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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
Service economy
Ten Nations                                                         US Employment History & Trends
Total 50% of World Wide Labor
A = Agriculture, G = Goods, S = Services               1980-2005
                                                         PC Age
                                                                                                                                 2005
                                                                           United States
 Nation           Labor     A      G    S    Service
                   %        %      %    %    Growth                    (A) Agriculture:
 China            21.0      50     15   35    191%                            Value from
                                                                         harvesting nature
 India            17.0      60     17   23     28%
 U.S.              4.8       3     27   70     21%                                                  (G) Goods:
                                                                                                      Value from
 Indonesia         3.9      45     16   39     35%                                                making products

 Brazil            3.0      23     24   53     20%                                                                             (S) Services:
                                                                                                                       Value from enhancing the
 Russia            2.5      12     23   65     38%                                                            capabilities of things (customizing,
 Japan             2.4       5     25   70     40%                                           distributing, etc.) and interactions between things

 Nigeria           2.2      70     10   20     30%
 Bangladesh        2.2      63     11   26     30%
 Germany           1.4       3     33   64     44%
                                                                   The largest labor force migration in human
International Labor Organization
                                                                   history is underway, driven by global
                                                                   communications, business and technology
                                                                   growth, urbanization and low cost labor
Services are everewhere, not only in
                                              service sectors
                         Scope of Industrial Services
                                                                                                        Up to 30-70% of
                                                                                                        turnover of
                                                         Maintenance &
                             Financing
                                                          Consultation
                                                                                                        industrial
       Build, Operate,
       Maintain
                                                           Contracts          Installation &            companies
                                                                              Startup
                                                                                                        comes from
                                                                                                        services
 Consumables                                                                    Spare parts


24h emergency
    service                                                                       Process
                                                                                  consultation
                                                                                                        Industrial companies
   Training                                                                     Project engineering     are tranforming into
                                   (www.kotka.fi, Sunila sellutehdas)
                                                                                                        service providers or
     Refurbishment &                                                                                    solution providers
     Resale                                                             Machinery options &
                                                                            upgrades
                         Maintenance              Removals & re-
                          & Repair                installations
                                                                                      (Tuominen 2004)
Service Innovation
Service Innovation?



Customer interface       Networks and
solutions                value chains




Organisational           Service products
solutions                and processes
Successful Service Conceps

Successful Service Concepts?




                           Source: Seizing the White Space: Innovative Service Concepts in the United States.
                           Technology Review 205/2007, Tekes.
Service innovation
                                processes
Traditional   Emergence         Develop-       Market
R&D model     of an idea        ment of the    applications
                                idea



Model of      Emergence         Applying       Further
rapid         of an idea        the idea on    develop-
application                     the markets    ment


Practice      A change in          ”Finding”   Further
driven        the service        the idea      develop-
model         practise                         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
Tekes funding 2010

Innovation Funding for Services in Finland
Serve in a nutshell
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
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
               Health and
                 social
                             ..       Energy and
                                     environment
                                                              ICT       Life Sciences
                                                                                         Creative
                                                                                        Industries

                              .
                services



Management,    Management,            Management,      Management,       Management,    Management,
   sales,         sales,                 sales,           sales,            sales,         sales,
 marketing      marketing              marketing        marketing         marketing      marketing




  R&D&I          R&D&I                  R&D&I                R&D&I         R&D&I
                                                                                          R&D&I




 Production     Production             Production        Production       Production     Production




  Services       Services               Services             Services      Services       Services




       Grows                 Stays                  Tuotan
                                                      to
                                                             Goes down
Tampere Service
             Innovation Centre:
Development partner at your
         service
            School of Management
    The Research and Education Centre Synergos




                                             18
Challenge


                                Develop new ways to
  How to speed up the         gather and channel wide
regeneration of Tampere           service innovation
   region and develop           knowledge and know-
 Tampere as increasingly       how of the University of
   competitive growth         Tampere experts to meet
          area?               the needs of business life
                              and public-funded actors




                                       19
Our respond
Connecting experts from versatile fields
with actors from versatile sectors
(utilizing the interface of public and
private sector)




                       Building different forms                                       Utilizing the potential of
 Gathering tools and     of co-operation and                                           our students to benefit
                                                    Building development
     methods for        service development:       projects especially in the        the regional development
   innovation and                                 field of service know-how              and to network the
                       workshops, networking                                         students with the working
service development    happenings, seminars                                           life: Innovation projects




                                                                                20
Results so farexamples

  Service experts     • Gathered about 70 service experts’ cabacity from
                        different fields


                      • Started or speeded up more than 10
 Company projects     • For example with Comatec, University properties of
                        Finland Ltd, Sastamala district, Panostaja, The city
                        of Tampere (TampereSenior), Tekes

                      •About 300 seminar participants
                      •Over 100 members in different networks: Networks for
     Networks          Service Business and Public Services



                      •Customer-focused mindset is spread
Service development   •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)



  Communication       • Blog: 34 blogs, read 3517 times
                      • SlideShare-materials: read 5428 times

                                                                               21
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



                           Co-seminar with Tekes 12.9.2012
                           • ”Cross-channelling” in providing customer-
                             value and competitive advantage in the trade
                             business

                                                     22
More about TamSI

      www.uta.fi/palveluinnovaatiokeskus




                                           23
Thank You!

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Anne mari jarvelin stimulating open innovation in services 2

  • 1. Stimulating Open Service Innovation Anne-Mari Järvelin Development Director, International Affairs, Centre of Expertise Programme
  • 2. Outline Importance of services Service innovation Stimulating service innovation - national level Stimulating service innovation in Tampere
  • 4. Service economy Ten Nations US Employment History & Trends Total 50% of World Wide Labor A = Agriculture, G = Goods, S = Services 1980-2005 PC Age 2005 United States Nation Labor A G S Service % % % % Growth (A) Agriculture: China 21.0 50 15 35 191% Value from harvesting nature India 17.0 60 17 23 28% U.S. 4.8 3 27 70 21% (G) Goods: Value from Indonesia 3.9 45 16 39 35% making products Brazil 3.0 23 24 53 20% (S) Services: Value from enhancing the Russia 2.5 12 23 65 38% capabilities of things (customizing, Japan 2.4 5 25 70 40% distributing, etc.) and interactions between things Nigeria 2.2 70 10 20 30% Bangladesh 2.2 63 11 26 30% Germany 1.4 3 33 64 44% The largest labor force migration in human International Labor Organization history is underway, driven by global communications, business and technology growth, urbanization and low cost labor
  • 5. Services are everewhere, not only in service sectors Scope of Industrial Services Up to 30-70% of turnover of Maintenance & Financing Consultation industrial Build, Operate, Maintain Contracts Installation & companies Startup comes from services Consumables Spare parts 24h emergency service Process consultation Industrial companies Training Project engineering are tranforming into (www.kotka.fi, Sunila sellutehdas) service providers or Refurbishment & solution providers Resale Machinery options & upgrades Maintenance Removals & re- & Repair installations (Tuominen 2004)
  • 7. Service Innovation? Customer interface Networks and solutions value chains Organisational Service products solutions and processes
  • 8. Successful Service Conceps Successful Service Concepts? Source: Seizing the White Space: Innovative Service Concepts in the United States. Technology Review 205/2007, Tekes.
  • 9. Service innovation processes Traditional Emergence Develop- Market R&D model of an idea ment of the applications idea Model of Emergence Applying Further rapid of an idea the idea on develop- application the markets ment Practice A change in ”Finding” Further driven the service the idea develop- model practise ment
  • 10. 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
  • 11. Stimulating service innovation - national level
  • 12. Tekes funding 2010 Innovation Funding for Services in Finland
  • 13. Serve in a nutshell 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
  • 14. 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
  • 17. Common nominators of Tampere based clusters Machine building Health and social .. Energy and environment ICT Life Sciences Creative Industries . services Management, Management, Management, Management, Management, Management, sales, sales, sales, sales, sales, sales, marketing marketing marketing marketing marketing marketing R&D&I R&D&I R&D&I R&D&I R&D&I R&D&I Production Production Production Production Production Production Services Services Services Services Services Services Grows Stays Tuotan to Goes down
  • 18. Tampere Service Innovation Centre: Development partner at your service School of Management The Research and Education Centre Synergos 18
  • 19. Challenge Develop new ways to How to speed up the gather and channel wide regeneration of Tampere service innovation region and develop knowledge and know- Tampere as increasingly how of the University of competitive growth Tampere experts to meet area? the needs of business life and public-funded actors 19
  • 20. Our respond Connecting experts from versatile fields with actors from versatile sectors (utilizing the interface of public and private sector) Building different forms Utilizing the potential of Gathering tools and of co-operation and our students to benefit Building development methods for service development: projects especially in the the regional development innovation and field of service know-how and to network the workshops, networking students with the working service development happenings, seminars life: Innovation projects 20
  • 21. Results so farexamples Service experts • Gathered about 70 service experts’ cabacity from different fields • Started or speeded up more than 10 Company projects • For example with Comatec, University properties of Finland Ltd, Sastamala district, Panostaja, The city of Tampere (TampereSenior), Tekes •About 300 seminar participants •Over 100 members in different networks: Networks for Networks Service Business and Public Services •Customer-focused mindset is spread Service development •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) Communication • Blog: 34 blogs, read 3517 times • SlideShare-materials: read 5428 times 21
  • 22. 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 Co-seminar with Tekes 12.9.2012 • ”Cross-channelling” in providing customer- value and competitive advantage in the trade business 22
  • 23. More about TamSI www.uta.fi/palveluinnovaatiokeskus 23