1 / 19

Organisational conditions for service encounter-based innovation

Organisational conditions for service encounter-based innovation. An article review by Kalle-Heikki Koskinen Aalto University 22 Nov 2013. Organisational conditions for service encounter-based innovation. An article by Flemming Sørensen , Jon Sundbo and Jan Mattsson

sela
Download Presentation

Organisational conditions for service encounter-based innovation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Organisational conditions for service encounter-based innovation An article review by Kalle-HeikkiKoskinen Aalto University 22 Nov 2013

  2. Organisational conditions for service encounter-based innovation • An article by FlemmingSørensen, Jon Sundbo and Jan Mattsson • From Roskilde University, Department of Communication, Business and Information Technologies • Published in Research Policy, volume 42 (2013) • Pages 1446-1456

  3. The production and delivery of services are often based on service encounters between the service organisations’ employees and their users of customers • Service encounter-based innovation developsfromideas, knowledge, or practises derivedfrom frontline service employees’ meetings with users inthe service delivery process. Service encounter-based innovation??? INNO- VATION! Service encounter! FRONT DESK BACK OFFICE CUSTOMER

  4. Background and introduction • Increased emphasis on the important role of users in innovation processes • User-driven innovation • Lack of studies of how service enounters can facilitate innovation processes • Excisting literature has no mentions about how • service encounter-based innovation occurs • service encounters and front-line employees become succesfully involved in service innovation processes • Service encounters do not by themselves support user-driven innovation, but have a huge potential to do so • The authors argue that exploitation of the potential is conditioned primarily by a number of organisational conditions.

  5. Part ITheoreticalframework

  6. Service encounter-based innovation in literature • Many categorisations of service innovations have been suggested • Some have to do with innovation in relation to service encounters (for example ad hoc innovation) • A comprehensive understanding of service encounter-based innovation process types has not been established • Based on the available literature and general understanding, a simple categorisation is proposed: • Directed innovation process • Practice-based change processes

  7. Category comparison • Directed innovation process • A top-down, strategic, planned and well structured innovation process • Ideas arise from front-line employees as a consequence of service encounters, but… • …initiated and developed by the management, marketing and/or R&D departments • Results in intentional and significant changes of a service that can be repeated and have an economic impact • Practice-based change processes • Bottom-up, non-intentional, practise-based changes - seeds of small innovations • Initiated and developed by employees as a process of daily practices • Often recognised in the “back mirror”. Still a hidden potential! • Results in smaller, unintentional daily changes; small steps in an innovation process • In both cases, innovation depends on the creativity of front-line employees

  8. General elements of the two innovation process categories • In both process categories, there are similar requirements considering the environment of service encounters: • Employees’ positive attitude towards creative problem solving needs to be facilitated • New practises and changes need to be recognised and integrated into the organisation • The three general, interdependent elements of service encounter-based innovation process: • Facilitation of the innovation process by organisation • Creativity among front-line employees • Integration of the results of creative processes in the organisation

  9. Innovation process elements and the organisation structure • The two service innovation process categories lead into a dual structure in innovative organisations: • An informal social system, a front-office innovation climate that produces ideas • A management system, an organisational support system that inspires employees and selects the ideas to be developed • Both are widely found to have significant effect on innovation capabilities of an organisation

  10. The theoretical framework • The theoretical part of the article results into a model of general organisational elements conditioning service encounter-based innovation

  11. Part IICase study

  12. Why the case study • The theory suggested that the existence of service encounter-based innovation processes is determined by two organisational elements • A front-office innovation climate • An organisational support system • The case study analysis seeks to detect the relevant aspects of these organisational elements • The goal is to create a theoretical general model of organisational characteristics enabling service encounter-based innovation • Focus on common characteristics, regardless of the differences of organisations

  13. Method of the case study • Multiple comparative study of 11 Scandinavian service organisations • Diversity of case organisations was maximised • Service sector (library, engineering consultancy, café etc.) • Size (20-3000) • Professionalism • Public or private • B2C or B2B • ICT or face-to-face (from face-recognition to zoo) • Data collection mainly through semi-structured interviews • Model development based on a search of positive and negative factors

  14. Three key conditions of a front office innovation climate • Entrepreneurial working values • An expression of front-line employees’ drive to changing services • Crucial for practise-based changes process • Social intelligence • Understanding what users/customers need • Primary “marketing tool” of front-line employees • Crucial for both innovation process categories • Recognition incentives • A feeling of front-line employees that their innovations, big or small, are important, heard and utilised • Crucial for direct innovation process

  15. Three key conditions of an organisational support system • Organisational confidence in the creative potential of front-line employees • Incremental changes by front-line employee ideas often lead to important innovations • Lack of organisational confidence eliminates the potential for directed innovation, as no front-line employee ideas are heard • Correspondence capability • Structures, cultural elements, hierarchy and channels of communication and feedback between front and back offices • “The efficiency of communication between managers and front-line employees” • Decision capacity • Ability to choose among innovation ideas • Important, because ideas do not come from “innovation department” of an organisation! • Single manager, innovation department, cross-team groups or no-one?

  16. The three elements and the six conditions • Facilitation and integration elements of service encounter-based innovation processes are affected by the organisational support system: • Organisational confidence • Correspondence capability • Decision capacity • Creativity element of service encounter-based innovation processes is affected by the front office innovation climate: • Entrepreneurial working values • Social intelligence • Recognition incentives

  17. Integrative analysis and evaluation of the final model • An integrative analysis on the three elements and the six conditions was performed • Key results: • A lack of conditions leads to limited service encounter-based innovation, and vice versa • Both front and back offices must be prepared and motivated • All types of organisations can possess all the conditions and benefit from such innovation • The model meets the requirements and assumptions made in the theory • Based on the case analysis, a final model was created…

  18. Model of organisationalconditions for serviceencounter-basedinnovation

  19. That’s it. Please, donotaskanything. Thankyou!

More Related