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Innovation in service firms lags behind innovation in industrial firms, says research from the Flanders DC knowledge center at the Vlerick Management School. The research also gives strategy and policy recommendations. We think that service innovation is important: 3 out of 4 jobs in Flanders come from the service industries.
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How to Innovate !in a Service Firm!
Learnings from the study:!Ambidextrous Innovation Behaviour in Service Firms!
Services: 76%! Manufacturing: 23% remaining!
GDP Flanders: Loading…!
Type of innovation: radical vs incremental!
ikipedia
How to combine radical & incremental innovation: 1. Ambidexterity!
pat !your !
head!
and simultaneously rub your belly
How to combine radical & incremental innovation: 2. Punctuated Equilibrium!
pat your head STOP then rub your belly STOP pat your head again STOP rub your belly AND SO ON!
How do Firms Innovate?!
0!10! 20!
30!40!
50!
Ambidexterity!
Exploration!
Punctuated equilibrium!
Exploitation!
No innovation!
Ambidextrie!20%!
Exploratie!2%!
Doorbroken !Evenwicht!
24%!
Exploitatie!13%!
Geen innovatie!
41%!
Services!
Ambidexterity!
Exploration!
Punctuated equilibrium!
Exploitation!
No innovation!
0 10
20 30
40 50
Ambidextrie!30%!
Exploratie!5%!
Doorbroken!evenwicht!
24%!
Exploitatie!14%!
Geen innovatie!
27%!
Manufacturing !
Service Innovation:Proof of the pudding!
3 important ques4ons
#serviceinnovation!
Q1 How do we manage incremental innovation? Enough incentives?!
#serviceinnovation!
Q2 How do we organise radical innovation when needed?!
#serviceinnovation!
Q3 How do we involve suppliers and customers in the innovation process? !
How to handle innovation in services (the management school slide)!
Strategies!
Send explorers!
Dive Deep!
Experiment and learn!
Strategies!
Illustrator Fred McNabb's vision of the future in 1956!
Explore multiple futures!
Work with active users!
Mobilise! the mainstream!
Use networks!
Strategies!
Stimulate diversity!
Generate ideas!
Strategies!
Corporate!venturing!
Corporate entre-!& intrapreneurship!
Strategies!
BELEID • INTERNATIONAAL
• Verschillende beleidsinitiatieven binnen (Finland, Duitsland) en buiten (Japan) EU
• B.v. Duitsland
• “Innovation with services”
• Doel: zelfde excellentie in dienstensector als in productie
• Beleid, onderzoek, handel, industrie, inetrmedairen, sociale partners
• Nieuwe tools en methodologieen
• Voorrang:
• methoden voor engineering van processen in dienstensector
• technologie engineering voor nieuwe diensten
Foreign example:!€70 million programme in Germany !
Conclusions!• Service industry very important for jobs!• 4 out of 10 service companies doesnʼt innovate!• Companies should combine radical and incremental
innovation!– How they do this is less important (ambidexterity or
punctuated equilibrium)!– 44% combines the two already (54% in industrial sector)!
• Heterogenity is very important!• Important role for suppliers and customers!• We need a more focused and explicit service innovation
policy!• Awareness gap with regard to government support
programmes !
More info:!www.flandersdc.be!
Learnings from the study:!Ambidextrous Innovation Behaviour in Service Firms!
