What Are Services?Primary Industry
(Primary = Extractive. E.g. Farming, forestry, mining, energy, etc.)
Secondary Industry(E.g. manufacturing, construction, and utilities)
Services Industry(Services = transform material, organisms or data)
Example Services• Air & space transport• Land transport• Water transport• Motor vehicle services• Ancillary transport services• Defense & security• Sewage & sanitary services• Wholesale distribution• Retail distribution• Rental services• Real estate services• Health & social work
• Hotels & restaurants• Recreational services• Education• Public administration • Membership organizations• Insurance & pension funds• Financial intermediation• Auxiliary financial services• Research & development• Business & advisory services• Post & telecommunications• Computer services
= Sydney’s leading innovation experts
• Intangible– Instead of a material product, a service involves
transformation of material, or a person or data
• Interactive / customer-intensive– Often requires presence & participation of the client
• Co-terminal– Service production, process & consumption take
place at the same time & place
• Low portability– Often difficult to store or transport a service
How Do I Spot A Service?
How Do I Spot A Service?• Information-intensive
– Often include communication flows between supplier & customer
• Knowledge-intensive– Often requires high-skilled workers
• Tailored to customer or segment– Often highly tailored to the customer or service
situation vs. being mass-produced
– Tend to focus on one of these customer types: Business, consumer or public
= Help implementing innovation programs in Sydney
Dimensions of Service Innovation
Innovate the:
• Service Concept or Value Proposition
• Client interface – E.g. co-creation, high-touch or self-service
• Service delivery system – electronic, transport, packaging, etc
• Marketing strategy
• Organizational structure
• Technology innovation
Services vs. Manufacturing
• Services business innovation teams are:– Less likely to have large budgets
– Less likely to use patents
–More likely to use trademarks
– Less likely to use suppliers or customers as sources of information for innovation
5 Service Innovation Patterns1. Internal processes without a specific project: Innovations emerge in an unintentional, unplanned and incremental way.
2. Internal innovation projects: Deliberate, project-based innovation; usually focused on improvement of the service production system.
3. Innovation projects with a pilot customer: The customer supplies resources, sponsorship, critical evaluation and information.
4. Innovation projects tailored for a customer: The client presents a specific problem and the service provider seeks a solution
5. Externally funded innovation projects: Usually formal and research-oriented; involving many collaborators; intended to generate new service concepts or platforms to benefit a whole sector.
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