Service Innovation

Innovation processes in services remain under-researched, but recently large-scale surveys have been conducted which allow for a more systematic appraisal of the level and scope of innovation in services. To date, much of the literature on innovation in services focuses on the adoption and use of information and communication technologies (ICTs). Innovation in services, and services innovation, should, however, be understood in broader terms, and this understanding should extend to non-technological innovation. This paper presents evidence from a recent large-scale survey of innovation amongst German commercial service firms. It shows that services are much more active with respect to innovation than is widely thought. They are innovative in terms of being producers of service and process innovations. From our broader perspective, we examine the pattern of innovation as it relates to the standardisation-particularisation of service products, across a range of service sectors and across firms of various sizes. The production of bespoke or customised services shaped by client inputs has long been considered a defining characteristic of many services, and one that has affected their innovation potential. The present analysis reveals a pattern of diversity in behaviour, which reflects the diversity amongst service firms, and demonstrates the need for more subtle and differentiated analyses of services and services innovation.

This study documents variation across industries in creditors’ perceptions of the risk of information technology (IT) investments. The associations we document between IT investments and both initial bond ratings and yield spreads suggest that credit-rating agencies and bond investors consider IT investments in automate and informate industries less risky than those in transform industries. We document that IT investments are associated with more volatile future cash flows in transform industries than in automate or informate industries. The findings indicate that bond investors prefer IT investments in automate industries, where the cash flow payoffs to IT investment are smaller but more stable than in transform industries. Overall, these findings provide the important insight that bondholders’ perceptions of IT investments vary across industries based on bondholders’ aversion to the riskiness and the lack of collateralizability of IT investments. Senior managers should recognize that IT investments have implications for both operational performance and financing costs (e.g., costs of debt) of the firm, and they should consider the potential financial benefits of increased IT capabilities, such as the willingness of corporate bond investors to accept lower financing costs.

在线旅行社的服务创新管理：中国的实证分析研究目的目前关于在线旅行社(OTA) 的服务创新管理的研究相对贫乏。本研究旨在阐明OTA的服务创新管理的具体元素。研究设计/方法/途径：本研究以携程网（中国最大的在线旅行社）为对象进行深入案例分析。通过改善已有的基于新服务开发;理论（NSD）, 以及综合服务创新成功要素的理论框架从而提出一项连贯的服务创新管理理论框架。基于理论综合以及实证分析，本研究改编，整合和改善了NSD理论框架从而为在线旅行社的服务创新管理框架所适用。研究结果：被提议的理论框架包括三个层面以及相关管理元素：1） 资源，包括利益相关者，科技和系统；2）应用环境，包括创新战略，结构和文化；以及3）构思能力，包括概念生成，概念应用。管理元素与不同的成功要素相结合。这些层面，管理元素和成功因素作为提出框架的组成部分。研究理论限制/启示：本研究为学术领域提供了分析框架，从而进一步了解和诠释了在线旅行社的服务创新，从而作为今后研究的起点。研究实践启示：本分析框架促使在线旅社管理者在服务创新中借用更加结构化的方法，并且鼓励政策制定者来设计相关的干预措施研究原创性/价值：本研究提供了在中国的环境下迈向在线旅社服务创新的第一步。提议的框架对其他产业也存在潜在贡献。

This study investigates how workers' gender, work experience, designated division, and appointment affect (i) their perception of information technology (IT) within the organisation, (ii) their self-perceived capacity in knowledge management (KM), and (iii) their perception of organisational performance (OP). Furthermore, the study also examines the correlation among the above three dimensions by using t-test, one-way Analysis of Variance (ANOVA), Pearson correlation and stepwise regression analysis. These results show a positive correlation among IT application, KM capacity, and OP. In addition, the study discovers that (i) adequate IT investment and acceptance will improve employees' KM capacity, (ii) appropriate IT investment and training and employees' knowledge replication ability can better predict organisational outcomes, and (iii) employees' KM capacity is a better predictor of OP than IT application. Results also show that personal factors do affect workers' perception of the organisation's IT application, their KM capacity, and overall OP.

Customer service plays an essential role in firm performance. In this perspective, customer service process should be constantly improved to meet the expectations of customers. Despite the essence of customer satisfaction and its relations to organizational performance firms still fails to satisfy its entire customer segments. This study examines how the interaction between service innovation and total quality management can contribute to customer satisfaction. The study proposes a framework that seeks to aid firms on how to develop and implement quality customer service for its customers. This model takes into consideration the perceived expectation of customers in relation to value and quality.

Although service innovation management is emerging as a distinct area of research, empirical investigations in this field remain limited and fragmented when compared to “product” innovation research. Service innovation can be defined in terms of newness of the service offering attributes or newness in the service process. We show how the distinct characteristics of services have specific consequences for service innovation management. We explore the substantive research on the nature of the innovation process in services and focus on the appropriateness and application in practice of a formal or unstructured approach to the service innovation. We synthesize empirical work on front‐end service opportunity creation and analysis and back‐end implementation activities. Service development is viewed from two perspectives; customer‐facing front‐office activities and back‐office operations. Efforts to align both perspectives are emerging. We discuss the limitations of empirical research investigating success factors for service innovation. This body of literature is dispersed and small compared to “product” innovation success‐factor studies. This is attributed to difficulties in developing meaningful metrics and common units of analysis. We suggest that a supportive organizational environment, active role of employees, and interaction with external actors are important emerging antecedents of service innovation success. Our conclusion proposes that service innovation management research is moving beyond replication of product innovation advances by drawing on new paradigms to offer fresh perspectives.

Ao longo dos anos, a Tecnologia da Informação (TI) vem de maneira crescente apoiando as atividades mais diretamente ligadas à produção. Sendo inicialmente suporte de tarefas mais simples, a TI passa a estar presente em todas as etapas do processo produtivo, abrangendo o desenvolvimento de produtos e processos. O Planejamento e Controle da Produção (PCP) desponta como uma área na qual a TI pode trazer significativo impacto nos resultados obtidos, possibilitando novas alternativas de estratégias de operações e mesmo de negócios. Os sistemas MRP, MRP II e ERP são exemplos de como a TI pode apoiar o PCP. Por outro lado, persistem as dúvidas quanto aos resultados obtidos com os investimentos em TI. Para avaliar os impactos de tais aplicações nas operações, é necessário abordar os resultados obtidos em relação aos objetivos, metas e requisitos da área de produção e da empresa como um todo, isto é, considerando a eficácia destas aplicações de TI. Este estudo apresenta um processo de seleção de alternativas de fornecimento de uma nova aplicação de TI voltada ao PCP de uma indústria. A pesquisa foi desenvolvida por meio de um estudo de caso em uma indústria de grande porte, no qual são discutidos os impactos da TI na gestão da operação e do negócio da empresa, bem como o uso do AHP (Analytic Hierarchy Process) como ferramenta de apoio à decisão.

The evaluation of information technology (IT) investments has been a recognised problem area for the last four decades, but has recently been fuelled by rising IT budgets, intangible benefits and considerable risks and gained renewed interest of both management and academics. IT investments already constitute a large and increasing portion of the capital expenditures of many organizations, and are bound to absorb a large part of future funding of new business initiatives. However, for virtually all firms, it is difficult to evaluate the business contribution of an IT investment to current operations or corporate strategy. Consequently, there is a great call for methods and techniques that can be of help in evaluating IT investments, preferably at the proposal and decision-making stages. The contribution of this chapter to the problem area is twofold. First, the different concepts, which are used in evaluation are discussed and more narrowly defined. When speaking about IT investments, concepts are used that originate from different disciplines. In many cases there is not much agreement on the precise meaning of the different concepts used. However, a common language is a prerequisite for the successful communication between the different organizational stakeholders in evaluation. In addition to this, the chapter reviews the current methods for IT investment evaluation and puts them into a frame of reference. All too often new methods and guidelines for investment evaluation are introduced, without building on the extensive body of knowledge that is already incorporated in the available methods. Four basic approaches are discerned: the financial approach, the multi-criteria approach, the ratio approach and the portfolio approach. These approaches are subsequently compared on a number of characteristics on the basis of methods that serve as examples for the different approaches. The chapter concludes with a review of key limitations of evaluations, suggestions on how to improve evaluation practice and recommendations for future research. This chapter draws on earlier work as published in Renkema and Berghout (1997), Berghout (1997), and Renkema (1996; 2000).

In the last twenty years, firms have witnessed an explosive growth in information technology (IT) investment. This is true both for manufacturing industries and service industries. The existing literature on IT investment and organizational strategic performance, however, provides very little evidence linking IT investment to organizational strategic and economic performance. The present research investigates whether certain IT investment measures are useful in differentiating organizational economic performance among the most effective information technology users. Eight measures were used to represent IT investment. Ten ratios were utilised to measure organizational strategic and economic performance. The sample organizations were analysed using multidimensional cluster analysis. The results of the analysis suggest that a clear distinction exists between organizations in terms of IT investment and organizational strategic and economic performance. This is true even among the most effective users of information technology. The results also suggest that the majority of the organizations that are investing more in IT seem to be achieving superior strategic and economic performance.

The evaluation of information technology (IT) investments has been a recognised problem area for the last four decades, but has recently been fuelled by rising IT budgets, intangible benefits and considerable risks and gained renewed interest of both management and academics. IT investments already constitute a large and increasing portion of the capital expenditures of many organizations, and are bound to absorb a large part of future funding of new business initiatives. However, for virtually all firms, it is difficult to evaluate the business contribution of an IT investment to current operations or corporate strategy. Consequently, there is a great call for methods and techniques that can be of help in evaluating IT investments, preferably at the proposal and decision-making stages. The contribution of this chapter to the problem area is twofold. First, the different concepts, which are used in evaluation are discussed and more narrowly defined. When speaking about IT investments, concepts are used that originate from different disciplines. In many cases there is not much agreement on the precise meaning of the different concepts used. However, a common language is a prerequisite for the successful communication between the different organizational stakeholders in evaluation. In addition to this, the chapter reviews the current methods for IT investment evaluation and puts them into a frame of reference. All too often new methods and guidelines for investment evaluation are introduced, without building on the extensive body of knowledge that is already incorporated in the available methods. Four basic approaches are discerned: the financial approach, the multi-criteria approach, the ratio approach and the portfolio approach. These approaches are subsequently compared on a number of characteristics on the basis of methods that serve as examples for the different approaches. The chapter concludes with a review of key limitations of evaluations, suggestions on how to improve evaluation practice and recommendations for future research. This chapter draws on earlier work as published in Renkema and Berghout (1997), Berghout (1997), and Renkema (1996; 2000).

This paper reports on the changing nature of a range of information technology (IT) application skills that students declare on entering an accounting degree over the period from 1996 to 2006. Accounting educators need to be aware of the IT skills students bring with them to university because of the implications this has for learning and teaching within the discipline and the importance of both general and specific IT skills within the practice and craft of accounting. Additionally, IT skills constitute a significant element within the portfolio of employability skills that are increasingly demanded by employers and emphasized within the overall Higher Education (HE) agenda. The analysis of students' reported IT application skills on entry to university, across a range of the most relevant areas of IT use in accounting, suggest that their skills have continued to improve over time. However, there are significant differential patterns of change through the years and within cohorts. The paper addresses the generalizability of these findings and discusses the implications of these factors for accounting educators, including the importance of recognising the differences that are potentially masked by the general increase in skills; the need for further research into the changing nature, and implications, of the gender gap in entrants' IT application skills; and the low levels of entrants' spreadsheet and database skills that are a cause for concern.

This paper investigates the impact on productivity of combined changes in information technology (IT) investments and workforce composition of life insurance companies. Workforce composition is defined in terms of three broad classes: clerical, managerial and professional. Hypotheses on the combined impact of changes in IT investments and workforce composition on productivity are proposed and empirically tested on a sample of companies from the US life insurance industry. Companies are clustered based on two main strategy alternatives, focus on a market niche vs diversification. In niche companies, higher IT investments accompanied by a decrease in the clerical and managerial components of the workforce are found to have a positive contribution to productivity. On the contrary, higher IT investments in conjunction with a decrease of the professional component show a negative effect. In diversified companies, increasing IT investments show a positive contribution to productivity when accompanied by a decrease of the professional component and a growth in the clerical and managerial component of the workforce. Findings are discussed in the light of fundamental competitive goals in the industry.

Despite its universal appeal, little has been done in the way of empirical research to probe into the role of formal information technology (IT) investment evaluation practices and its influence on IT governance and performance in African firms. A preliminary survey of 74 firms from South Africa, Nigeria and Zimbabwe, reveal that while firms are generally aware of formal IT investment appraisal techniques and IT value realisation prescriptions, relatively less formality is actually applied to appraising, managing and realising IT benefits. This research unveils many issues in exploiting IT benefits, with a majority of firms acknowledging substantial targeted benefits losses. Addressing how IT investments can be managed more effectively using formal investment appraisal and benefits management practices, to predictably realise intended payoffs remains a top concern for African firms and the continent’s IT researchers. Key words: Information technology (IT), IT governance, IT investment appraisal, IT benefits management, IT performance.

The aim of this research is to propose a model that relates information technology (IT) investments, supply chain governance (SCG) and performance together. For this purpose, a pilot study involving both a qualitative and a quantitative stage was conducted. The qualitative analysis, consisting of an extensive literature review and two case studies conducted in six major, globally-relevant Brazilian companies, led to the development of an initial model. This model was refined during the quantitative stage that involved 38 executives from large national companies. IT was found to be one of the main drivers of SCG influencing companies' supply chain performance. The final model consists of 5 constructs and 26 elements. Regarding the SCG constructs: (a) a new element 'formal contracts', emerged in the 'contractual SCG' construct; (b) the element 'cooperation' was not confirmed in the 'relational SCG' construct; (c) the element 'transparency' was considered an important element in the 'transactional SCG' construct. Five new elements emerged in the 'IT investment' construct. Market aspects were highlighted as being relevant in the 'supply chain performance' construct. Thus, the model includes elements that can be analyzed in order to shed light on how IT investments influence SCG and supply chain performance.

Does IT investment improve bank performance? Evidence from Europe