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 16: Towards User-based Productization in Services

Katriina Valminen and Marja Toivonen

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

Extract

Katriina Valminen and Marja Toivonen 1 INTRODUCTION Combining efficiency with a user-based approach is a central challenge in services. Seemingly, these standpoints are very different: efficiency is linked to the scalability of services, whereas user-orientation aims to offer a unique experience for the customer in individual encounters. Success in service business is not, however, possible if the provider only tackles one of these challenges and neglects the other. The one-sided emphasis on user-orientation may lead to totally tailor-made practices where the insights emerging at the customer interface do not accumulate into shared understanding, and where the interaction with customers is highly dependent on the skills of individual staff members. Correspondingly, the one-sided emphasis on efficiency may lead to mechanical input–output considerations which answer the needs of users poorly and consequently do not form a sustainable strategy in the longer term. In recent years, productization of services has been presented as one solution to the problem of efficiency. The concept of productization has been used more generally in managerial texts than in scholarly literature, but there are several streams in the latter literature which actually discuss the same topic. Some analyses applying the New Service Development (NSD) framework, as well as those analyses applying the method of service blueprinting, can be mentioned as examples (Edvardsson, 1997; Bitner et al., 2008). Because the core of productization is a systematic description of a service, and the dissemination of a common view based on this description among the staff members, the exercise easily...

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