Table of Contents

User-based Innovation in Services

User-based Innovation in Services

Edited by Jon Sundbo and Marja Toivonen

This book demonstrates pioneering work on user-based service innovation using an analytical framework. This approach involves understanding the needs of users, the service firms collaborating with them, and recognising the fact that users are innovators and, as such, services develop while in use. As well as presenting case studies, the book discusses theoretically what user-based innovation means in the context of services. Three main fields are analysed: user-based innovation in knowledge-intensive business service, user-based innovation in public services, and models and methods for structuring user-based innovation.

Chapter 8: Users as a Development Driver in Manufacturing: The Case of ‘Reverse’ Servitization

Taija Turunen

Subjects: business and management, organisational innovation, economics and finance, services, innovation and technology, organisational innovation


Taija Turunen INTRODUCTION 1 Servitization – adding services to material products – is today widely recognized as a way to create new value in the industrial context, particularly in B-to-B relationships (Vandermerwe and Rada, 1988; Neely, 2008; Sawhney et al., 2004; Baines et al., 2009a). Literature on this topic has increased our understanding of the reasons, procedures and implications of service-led competitive strategies in manufacturing. To succeed with servitization, manufacturers need new guiding principles, structures and processes for their production and support operations. These may differ quite significantly from those associated with traditional manufacturing (Baines et al., 2009a; Voss, 1992; Oliva and Kallenberg, 2003). Most of the research carried out in the area of servitization suggests that there is a unidirectional, stepwise process that starts from the addition of simple services to the total offering, which earlier had consisted of material products only. Along with the accumulation of experience in service business, the manufacturer perceives the potential included and increases the versatility as well as the number of services in the portfolio (Oliva and Kallenberg, 2003). In practice, this argument implies that servitization starts from after-sales services – repair and maintenance – linked to the products sold. These ‘installed base services’ may also include continuous supply of spare parts. When the manufacturer understands the maintenance strategies of its customers (the immediate users of the products) and of the causes of malfunction, the offering is supplemented with more advanced services, such as process optimization, preventive maintenance, training and consultancy (Kotler, 1997; Tuli et al., 2007;...

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