Advertisement

Service Innovation Capabilities for Idea Assessment: An Appraisal of Established and Novel Approaches

  • Niels FeldmannEmail author
  • Marc Kohler
Chapter

Abstract

The importance of innovation for companies to gain competitive advantage is widely acknowledged. While earlier studies have emphasised the critical importance of idea assessment as part of the new product and new services development process, the topic has been under-represented in academic research recently. In this paper, we aim to provide an overview on the depiction of idea assessment in services research. For this, we start by exploring the representation of the topic in question in recent service innovation capability frameworks. On a more operational level we reflect service-related publications on criteria, information sources, group compositions and approaches for idea assessment. Finally, by reporting on a case study with a German financial services provider, we introduce serious games and enterprise crowdfunding as two novel approaches for assessing service ideas. Overall, we find that internal, service providing staff should play a major role in the assessment of service ideas. Surprisingly, classical portfolio management approaches making use of deliberation in small management boards seem to be the predominant method discussed in the literature and applied in practice. Mechanisms which are designed to involve larger crowds into idea assessment exist, however, are not yet widespread. The two novel approaches show promising avenues for involving service providing staff into idea assessment in a motivating way.

Keywords

Service innovation capabilities Idea assessment Idea evaluation Serious games Enterprise crowdfunding 

References

  1. Aas TH (2009) Service innovation management: designing an ex-ante value assessment tool. In Proceedings of the 2nd ISPIM Innovation SymposiumGoogle Scholar
  2. Aas TH (2010) Implementing a value assessment tool for service innovation ideas. Int J Innov Manage 14(06):1149CrossRefGoogle Scholar
  3. Aas TH (2011) Management control of service innovation activities: an exploratory investigation of best practice. Int J Serv Technol Manage 16(3/4):318CrossRefGoogle Scholar
  4. Aas TH, Pedersen PE (2010) The firm-level effects of service innovation: a literature review. Int J Innov Manage 14(5):759–794CrossRefGoogle Scholar
  5. Agarwal R, Selen W (2009) Dynamic capability building in service value networks for achieving service innovation. Decis Sci 40(3):431–475CrossRefGoogle Scholar
  6. Arrow K, Forsythe R, Gorham M (2008) The promise of prediction markets. Science 320(5878):877–878CrossRefGoogle Scholar
  7. Barczak G, Griffin A, Kahn KB (2009) PERSPECTIVE: Trends and drivers of success in NPD practices: results of the 2003 PDMA best practices study. J Prod Innov Manage 26(1):3–23CrossRefGoogle Scholar
  8. Belleflamme P, Lambert T, Schwienbacher A (2014) Crowdfunding: tapping the right crowd. J Bus Ventur 29(5):585–609Google Scholar
  9. Blazevic V, Lievens A (2004) Learning during the new financial service innovation process: antecedents and performance effects. J Bus Res 57(4):374–391CrossRefGoogle Scholar
  10. Brentani U (2001) Innovative versus incremental new business services: different keys for achieving success. J Prod Innov Manage 18(3):169–187CrossRefGoogle Scholar
  11. Bullinger H-J, Fähnrich K-P, Meiren T (2003) Service engineering—methodical development of new service products. Int J Prod Econ 85(3):275–287CrossRefGoogle Scholar
  12. Chesbrough H (2010) Open services innovation: rethinking your business to grow and compete in a new era. Wiley, San FranciscoGoogle Scholar
  13. Chesbrough H (2011) Open service innovation. MIT Sloan Manage Rev 52(2):85–90Google Scholar
  14. Christensen CM, Kaufman SP, Shih WC (2008) Innovation killers: how financial tools destroy your capacity to do new things. Harvard Bus Rev 86(1):98–105Google Scholar
  15. CMMI Product Team (2010) CMMI for services, version 1.3. Technical report, CarnegieMellon University, Software Engineering Institute, Pittsburgh, PAGoogle Scholar
  16. Cooper RG (1999) New product portfolio management: practices and performance. J Prod Innov Manage 16(4):333–351CrossRefGoogle Scholar
  17. Cooper RG (2009) How companies are reinventing their idea–to–launch methodologies. Res Technol Manage 52(2):47–57Google Scholar
  18. Cooper RG, Edgett SJ, Kleinschmidt EJ (2001a) Portfolio management for new products. Working paper, no. 11. http://materias.fi.uba.ar/7558/Lecturas/Portfolio%20Management%20for%20New%20Products-Picking%20the%20Winners.pdf. Accessed 13 March 2014
  19. Cooper RG, Edgett SJ, Kleinschmidt EJ (2001b) Portfolio management for new product development: results of an industry practices study. R&D Manage 31(4):361–380CrossRefGoogle Scholar
  20. Dalkey N, Helmer O (1963) An experimental application of the delphi method to the use of experts. Manage Sci 9(3):458–467CrossRefGoogle Scholar
  21. Dean DL, Hender JM, Rodgers TL (2006) Identifying quality, novel, and creative ideas: Constructs and scales for idea evaluation. J Assoc Inf Syst 7(10):646–699Google Scholar
  22. den Hertog P, van der Aa W, de Jong MW (2010) Capabilities for managing service innovation: towards a conceptual framework. J Serv Manage 21(4):490–514CrossRefGoogle Scholar
  23. Essmann HE (2009) Toward innovation capability maturity. Doctoral dissertation, University of StellenboschGoogle Scholar
  24. Essmann HE, du Preez N (2009) An innovation capability maturity model—development and initial application. Eng Technol 53:435–446Google Scholar
  25. Feldmann N, Gimpel H, Kohler M, Weinhardt C (2013) Using crowd funding for idea assessment inside organizations lessons learned from a market engineering perspective. In Proceedings of the third international conference on social computing and its applications (SCA), Karlsruhe, GermanyGoogle Scholar
  26. Froehle CM, Roth AV, Chase RB, Voss CA (2000) Antecedents of new service development effectiveness: an exploratory examination of strategic operations choices. J Serv Res 3(1):3–17CrossRefGoogle Scholar
  27. Füller J, Bartl M, Ernst H, Mühlbacher H (2004) Community based innovation: a method to utilize the innovative potential of online communities. In Proceedings of the 37th Hawaii international conference on system sciences 2004, p 1–10Google Scholar
  28. Gadrey J, Gallouj F, Weinstein O (1995) New modes of innovation: how services benefit industry. Int J Serv Ind Manage 6(3):4–16CrossRefGoogle Scholar
  29. Ganz W, Satzger G, Schultz C (eds) (2012) Methods in service innovation: current trends and future perspectives. Fraunhofer, Stuttgart, pp 1–99Google Scholar
  30. Geiger D, Seedorf S, Schulze T, Nickerson R, Schader M (2011) Managing the crowd: towards a taxonomy of crowdsourcing processes. Proceedings of the seventeenth Americas conference on information systems. Detroit, Michigan, pp 1–11Google Scholar
  31. Gillen BJ, Plott CR, Shum M (2012) Information aggregation mechanisms in the field: sales forecasting inside Intel. Working paper. http://www.hss.caltech.edu/~bgillen/papers/IntelForecast.pdf. Accessed 14 March 2014
  32. Graefe A, Armstrong JS (2011) Comparing face-to-face meetings, nominal groups, Delphi and prediction markets on an estimation task. Int J Forecast 27(1):183–195CrossRefGoogle Scholar
  33. Greeley B (2012) Making sense of the games politicians play. Bloomberg Businessweek. http://www.businessweek.com/articles/2012-08-30/making-sense-of-the-games-politicians-play. Accessed 1 December 2013
  34. Grönroos C (2006) Adopting a service logic for marketing. Mark Theor 6(3):317–333CrossRefGoogle Scholar
  35. Hamel G (2006) The why, what, and how of management innovation. Harvard Bus Rev 84(2):72–84Google Scholar
  36. Hansen MT, Birkinshaw J (2007) The innovation value chain. Harvard Bus Rev 85(6):121–130Google Scholar
  37. Hohmann L (2006) Innovation games: creating breakthrough products through collaborative play. Addison-Wesley Longman, AmsterdamGoogle Scholar
  38. Howe J (2009) Crowdsourcing: why the power of the crowd is driving the future of business. Random House, New YorkGoogle Scholar
  39. Hrastinski S, Kviselius NZ, Ozan H, Edenius M (2010) A review of technologies for open innovation: characteristics and future trends. In Proceedings of the 43rd annual Hawaii international conference on system sciences, p 1–10Google Scholar
  40. IBM (2006) Expanding the innovation horizon: the global CEO study 2006. Technical report, IBM Global Business ServicesGoogle Scholar
  41. Janssen M, Alexiev A, den Hertog P, Castaldi C (2012) A multi-level multidimensional approach for measuring dynamic capabilities in service innovation management. Paper presented at the Druid conference, Copenhagen, p 1–24Google Scholar
  42. Kamp G, Koen PA (2009) Improving the idea screening process within organizations using prediction markets: a theoretical perspective. J Prediction Markets 3(2):39–64Google Scholar
  43. Kindström D, Kowalkowski C, Sandberg E (2013) Enabling service innovation: a dynamic capabilities approach. J Bus Res 66(8):1063–1073CrossRefGoogle Scholar
  44. Kohler M, Feldmann N, Habryn F, Satzger G (2013) Service innovation analytics: towards assessment and monitoring of innovation capabilities in service firms. In Proceedings of the 46th annual Hawaii international conference on system sciences, Computer Society, p 1347–1356Google Scholar
  45. Maglio PP, Spohrer J (2008) Fundamentals of service science. J Acad Mark Sci 36(1):18–20CrossRefGoogle Scholar
  46. Makadok R (2001) Toward a synthesis of the resource-based and dynamic-capability views of rent creation. Strateg Manage J 22(5):387–401CrossRefGoogle Scholar
  47. Massolution (2012) Crowdfunding industry report: market trends, composition and crowdfunding platforms. http://www.crowdsourcing.org. Accessed 14 March 2013
  48. Medeiros J (2014) How pebble kickstarted a trend. Wired Magazine UK. http://www.wired.co.uk/magazine/archive/2014/01/features/how-pebble-kickstarted-a-trend. Accessed 13 March 2014
  49. Muller M, Geyer W, Soule T, Daniels S, Cheng L (2013) Crowdfunding inside the enterprise: employee-initiatives for innovation and collaboration. In Proceedings of the SIGCHI conference on human factors in computing systems 2013, Paris, p 503–512Google Scholar
  50. Muller M, Geyer W, Soule T, Wafer J (2014) Geographical and organizational commonalities in enterprise crowdfunding. In Proceedings of the 17th ACM conference on computer supported cooperative work and social computing (CSCW), Baltimore, MarylandGoogle Scholar
  51. Neely A (2007) The Servitization of manufacturing: an analysis of global trends. In Proceedings of the 14th European operations management association conference 2007, Ankara, p 1–10Google Scholar
  52. Ordanini A, Miceli L, Pizzetti M, Parasuraman A (2011) Crowdfunding: transforming customers into investors through innovative service platforms. J Serv Manage 22(4):443–470CrossRefGoogle Scholar
  53. O’Reilly CA, Tushman ML (2004) The ambidextrous organization. Harvard Bus Rev 82(4):74–81Google Scholar
  54. Plott CR, Wit J, Yang WC (2013) Parimutuel betting markets as information aggregation devices: experimental results. Econ Theor 22(2):311–351MathSciNetCrossRefGoogle Scholar
  55. Schulze T, Indulska M, Geiger D, Korthaus A (2012) Idea assessment in open innovation: a state of practice. In Proceedings of the 20th European conference on information systems (ECIS), Barcelona, paper 149Google Scholar
  56. Smith AM, Fischbacher M, Wilson FA (2007) New service development: from panoramas to precision. Eur Manage J 25(5):370–383CrossRefGoogle Scholar
  57. Soukhoroukova A, Spann M, Skiera B (2012) Sourcing, filtering, and evaluating new product ideas: an empirical exploration of the performance of idea markets. J Prod Innov Manage 29(1):100–112CrossRefGoogle Scholar
  58. Spears B, Lacomb C, Barnett J (2009) Examining trader behaviour in idea markets: an implementation of GE’s imagination markets. J Prediction Markets 3(1):17–39Google Scholar
  59. Starbucks Coffee Company (2011a) Mobile payment debuts nationally at Starbucks. http://news.starbucks.com/news/mobile-payment-debuts-nationally-at-starbucks. Accessed 13 March 2014
  60. Starbucks Coffee Company (2011b) Starbucks mobile transactions exceed 26 million within first year. http://news.starbucks.com/news/starbucks-mobile-transactions-exceed-26-million-within-first-year. Accessed 13 March 2014
  61. Starbucks Coffee Company (2012) Starbucks accelerates mobile payments leadership by choosing square for payments. http://news.starbucks.com/news/starbucks-accelerates-mobile-payments-leadership-by-choosing-square-for-pay. Accessed 13 March 2014
  62. Stathel S (2010) Innovation assessment via information markets. Doctoral dissertation, Karlsruhe Institute of TechnologyGoogle Scholar
  63. Sundbo J (1992) The tied entrepreneur: on the theory and practice of institutionalisation of creativity and innovation in service firms. Creativity Innov Manage 1(3):109–120CrossRefGoogle Scholar
  64. Sundbo J (1997) Management of innovation in services. Serv Ind J 17(3):432–455CrossRefGoogle Scholar
  65. Surowiecki J (2004) The wisdom of crowds: why the many are smarter than the few and how collective wisdom shapes business, economies, societies and nations. Anchor Books, New YorkGoogle Scholar
  66. Susi T, Johannesson M, Backlund P (2007) Serious games: an overview. Report, Skövde, Sweden. http://his.diva-portal.org/smash/record.jsf?pid=diva2:2416. Accessed 8 March 2013
  67. Teece DJ (2007) Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strateg Manage J 28(13):1319–1350CrossRefGoogle Scholar
  68. Tidd J, Hull FM (2006) Managing service innovation: the need for selectivity rather than ‘best practice’. New Technol Work Employ 21(2):139–161CrossRefGoogle Scholar
  69. Tode C (2012) Starbucks reaches 42M mobile payment transactions as app gains momentum. Mobile Commerce daily. http://www.mobilecommercedaily.com/starbucks-reaches-42m-mobile-payment-transactions-as-app-gains-momentum. Accessed 13 March 2014
  70. Vandermerwe S, Rada J (1989) Servitization of business: adding value by adding services. Eur Manage J 6(4):314–324CrossRefGoogle Scholar
  71. van de Ven A, Delbecq A (1974) The effectiveness of nominal, delphi, and interacting group decision making processes. Acad Manage J 17(4):605–621CrossRefGoogle Scholar
  72. van Riel AC, Lemmink J, Ouwersloot H (2004) High-technology service innovation success: a decision-making perspective. J Prod Innov Manage 21:348–359CrossRefGoogle Scholar
  73. van Riel AC, Semeijn J, Hammedi W, Henseler J (2011) Technology-based service proposal screening and decision-making effectiveness. Manage Decis 49(5):762–783CrossRefGoogle Scholar
  74. Vermeulen P, Dankbaar B (2002) The organisation of product innovation in the financial sector. Serv Ind J 22(3):77–98CrossRefGoogle Scholar
  75. Vermeulen P, van der Aa W (2003) Organizing innovation in services. In: Tidd J, Hull FM (eds) Service innovation: organizational responses to technological opportunities and market imperatives (No. 9). Imperial College, London, p 35–53Google Scholar
  76. West J, Bogers M (2014) Leveraging external sources of innovation: a review of research on open innovation. J Prod Innov Manage 31(4):814–831Google Scholar
  77. Wolfers J, Zitzewitz E (2006) Prediction markets in theory and practice. IZA discussion papers, no. 1991. http://hdl.handle.net/10419/33384. Accessed 13 March 2014

Copyright information

© Springer-Verlag London 2015

Authors and Affiliations

  1. 1.Karlsruhe Service Research InstituteKarlsruheGermany

Personalised recommendations