

R&D model Emergence of an idea

Develop-ment of the idea

Market applications

Model of

rapid

application

Emergence of an idea

Applying the idea on the markets

Further develop- ment

Practice

driven

model

A change in the service practise

”Finding” the idea

Further develop-ment

Successful service innovation requires…

• Innovative use of information and knowledge as

the source of service innovations

• Customer-centric thinking

• Questioning the current ways of thinking

– • Out of the box & beyond the present needs

– • Breaking the traditional industry barriers

– • Finding the white space in the non-traditional areas

• Using networks and partnerships

• Using technologies and other methods

• Willingness to grow and go global

Stimulating service innovation

- national level

Innovation Funding for Services in Finland

Tekes funding 2010

Objectives

• Customer-centric service innovations

• Internalisation and growth of companies

• New knowledge about service innovations

Focus groups

• Pioneers of Service Business based on information and knowledge

− Retail and wholesale value chains

− Industrial services

− Knowledge-intensive business services (KIBS)

− Service business and service innovation researchers

Frame

• Programme period 1.3.2006 – 31.12.2013

• Budget 224 M€

• R&D funding, programme services

Serve in a nutshell

Strategic Themes of the Programme - Serve

• Strengthening service business development which

renews

companies & clusters and enhances global competitive

advantage

• Service concepts

• Business models

• Mindset

• Promoting growth and internationalisation of service

business

• Fostering globally attractive service markets

• Supporting internationally recognized service research

and

assisting research-related networks

Serve Programme Tools

Stimulating service innovation in

Tampere

Common nominators of

Tampere based clusters

Machine building

Management, sales,

marketing

R&D&I

Production

Services

Health and social

services

Management, sales,

marketing

R&D&I

Production

Services

. . .

Energy and environment

Management, sales,

marketing

R&D&I

Production

Services

ICT

Management, sales,

marketing

R&D&I

Production

Services

Life Sciences

Management, sales,

marketing

R&D&I

Production

Services

Creative Industries

Management, sales,

marketing

R&D&I

Production

Services

Grows Stays Goes down Tuotanto

Tampere Service

Innovation Centre:

Development partner at your

service

School of Management

The Research and Education Centre Synergos

18

Challenge

19

How to speed up the regeneration of Tampere

region and develop Tampere as increasingly

competitive growth area?

Develop new ways to gather and channel wide

service innovation knowledge and know-

how of the University of Tampere experts to meet the needs of business life and public-funded actors

Our respond

20

Gathering tools and methods for

innovation and service development

Building different forms of co-operation and

service development:

workshops, networking happenings, seminars

Building development projects especially in the field of service know-how

Utilizing the potential of our students to benefit

the regional development and to network the

students with the working life: Innovation projects

Connecting experts from versatile fields with actors from versatile sectors (utilizing the interface of public and private sector)

Results so farexamples

21

• Gathered about 70 service experts’ cabacity from different fields

Service experts

• Started or speeded up more than 10

• For example with Comatec, University properties of Finland Ltd, Sastamala district, Panostaja, The city of Tampere (TampereSenior), Tekes

Company projects

•About 300 seminar participants

•Over 100 members in different networks: Networks for Service Business and Public Services Networks

•Customer-focused mindset is spread

•New service and new jobs started in the workshop companies

•New business, started for example from the Innovation project with Särkänniemi (photo on the right)

Service development

• Blog: 34 blogs, read 3517 times

• SlideShare-materials: read 5428 times Communication

Coming soon…

The Week of Wicked Problems 21.-

24.8.2012 in Tampere

Open co-creation happening for solving

wicked problems based on brave

experiments

22

Co-seminar with Tekes 12.9.2012 • ”Cross-channelling” in providing customer-

value and competitive advantage in the trade business

More about TamSI

www.uta.fi/palveluinnovaatiokeskus

23

Thank You!