Innovation in service companies - how is value created for both the customer and the service company?

Purpose and goal

The key question addressed within this pilot project was identified working with the VINNOVA project Micro-dynamics, innovation and management when services are produced in customer interplay. The aim of this pilot project was to identify barriers and opportunities for the development of prevailing business models, in relation to the innovation strategy of the company.

Results and expected effects

The point of departure was that the business models of the service companies are limiting potential successes based on new innovations. The study shows how prevailing business models counteract the implementation of innovation strategies. The individual contexts show the managers´ cognitive deficiencies regarding how closely intertwined innovation and development of business models are. The study raises new questions regarding the ability of the leadership to handle conflicts between the logic of the innovation process and the structure of the business model.

Approach and implementation

Case studies in three companies were conducted. A management team of 9 individuals, one consultant, and one CEO and the Chairman of the Board was interview in the respective companies. About 60 pages of interview transcriptions were produced. As setting up interviews took longer than expected, due to personnel changes, the study was first completed by the end of 2013. Further analysis of the results is ongoing in co-operation with Prof. Per Andersson, SSE. The outcome will be published in the form of a case as well as an academic paper.