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© 2014 IBM Corporation
European Service Innovation Centre Conference9-10 September, 2014 in Helsinki, Finland
Observations
in contrast with Slush 2014!
Juha Hulkkonen – [email protected], twitter: @jhulkkonen
11 February 2015
© 2014 IBM Corporation2
European Service Innovation Centre Conference 2014
Five sessions:
Why Service Innovation matters to the Renewal of European Industries and to the
Competitiveness of European Regions?
Where do European Regions stand in Service Innovation Performance?
Regional Efforts to address Challenges in Service Innovation Policies
How to follow a Large-Scale Demonstrator and Cluster Approach towards an effective
Service Innovation Ecosystem?
The Way forward -Implications for European Service Innovation Policies
© 2014 IBM Corporation3
Background to ESIC
Final report of the Expert Panel on Service Innovation in the EU in February 2011
Recommendations on “the need to capitalize on the ‘transformative power of service innovation’ and to applying a ‘demonstrator approach’ through which service innovation can be capitalized upon in a more systemic and holistic manner.”
Six model demonstrator regions
Workshops
European Service Innovation Scoreboard
http://ec.europa.eu/enterprise/initiatives/esic
© 2014 IBM Corporation4
First Session: Why Service Innovation matters to the Renewal of European Industries and to the Competitiveness of European Regions?
From technology programmes to broad-based innovation system approach –Policy experiences from Finland
Petri Lehto, Head of Division at the Enterprise and Innovation Department, Ministry of Employment and the Economy
Next:
Feelings – intangible
value creation based
on experiences and
meanings that
customers add on
different products and
services.
© 2014 IBM Corporation5
First Session: Why Service Innovation matters to the Renewal of European Industries and to the Competitiveness of European Regions?
How does a region shift from a path of disadvantage or limited growth to another path based on growth and innovation?
Systemic innovations and systemic policies as a different approach to regional policy (vs Project Teams/Policy Projects/Policy Silos)
Systemic approach for service innovation: focus on cross-sectoral linkages, relationships between services providers and clients
Services duality and innovations: producer services, production-related and product-related services, hybrid products and hybrid production systems embedding services with products
Producer services and urban transformation: Employment dominated by business and professional services in nearly all cities. Locations for major concentrations of producer services engaged in exports.
Example: UK Space Industry – UK does not neet astronauts to be big in the space industry
Keynote address: The regional dimension of service innovation and the need for
a systemic approach John R Bryson, Professor, University of Birmingham
Continual increase in knowledge, service and experience content of goods and servicesAll production systems have become hybrid systems.Emergence of hybrid products.
© 2014 IBM Corporation6
First Session: Why Service Innovation matters to the Renewal of European Industries and to the Competitiveness of European Regions?
Customer demands expand rapidly
Quality of life depends on service systems
Organizations should (and can) act now
We are embedded in nested service systems
The service systems framework enables organizations to identify their service ecosystems
Forces
Connected & Open
Simple & Intelligent
Fast & Scalable
Consumers are demanding greater sophistication
Organizations are increasingly pressured to catch-up
Organizations must rethink services based on to which ecosystems they belong
Changes are necessitating smarter service systems
Technology expands what is possible
Reduce implementation time from months to days and hours
CloudAnalytics
Social Mobile
“…for the first
time, we now
have technology
affecting every
single sector of
the economy.”
James Manyika
IBM's approach in the global service market Juha Hulkkonen, Business Development Executive, IBM Finland
© 2014 IBM Corporation7
First Session: Why Service Innovation matters to the Renewal of European Industries and to the Competitiveness of European Regions?
A new approach to supporting innovation: The Demola case Petri Räsänen, Director (Innovation and Foresight), Council of Tampere Region
© 2014 IBM Corporation8
Second Session: Where do European Regions stand in Service Innovation Performance?
Introduction to the European Service Innovation Scoreboard Andrea Zenker, Fraunhofer ISI (European Service Innovation Centre), Emmanuel Muller, Strasbourg
Conseil (European Service Innovation Centre)
© 2014 IBM Corporation9
Third Session: Regional Efforts to address Challenges in Service Innovation Policies
How to combine various innovations effectively and disseminate them rapidly.
Systemic problems cannot be identified directly. They manifest themselves in various practical problems.
Need for integrators
The role of knowledge intensive business services: often nodes in the networks of clients, cooperation partners, public institutions and R&D establishments.
Keynote address: How service innovations can transform whole industries and
regional ecosystems? Marja Toivonen, Member of the High Level Group on Business Services, VTT (Technical Research Centre of
Finland)
© 2014 IBM Corporation10
Third Session: Regional Efforts to address Challenges in Service Innovation Policies
Needs
- Change policy paradigm at the local/regional level
- A much more holistic approach to business regeneration and public service transformation which can be scaled up
- Smart, sustainable, inclusive growth
Continuing shift to knowledge based sectors, particularly services
- Difficult to build clusters de novo, better to build on established strengths.
- Difficult to predict technological advances, and incumbents are the worst at predicting disruption
- Digitalization of services, further service transformation and behavioral change.
The Large-Scale Demonstrator approach – what do we mean by that? Allan Mayo, Former Chair of the Expert Panel on Service Innovation in the EU
© 2014 IBM Corporation11
Fifth Session: The Way forward -Implications for European Service Innovation Policies
Loosely coupled innovation systems in services
Manual services and social challenges
Public organizations not traditionally innovative –changing demands
Systemic service-productivity innovation:
Carried out in single service firms
Weak support system – and weak research foundation
Systemic innovations and the ecosystems approach as a means of tackling
societal challenges Jon Sundbo, Professor, Roskilde University
Productivity example: number of employees needed to create economic value of 1BDkr
© 2014 IBM Corporation12
Compare ESIC conference with Slush startup event
Entrepreneurs pitching consumer and business services to investors and partners.
Example: Inventor of a mobile connected blood glucose measurement device offers a subscription to a diabetes children’s gamified compliance enhancing service with alerts to parents (including a cool-looking and feeling device in subscription).
Approach is customer and business first:User centric design, relevant ecosystem,
partners, service business models and scalable operating models very present from the origins.
Use of enabling technologies:Built with consumable services for mobile
consumption
Role of local Agency for InnovationIn the background – event created by the
entrepreneurs themselves (framework conditions in ESIC-language?)
© 2014 IBM Corporation13
For further information:
Brown, Eric, https://www.youtube.com/watch?v=np1sJ08Q7lw, IBM
Ernst and Young, http://www.ey.com/GL/en/Issues/Business-environment/Six-global-trends-shaping-the-business-world
Forbes, http://www.forbes.com/sites/rebeccabagley/2014/07/15/how-the-cloud-and-big-data-are-changing-small-business/
Gartner, http://www.gartner.com/technology/research/top-10-technology-trends
IBM Institute for Business Value, The new age of ecosystems, http://www-935.ibm.com/services/us/gbs/thoughtleadership/ecosystempartnering/
McKinsey, http://www.mckinsey.com/insights/business_technology/why_every_leader_should_care_about_digitization_and_disruptive_innovation
McKinsey, http://www.mckinsey.com/insights/business_technology/accelerating_the_digitization_of_business_processes
Moore, Geoffrey A, Escape Velocity, HarperCollings Publishers, New York
PricewaterhouseCoopers, http://www.pwc.com/techforecast
Spohrer,Jim, http://www.slideshare.net/spohrer, IBM
Woods, Steven, Digital Body Language, New Year Publishing, Danville
