Article: ”Towards a theory of innovation in services” -

BarrasService Innovation and New Service Development

Olavi Kujanen

content

Goal of the article Introduction of the articles main

themes and argumentsConclusion of the articleOpinion of the articleTopics for discussion

Goal of the article

Set a foundation for theory of innovation in service

Introduce the reverse product cycle process for services innovations

Combine the theory with economic cycles

Stantard product cycle theory

1.Introductio

n

2.Growth

3.Maturity

Introduction phase

-Major product innovation

-rapid technical advance

-new industries and products

-high cost, but edge in performance

Growth

-focus on quality of the product

-bigger volumes but fewer products

-new markets

Maturity

-automation and large manufacturing units

-incremental improvements on unit costs

Transmission of technology

Transmission of a major new technology

From capital goods to user sectors

Occurs slowly

Two types of delays

-price versus performance

-risk and uncertainty

-technical feasibility

reverse product cycle process for service innovations

Applications of new

technology

QualityNew services

Applications of new technology

-Effiency of delivery

-incremental

-cost effient services

Quality

-better services

-radical

New Service

-new service products to the industry

-opening of new markets

Innovations and economical growth cycle

Economical growth and product cycle:

Prosperity – transition - emergent

Recession – introduction - new

Depression – growth - improved

Recovery – maturity - cheaper

Economical growth and reverse product cycle:

Prosperity – growth – improved Recession – maturity - cheaper

Depression – transition - emergent

Recovery – introduction - new

Conclusion of the article

Theory based on product innovation model justification from case studies of IT sector only Intertwined with technological innovations Combined with economical cycles Cycles last decades not years

Opinions about the article

Product vs service process

Problem of non-technology driven service innovations

valid at technology driven service field

Discussion

Do you think reverse product cycle could be used in other fields of service other than IT?

Which is the models biggest weakness?

Please be free to ask anything