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A Proposal for a Standard With Innovation Management System

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Service Design <strong>System</strong>s Driven <strong>Innovation</strong> Approach <strong>for</strong><br />

Total <strong>Innovation</strong> <strong>Management</strong><br />

Mohammed AlSudairi and TGK Vasista<br />

King Saud University, Riyadh, Saudi Arabia<br />

mas@ksu.edu.sa<br />

tgkvasista@gmail.com/gtatapudi@ksu.edu.sa<br />

Abstract: The increasing innovation potential of integrating distinct disciplines has a considerable impact on the<br />

innovation process. This development affects the way in which technology management and technology<br />

intelligence should be carried out. As a consequence, the integration of external in<strong>for</strong>mation sources becomes<br />

important. This raises a question of how technology intelligence network comprising external in<strong>for</strong>mation sources<br />

should be designed. One of the solutions propounded by economists is the capability of producing a standard<br />

equilibrium model. Our ef<strong>for</strong>t will be to address this unique challenge of achieving equilibrium through proposed<br />

total service innovation model. The New Growth theory asserts that the power of ideas is an unlimited resource in<br />

economic activity. The Architectural <strong>Innovation</strong> is broad enough to include service innovation. Thus it is a <strong>for</strong>m of<br />

Total <strong>Innovation</strong> <strong>Management</strong> Methodology to introduce the workings of the best practitioners. The ef<strong>for</strong>t of this<br />

paper presents a methodological approach to achieve Total Service <strong>Innovation</strong> <strong>Management</strong>.<br />

Keywords: service blueprint, service design systems management methodology, service innovation, service<br />

innovation integration, total service innovation management<br />

1. Introduction<br />

The contribution of market orientation to new product/service per<strong>for</strong>mance has been examined by a<br />

number of academics under Open <strong>Innovation</strong> (Schuh et al. 2008), which include direct and indirect<br />

contribution. It means market oriented firms are inclined to produce service innovation first, which in<br />

turn leads to new service per<strong>for</strong>mance (Cheng and Krumwiede 2012).<br />

Though regulatory and market barriers exist, General Agreement on Trade in Services (GATS)<br />

highlights that service activities will soon become the most interesting part of the world trade. Service<br />

Providers there<strong>for</strong>e can start benefiting from economy of scale opening up toward international trade,<br />

thus leading to the emergence of first examples of global-scale service companies (Maffei, Mager and<br />

Sangiorgi 2005). Thus service can become the major driving <strong>for</strong>ce within the contemporary economy.<br />

The four key areas of practice contributing to service innovation are: (1) Technology (2) Customers (3)<br />

Organisations and (4) Networks (Furseth, Cuthbertson and Reynolds 2010).<br />

The idea to develop Total Service <strong>Innovation</strong> <strong>Management</strong> was inspired by the thoughts of systems,<br />

economic theories, web services environment and observations from some leading companies such<br />

as Microsoft, IBM, Oracle and HP etc. The Total <strong>Innovation</strong> <strong>Management</strong> (Xu et. al. 2007) paradigm<br />

was developed and popularized by Institute of <strong>Management</strong> Science & Strategy of Zhejiang University<br />

and a group of scholars in American advisory company of Stan<strong>for</strong>d University (Zaipul).<br />

Despite the dominance of services in modern economies, and their rapid growth worldwide, little<br />

attention is being paid to produce the unique challenge of management of obtaining the integrated<br />

view on the service chain with total service innovation management capability of handling idea to<br />

service intelligence. So our ef<strong>for</strong>t is to keep the customer as the centre of innovation, an indicator <strong>for</strong><br />

service improvement and an ideal litmus test <strong>for</strong> the suitability of a new design.<br />

2. Research questions<br />

Our research is targeted at two basic questions:<br />

� How trans<strong>for</strong>mation of traditional economies can be facilitated into the knowledge-based service<br />

economies, and<br />

� How a blue-print of theoretical model and underlying theories that supports the theoretical<br />

framework <strong>for</strong> service innovation can be designed.<br />

3. Purpose<br />

Globalisation and new business models are required to be designed to breakdown traditional<br />

enterprise boundaries. It is required to close the gap between public and private service standards<br />

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