Innovation Day 2025 is on Sunday, February 16, 2025: How important is service innovation these days?

Sunday, February 16, 2025 is Innovation Day 2025. Creativity & Innovation Improve Business Results w/Systems That Bring Innovations to Life!

Place an issue, think about an answer, and before very long you’re finding! Innovation Day is about imagining new, possible ways to do things. How would you be innovative?

The importance of service innovation lay in the understanding that we entered a new era , we are shifting away from business models based on central control, mass production, and economies of scale. Into a new economy that the focus is on the individual. In which customer experience and Value creation, create more financial benefits to the companies rather than products and competition.

In this new economy that can be called “Service economy” or “ Distributed economy” innovation should be created by Services rather than from new technology . Technology mostly become a commodity and no real value is being created therefore the Return On Investment is very low , in order to compensate this trends , companies should start to innovate through innovative services that create more value and experience to customers.

Creativity innovation and enterprenuship?

What's Innovation?

The word itself gets used all the time in the news, in press releases made by governments and universities and in company boardrooms around the world – innovation, innovation, innovation! Not surprisingly, it can bring to mind a variety of meanings depending on the context. Although often associated with discoveries carried out by white-haired scientist-types in high tech industry labs or universities, innovation shouldn't imply only carrying out research and development. Nor is it usually the responsibility of only a small group within of a successful company. Rather, innovation has a much broader definition and considerably wider functions, and should touch all of us every day. It's important to understand that definition and how the concept is different from the concepts of discovery, invention and creativity. Let's start by taking a look at how all of these fit together.

Discovery, Invention, Innovation and Creativity

By now you'll have been through an in-class exercise about these topics, in which we'll have considered the following figure. This is referred to as an Innovation Value Chain because it represents the very general sequence of activities that create value in our society and economy. Simply put: discoveries result in new ideas in the form of knowledge and concepts, inventions result in new technologies and business models, and innovation exploits inventions to allow for the creation of value through commodities, goods, services and experiences.

Innovation involves creating value by bringing together resources that are hard to come by. It applies to small businesses, existing businesses and a range of other types of entrepreneurial ventures such as non-profit ventures. It also applies to you as an individual.

Technological vs. venture model innovation

In a later topic we are going to look at ways of distinguishing between different types of innovations. Understanding what type of innovation you are dealing with is of critical strategic importance when it comes to you deciding how you will react to an innovation, whether someone else has introduced it or whether you plan to introduce it to the marketplace.

For now, let's just distinguish between two main types:

1. A technological innovation is a change made in response to a new or modified technology.

Classic examples of technological innovation are the internet, the digital camera and cell phones, to name but just a few. Whether you or someone else in your industry is responsible for a technological innovation, it can be a game-changer. And under the right circumstances it can provide remarkable opportunities for growth.

For those who wish to dig deeper (than required in this course), responding to this kind of innovation is dealt with in well-known works like Crossing the Chasm (Moore, 2002) and The Innovator's Dilemma (Christensen, 1997).

2. A venture model innovation is a change made in response to a new or modified venture model, or some component of a venture model (such as the value chain, the approach to distribution, the choice of mainstream customer and other such concepts that we will look at later).

Well-known examples of venture model innovation include Southwest Airlines, the Nintendo Wii and technologies like Apples' iTunes and iPhone.

While technological advances were required to enable the success of these examples, it was the unique changes to the venture models that made them successful.

For those who wish to dig deeper (than required in this course), this type of innovation is also known as strategic or value innovation. It is described in detail in Kim and Mauborgne (1997) and Kim and Mauborgne (2005).

Who appreciates innovation?

I think everyone should appreciate innovation, but i can´t imagine anyone accepting it. This is because there is a general thougt that if that innovate they might loose theire job. This isn´t always true because if you do a right innovation you might be able to earn more money without fireing the employees.

I do accept that innovation is good and must be done but it must be done in the right way without hurting anyone.