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ANNUAL REPORT 2017

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INDEX

C S I A N N U A L R E P O R T 2 0 1 7

INTRODUCTION

FACTSCenter for Service Innovation (CSI) is acoordinated effort by the Norwegian School ofEconomics (NHH) to focus on the innovationchallenges facing the service sector. It is one of the38 Norwegian Centers for Researched- basedInnovation (SFI), partly funded by The ResearchCouncil of Norway (RCN).

CSI’s total budget is NOK 164 million over eightyears, with 80 million of this granted by RCN.NHH is the host and administrative institution forthe center, in collaboration with its contractresearch unit, Centre for applied research at NHH(SNF). The additional research partners areSINTEF and The Oslo School of Architecture andDesign (AHO). Two international institutionsparticipate as cooperating partners: KarlstadUniversity (KAU) and Copenhagen BusinessSchool (CBS). Four of the Norwegian businesspartners involved in the center; Telenor, Posten,EVRY and NorgesGruppen, are all leading serviceproviding partners, with international expansionthrough service innovation as a strategic priority.In addition, Bergen Municipality became a serviceprovider member January 2017. inFuture, BEKK,Livework, Induct and Design and ArchitectureNorway (DOGA) participate as businessknowledge partners specializing in innovationprocess management and ICT-supported serviceinnovation. The employer-unions Virke andAbelia participate as bridging partners providingCSI with an unique access to their members.

VISION, AIMS ANDRESEARCHCenter for Service Innovation (CSI) will, throughits internationally recognized research and itscollaboration between research and commercialpartners, support innovation in service andservice organizations. CSI aims to:

• enhance the service innovation capabilities ofboth business and research partners,

• improve the commercial success of Norwegianservice providers’ service innovation activities,

• measure firms’ innovativeness as perceived bytheir customers

The main activities contributing to CSI’sachieving this aim are research, researchdissemination, education, and partnernetworking. CSI research is organized in fourtopics:

1. Business model innovation 2. Managing and organizing for serviceinnovation and transformation

3. Service design thinking and customerexperience

4. Service innovation economics

CSI contributes to education through master anddoctoral courses at NHH, master courses at AHOand at the University of Oslo (UiO) throughSINTEF. Finally, partnernetworking activitiesare important for disseminating knowledgeamong CSI- partners and the rest of the serviceinnovation community and includes a number ofactivities that we present throughout this report.

INTRODUCTION 3

VISION AND OBJECTIVES 3

BOARD OF DIRECTORS' REPORT 4

RESEARCH PLAN AND STRATEGY 6

ORGANIZATION 8

VOICES FROM RESEARCHERS AND PARTNERS 12

HIGHLIGHTS 20

RECRUITMENT, INTERNATIONAL COOPERATION AND COMMUNICATION 30

ATTACHMENT TO THE REPORT 40

PUBLICATIONS 43

STATEMENT OF ACCOUNTS 50

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Krogh (Director, Bekk consulting), as leader.Other members were: Patrick Waldemar (Chief of technology science, Telenor Research), Truls Fjeldstad (CMO, NorgesGruppen), Per Egil Pedersen (Professor, University College of southeast Norway), Daniel N. Grönquist (SVP,Evry SDL), Camilla A. C. Tepfers (Partner,InFuture), Magne Supphellen (Professor, NHH)and Tor W Andreassen (Director, CSI). The taskforce’s mandate was:

“Specify the new research center’s researchfocus and subsequent value proposition.This also includes exploring potentialpartners’ interest in and commitment to theestablishment of a new national researchcenter. Recommendations to be presented toCSI’s board of directors in the 29 September2017 meeting.”

CSI’s board endorsed the report from the taskforce 29 September outlining the proposed valueproposition for TIE (Technology-drivenInnovations in an Ecosystem):

“TIE will study how changes in technologygives ground for new companies, newbusiness models, products and services, andmarkets. The context will be innovations inan ecosystem (but not limited to) with thepurpose of scaling actors.”

With the following benefit statements:

”TIE’s research-based insight helps actors topursue “game-changing” innovations inorder to:a) better succeed in their pursuit for creatingvalue for customers,

b) better succeed in their transition towardmore digital business models,c) better succeed in commercializing andscaling disruptive innovations andd) better succeed in creating new markets.”

11 November, CSI’s Chair, Harald Krogh, and CSI’sDirector presented the future plans to NHH’s newrector, Professor Øystein Thøgersen, and hisrector team who gave their warm support forcontinuing the CSI-work after the end of thegrant. The Rector team encouraged CSI’smanagement team to explore three avenues: a)apply for a new SFI-grant and secure funding forthe next eight years, b) contract with partnercompanies who commit to phase two of CSI , andc) a combination of the two.

On behalf of the Board of Directors, I would like toexpress their gratitude to all parties who havebeen involved in making 2017 an excellent year forCSI.

BOARD OF DIRECTORS' REPORT

On 1 January, Nina Skage, CEO NHH, replacedRector Frøystein Gjesdahl as Chair of CSI’s boardof directors who met four times during 2017: 2 xregular board meetings and 2 x extended boardseminars. In addition, Consortie meetings wereheld prior to each board meeting. 27 January,Bergen Municipality Health Care section andInnovation, Finance, and Property section becamea new CSI-partner.

2017 AT A GLANCE2017 has been a productive and rewarding year forCSI and its partners. CSI’s day-to-day activitiesare three:1. Provide partners with relevant innovationcapabilities

2. Educate and train PhDs and PostDocs3. Mentor master students and publish researcharticles.

To professionalize CSI’s external communication,the communication bureau CorporateCommunication was hired to develop acommunication plan for 2017 and beyond 2019.The long-term goal is to position CSI as Norway’sleading (service) innovation research center.

Short-term goals: Complete the current SFIperiod in style• Highlight value to partners and ensure greaterpartner involvement in CSI activities

• Communicate research results via journals,media channels and social media

Long-term: Position CSI for financing after 2019• Build relations with relevant political players• Recruit additional ambassadors amongpartners, NHH and NHH alumni

• Make CSI’s research relevant to the SMEmarket, and highlight CSI’s role as a facilitatorof innovation between large companies andSMEs

The plan was presented 12 May by Maria MelfaldTveten, partner Corporate Communication . Theboard complemented the work, analyses, andrecommendations and applauded theimplementation of the plan.

CSI’s main vehicle for providing partners withinnovation capabilities from our research areseminars (seven including two book launches:“Innovation for Trust” on Edward ElgarPublishing and “New Business Models inRetailing” on Universitetsforlaget), partnermeetings, newsletters (five CSI newsletters and 15“Food for thought”-letters), contributing in thepublic debate (CSI researchers appeared morethan 50 times in national media: interviews onnational radio and TV, newspapers, andchronicles) plus numerous public conferences askeynote speakers.

During 2017 CSI researchers have met four timesfor one-day research seminars including a threedays seminar in Krakow, Poland, to advanceongoing projects and to plan ahead.

Finally, Helge Thorbjørnsen (Professor and ViceRector Research, NHH), Harald Krogh (Director,BEKK Consulting), Irene Haukås Moe (Centercoordinator, CSI), and Tor W. Andreassen(Director, CSI) met with CSI’s scientific advisoryboard for a one-day seminar - update and lookingforward - during the Frontiers in ServiceConference in New York in July.

LOOKING FORWARDIn response to CSI’s board of directors´ 9December 2016 decision to develop a new valueproposition and research area for CSI’s next phase(i.e. after May 2019) specific enough for new andexisting partners to decide whether to join, a newtask force was defined. Members are: Harald

On behalf of the boardNina SkageChair of CSI board, NHH

THEME 1:

BUSINESS MODEL INNOVATIONCSI will develop smart, service oriented businessmodels to solve problems related to energy waste,pollution, inefficiency and social responsibility.

CSI will also study empirical antecedents of businessmodel choices, the interrelationships of businessmodel dimensions and how business model choicesaffect performance under various contingencies,including contingencies of service specific elements.

THEME 2:

MANAGING ANDORGANIZING FORSERVICE INNOVATIONAND TRANSFORMATIONCSI will address the importance and potential oforganizational culture and transformation in buildinginnovative organizations. The theme emphasize howstrategically relevant cultures may represent sourcesof competitive advantages for service providers, andhow corporations should bring about strategic change.In this theme CSI also explore design thinking as aninnovative approach towards change managementand to build and nurture change capacity in modernservice providers.

THEME 3:

SERVICE DESIGNTHINKING ANDCUSTOMEREXPERIENCEDesign thinking applied to services is consider anincreasingly powerful approach for innovation,covering not only the process of developing a newservice or product, but the whole way of approaching afirm’s delivery of customer value added. Competitiveadvantage can be enhanced through service, i.e. theapplication of specialized competences (knowledgeand skills), through processes, and performances forthe benefit of customer experience.

THEME 4:

SERVICE INNOVATIONECONOMICS

The purpose of this research theme is to establishmechanisms to measure financial return on serviceinnovation. The core delivery is a practical modelcapable of estimating, predicting and optimizing theeffects of service innovation investments.

RESEARCH PLAN ANDSTRATEGYCSI is unique in its inclusion of large serviceproviders, business knowledge partners, researchinstitutions, and bridging partners into itsresearch environment. This allows for deeperstudies of innovation in the service sector. Basedon the innovation challenges presented in theintroduction, CSI is focusing its research through“Insight driven service design and innovation”within four main research themes, as illustrated

in figure 1. With increased use of technology moredata can be captured from production andcustomers. But data has meaning only when onecan enhance their value to insight - an insight thatwill be employed within four areas: businessmodel innovation, organizational innovation,market offer innovation, and financial aspectsassociated with innovations.

Figure 1: CSI conceptual model

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CSI will conduct empirical studies of the firm-level interactions of the innovation system. We also investigateregulation as a source of service innovation and how the innovation system interacts with infrastructural elementsthat may influence the potential for innovation, such as transport, communication, and ICT services.

Within the four research themes, the CSI research tasks are organized in 7 work packages (WPs). The WPs areassociated with each research theme and organized accordingly. All of the WPs are organized with a project leaderchosen from one of the CSI partners. Each WP involves personnel from a number of business and research partners.Activities in the WPs are closely integrated.


BUSINESS MODEL INNOVATION

MANAGING ANDORGANIZING FORSERVICE INNOVATIONAND TRANSFORMATION

SERVICE DESIGNTHINKING ANDCUSTOMEREXPERIENCE

SERVICE INNOVATIONECONOMICS

1 2

3 4

THE CONSORTIUMCSI is established by a consortium of four nationalresearch partners, two international researchpartners and 12 user partners. The partnersappoint one member each with a personalsubstitute for the Consortium meeting. TheConsortium meeting prepare issues of strategic

choice for the CSI board. The Consortium meetingis also involved in preparing the annual work planwhich is submitted to the board. The Consortiummeeting shall convene at least twice a year.Partner categories and partner interactions areillustrated in the figure below.

MANAGEMENTCSI’s management team, which is responsible forexecuting CSI’s strategy and the daily operationsof the center, consists of: Managing Director,Professor Tor Wallin Andreassen (80%), Centercoordinator, Irene Haukås Moe (100%),

and Director of Partner Relationships, Associateprofessor II Annita Fjuk (20%), Telenor Group.Every Friday they deliberate for an hour on issuespertaining to current and upcoming events.

ORGANIZATION

Tor W. Andreassen Irene Haukås Moe Annita FjukManaging Director Center Coordinator Director of Partner

Relationships

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"My interest is in the futurebecause I am going to spendthe rest of my life there."

Charles Kettering

INTERNATIONAL ADVISORY BOARD

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PARTNER NAME

NHH Nina Skage (Chair)

NHH Frøystein Gjesdal / Therese Sverdrup

Telenor Bjørn Taale Sandberg

EVRY Daniel Grönquist

Posten Norge Hans-Peter Daae

BEKK Consulting Harald Krogh

Virke Vibeke Hammer Madsen

Abelia Håkon Haugli

SINTEF Bjørn Skjellaug

AHO Ole Gustavsen

The science of CSI is expected to attain aninternationally recognized level. For this to beachieved, we established in 2014 a distinguishedInternationally Scientific Advisory Board (ISAB). ISAB

members meet CSI annually for review and advice ofresearch at all levels: vision, focus, research programs,participations of senior scientists, activities of PhDstudents etc.

NAME INSTITUTION COUNTRY

Dr. James Spohrer IBM USA

Dr. Irene Ng University of Warwick UK

Dr. Roland Rust University of Maryland USA

Dr. Janet McColl-Kennedy UQ Business School Australia

Dr. Timothy Keiningham St. John's University USA

Dr. Stephen L. Vargo University of Hawaii USA


CSI’s board of directors is responsible fordeveloping and adjusting research themes andnew innovation projects (WPs) over time. Userpartners hold the majority positions on the CSIboard, on which the research partners are also

represented. The board consists of ten memberswith representatives from the host institution,user partners, KIBS- partners and researchpartners. All user partners are either directly orindirectly represented in the CSI board.

BOARD OF DIRECTORS


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VOICES FROMRESEARCHERSAND PARTNERS

DESIGN THINKING – WHAT’S NEXT?Design thinking (DT) is not new. It is howeverevolving rapidly as transformation processes incompanies and the competitive landscape change.In today’s digitalization, characterized by rapidchanges, disruptions, and increased complexity,high uncertainties have become the norm ratherthan the exception. To handle the uncertainties,an increasing number of companies embrace DTas a new way to power creative problem-solving,drive innovations and to deliver differentiallyimproved customer experience. Iterative and fastlearning processes of observations, ideation,prototyping and testing with customer andbusiness actors benefit companies to create newand innovative customer value at low risks. Itmakes them better nailing the customer’s jobsexperientially better, and to compete against luck.

There are several areas where DT can make asignificantly difference in the coming years, buttwo are drawn specifically attention here: 1.Creating customer value when introducingenabling technologies, and 2. Capability forbehavioral change in digital transformations.Concerning enabling technologies: AugmentedReality (AR)/Virtual Reality (VR) are uniquelyexperiential, allowing to visualize complex ideasand engaging customers in completely new waysof prototyping. AR/VR allows immersion ofcustomers in a future experience, and is powerfulfor achieve their feedback early in thedevelopment process. Furthermore, advanceddata analytics will make it possible to complementthe qualitative research characterizing DT.Rather than relying exclusively on self-reportedbehaviors and stories, companies will be able tomeasure and understand how a new product orservice is adapted in digital service ecosystem inwhich it is placed. And last, Artificial Intelligence(AI) will change human interactions. Due to theexpected widespread human impact, it'simportant to pay attention beyond thetechnological playgrounds and constantlyconsider what customer’s jobs and needs thetechnologies will enable experientially better incertain circumstances and situations. Therefore,DT practices and research must increasinglyfocus on what customers value AI will create in

certain contexts and situations.

However, the potential value of the enablingtechnologies will only happen if companies adaptprinciples of DT into their organizations and theirnew ecosystems, and continually and flexiblyrespond to the uncertain and rapidly changingbusiness landscape. This implies to foster newbehavior within which the different businessactors continually respond fast learning andcreativity towards new discoveries that will helpthe customers to get their jobs done. DTencourages new behaviors, relieving employeesand managers to consciously change what they doand how to make decisions. Research has shownthat the value of prototyping is largely related tomaking ideas explicit and tangible, and to directlyengaging both customers and decision makers.Research has also shown that just as important asthe prototypes themselves are the processes ofcreating, testing and refining them. Even thoughan increasing number of small and largecompanies have started to embrace DT as a part oftheir strategy, and has initiated up-skilling andcoaching of employees and management teams,research is still limited on how DT is adapted andinstitutionalized in existing business logics, andthus become a means in the digitaltransformation. This will encourage anintegration of DT with a number ofinterdisciplinary research areas, includingstrategy, management and transformation.

"The future is already here - it'sjust not evenly distributed."

William Gibson

Written by Annita Fjuk, PhD

NORWEGIANINNOVATION INDEX

The Eurostat data show that most firms justifytheir innovation failures or unwillingness toinnovate by blaming customers. Managers assertthat the main problem lies in the low demand fornew products and services. This attitude reflectsthe limited understanding of how customers reactto firms’ innovation efforts. The existing sourcesof systematic information on innovation effortsand innovation performance typically rely onmacroeconomic indicators (e.g., Global InnovationIndex, Bloomberg Innovation Index) or self-reports by managers or experts (e.g., CommunityInnovation Survey, Fast Company World’s MostInnovative). These top-down and inside-outperspectives are undeniably valuable, but theyneglect the experiences and opinions ofinnovation recipients.

At the CSI, we have developed and introduced analternative way of assessing firms’ innovationactivities by systematically capturing customer

emotions and perceptions – the NorwegianInnovation Index (NII). Our point of departure isthat

1. countries per se cannot be innovative butcompanies and institutions can and

2. customers as recipients of innovations, are thebest judges of innovations.

We use a theoretically-derived measurementinstrument and let customers evaluate their firms.We then aggregate these evaluations into firm-,industry-, and country-level data. In this sense, theNII represents a unique, bottom-up approach tomeasuring innovativeness. The NII specificallyaddresses the firm’s ability to introduce new ideasto the market – according to the market itself. Weintentionally avoid such common approximations

of innovativeness as the amount of R&Dinvestments, patents, or internal researchers orthe degree of technological complexity andnovelty, because these indicators are more suitablefor assessing inventiveness. By doing so, we stayfaithful to the very definition of innovation thatpresumes the commercial application of a newidea.

Measuring perceived firm innovativenessprovides many strategic insights, especially incombination with measuring satisfaction/quality.By acknowledging the importance of both thesemeasures, we view quality as a ticket to play andinnovativeness as a ticket to stay on the market.Understanding the customer perspective is crucialfor both firm performance and socialdevelopment. Those firms that pay too muchattention to the objects of innovations – such asproduct attributes and production costs –eventually lock-in on their own operations and

profitability, “overshoot” their customers’ needs,and lose market positions to more customer -focused firms. The NII brings attention to theimportance of focusing on the subjects ofinnovations, i.e., customers, their experiences,emotions, perceptions, and behavior. We believethat this focus will necessarily lead to a broaderand more sustainable perspective on innovation,which can increase chances of ensuring not onlyfirms’ own growth but also positive contributionsto the society.

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Written by Seidali Kurtmollaiev,CSI postdoc, NHH

Written by Inger G. Stensaker, Professor, NHH

MANAGING RADICALAND DISRUPTIVEORGANIZATIONALCHANGE

Managers across industries are increasinglyconcerned about disruptive innovations. Driven bytechnological development, such innovationsdramatically alter established ways of doingbusiness and render established products,services, capabilities, and organizationalprocesses more or less worthless. Disruptiveinnovations are game-changers!

This creates exciting opportunities fornewcomers. Indeed, Clayton Christensen atHarvard, who holds specialized expertise ondisruptive innovation, puts his money on thenewcomers and argues that established firms willstruggle as they typically continue trying toimprove high-quality, expensive andinaccessible solutions rather than opt forsimpler solutions. The inertial forces and corerigidities within established firms are well-known particularly for firms that have enjoyedsubstantial success.

However, for established firms in matureindustries it is not a matter of eitheremphasizing the current businessor responding to disruptiveinnovation – they must do both!Existing products and servicescontinue to generate currentrevenue streams without which the

firm will not survive, yet new products andservices will eventually replace and potentiallycannibalize the existing business. According toSchibsted, you can either cannibalize yourself orstand by and watch others do it. The million dollarquestion for established firms then becomes: Howcan we innovate and develop new business thatpotentially cannibalizes the existing business,while maintaining sufficient emphasis on existingbusiness?

Michael Tushman at Stanford has along with anumber of colleagues systematically builtempirical evidence from various industries overthe last fifteen years suggesting that established

firms can indeed succeed with disruptive change.If we look to Norway, Schibsted and Telenorprovide evidence of this. So what do successfulestablished firms do to tackle the challenge? Themost well-known and popular organizationalsolution for managing radical and disruptivechange is the ambidextrous solution.

The ambidextrous solution handles parallelprocesses of exploitation and exploration bystructural decoupling. It involves establishing aseparate organizational unit mandated withinnovation. That way, the new unit can secureexploration and innovation, while establishedunits take care of existing business and secureefficiencies. Such a solution requires that the CEOis able to maintain a dual focus and that a unifyingvision is developed at the corporate level, as thevarious business units will have very different, yetcomplementary goals. It also requires that theunits have decision-making authority. The newunit needs to be allowed to develop a moreentrepreneurial mindset, with a separate identityand culture and distinct capabilities that willsubstantially differ from the established units.

Maximum separation from existing business mustbe secured to avoid cross-contamination and toallow sufficient space for innovation. The role ofthe corporate-level CEO must not beunderestimated. The ambidextrous solution relieson the CEO providing sufficient resources for thenew unit and supporting and protecting it from theestablished units, which are likely to challenge thenew unit and the people working within it.Examples of established firms in matureindustries that have adopted the ambidextroussolution include: USA Today, Nestlé, Schibsted,Telenor, DNB and Nordea. The beauty of thesolution is that it can be scaled up or down to fiteither large established firms or smallerorganizations – the key mechanism lies in thestructural separation.


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Figure: The ambidextrous solution

From Center for Service Innovation (CSI) toTechnology-driven innovations in an ecosystem(TIE)

The current CSI`s grant and funding fromResearch Council of Norway (RCN) ends May2019. According to RCN’s grant and CSI`scontinuation strategy, which was approved by theBoard of Directors December 2016, CSI shall,building on current CSI, continue into a newresearch center located at Norwegian School ofEconomics (NHH).

During 2017, a task force explored, and defined, avalue proposition and research areas for the newresearch center. Renewing CSI’s grantfrom RCN, securing market funding frompartners, or a combination, requires avalue proposition and research agendathat is not only relevant and interesting topartners but can be addressed throughrigorous research methods leading toexcellent publications and findings ofhigh value for partners.

Efficiency innovations (i.e. reducingcosts), sustainable innovations (i.e.improving market offering), anddisruptive innovations (i.e. creating new

solutions) are three different types of innovationsaimed at improving firms´ performance andconsumers everyday life and individual well-being. Our focus will be the two latter, i.e.innovations that create value for customers ratherthan reduce costs for firms. We call theseinnovations down-stream innovations.

In down-stream activities (i.e. toward end-customers), the use of modern technology will becentral in creating customer value and formingnew business models that creates, delivers,captures, and communicates value in a moreefficient and effective way.


TOWARD A NEW RESEARCHCENTER

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Following this, our proposed value proposition forthe new center (working title CSI 2.0) is:

“CSI 2.0 will study how changes in andexperimentation with technology givesground for new companies, new businessmodels, products and services, and markets.The main target will be innovations in anecosystem (but not limited to) with thepurpose of scaling actors.”

Fundamental to our thinking is a) technology anddigitizing market offering and business models tocreate innovations of high value for customers andb) that cooperating (but not always) within aninnovation ecosystem of actors will provide morepowerful and agile innovation power than isolatedin-house innovation. From this, three majorresearch areas emerges:

1. Issues pertaining to complementors’cooperation with suppliers, focal firm, andcustomers in providing innovations of highcustomer value.

2. Strategy, leadership, and organizational issuespertaining to focal firm’s transformation toworking within an ecosystem, transition towarda digital business model, and creating acustomer-centric innovation culture.

3. Issues pertaining to sourcing innovation powerfrom suppliers and customers when co-creatinginnovations of high customer value foradoption, scaling, and growth.

From previously reactive adapting to markets, newbusiness models can be designed to create/co-create new markets. A high-level view of theproposed research areas involving four mainactors - focal firm, suppliers, complementors, andcustomers - is illustrated below:

In summary, we propose a dynamic co-creation ofvalue in a network of actors enabled by technologyfor the purpose of increasing customer valueadded, retention rate, customer lifetime value,customer equity, and firm value.

The Board of Directors approved therecommendations in the Board meeting 29September 2017.

Written by Harald Krogh, Managing Director, Bekk

Value-creation throughtechnology-driven

innovation

HIGHLIGHTS

"Because the purpose ofbusiness is to create acustomer, the businessenterprise has two–and

only two–basicfunctions: marketing

and innovation."Peter Drucker

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On 27 January, Bergen Municipality, representedby Director Nina Mevold, Healthcare Services,and Director Tor Corneliussen, Finance, RealEstate and Innovation, signed the contract tobecome partner of CSI and thereby member in theCSI Consortium. Challenges within health carewill be explored by the CSI research group ingeneral and specifically issues pertaining to homecare and adoption of technology allowing people to

stay longer at home. The fundamental problem isservice productivity by employing technology athome. This is an important element of the ongoingadoption research in theme “Service design andcustomer experience”.

NEW CSI PARTNER BERGEN MUNICIPALITY


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NHH’S DISSEMINATION AWARD 2017


Every 3rd year NHH honors a faculty memberwho has documented outstanding ability todisseminate research and contribute to the publicdebate. The winner of NHH’s ResearchDissemination Award 2017 was CSI director and

NHH-professor Tor Wallin Andreassen. He isawarded the prize for his active disseminationefforts in the fields of innovation, marketing andthe sharing economy.

HONORARY DOCTOR AT NHH CSI Advisory Board member Dr. Roland T. Rust,University of Maryland - Smith School ofBusiness, was, together with four other prominentresearchers (Professors Anna Mauranen, BengtHolmstrøm, Bernt Øksendal, and Sandra E.

Black), officially appointed honorary doctor atNHH 9 June 2017. The ceremony was linked toNHH’s celebration of the 100-year anniversary ofthe Norwegian Parliament’s decision to establishthe institution.

Foto Odd Mehus Foto Odd Mehus

Foto Odd Mehus

CSI ADVISORY BOARD MEETING, NY 2017As part of CSI’s focus on research and staying relevant and interesting for its partners, CSI’smanagement team meets annually the scientific advisory board. This years meeting took placeprior to the annual Frontiers in Service conference at Fordham University, New York campus. Onthis years agenda was udate from last meeting in Norway, issues related to providing partnercompanies with value for the remaining grant period, and CSI’s research focus and valueproposition beyond 2019.

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OUTSTANDING PAPEROF THE YEAR AWARD

INTERNATIONAL CONFERENCES


Dr. Ragnhild Halvorsrud and Dr. AsbjornFolstad, both researchers at Sintef, and Dr. KnutKvale from Telenor, were awarded theOutstanding Paper of the Year Award for thearticle ”Improving service quality throughcustomer journey analysis”. The article waspublished in the Journal of Service Theory andPractice (JSTP) in December 2016. In 2017 thearticle was JSTP’s most read article.The article, which is based on long-term workwith data from CSI partner Telenor, dating backto 2007, was funded by the Project Explore(Telenor Research and SINTEF), ResearchCouncil of Norway's (RNC) project VISUALand SFI Center for Service Innovation (CSI).

Participating at international researchconferences is important to world-leadingresearch centers for three reasons:

1. to identify current research frontiers2. to network with other leading researchers3. promote CSI to a larger internationalcommunity

For 2017 CSI researchers participated atnumerous leading conferences, including amongothers FRONTIERS IN SERVICECONFERENCE 2017, QUIS (Quality in Service),ServDes and EAD Conference - Design for Next.

PHD DEFENSEDr. Mauricy Alvesda Motta Filho

On 22 June 2017, Mauricy A. daMotta Filho gave a trial lecture andlater the same day defended his PhDdissertation «Designing for Brand:Experience Operationalizing aService Dominant Logic Approach toBranding through Service Design» fora PhD degree at The Oslo School ofArchitecture and Design (AHO).

KRAKOW RESEARCH SEMINAR

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SEMINARS


Disseminating research findings is valued by CSI-partners and consequently an important part ofCSI. In 2017, several CSI partners hosted bothopen and closed seminars. As part of her stay inNorway, CSI researcher Dr Linda Hollebeek, gavethree seminars:

1. Sintef: “VR and AR in services”, 2. EVRY: “Design thinking, Strategy &Innovation”, and

3. LiveWork: “How to leverage design inmarketing”.

All seminars were well attended and received. Aspart of positioning NHH in the innovation home-

arena, CSI hosted a breakfast seminar 26 April inBergen. The title was “Innovation City Bergen!”which was well attended and created enthusiasmamong the attendees. The general idea isinnovation in an ecosystem by better coordinatingand informing important actors like academia,local authorities, corporations, smaller companiesincl entrepreneurs. At a higher level it is an effortto create more relevant job opportunities fortalented students and have more companiesestablish part of their value creation functions, e.g.research and design, to the region. CurrentlyBergen is known for several industrial clusters likesubsea, fish farming, Media City, and FinanceInnovation.

Academic research is at the core of the CSIactivities. To create a space and time forcollaboratively developing new ideas and advanceexisting ideas and projects, CSI researchers meetfour times per year. Three one-day seminars,alternating among the research partners and thefourth seminar is placed outside Norway. The2017 annual seminar abroad was located inKrakow 23 - 25 August. On the agenda wasmoving our research forward, including status CSI

work plan 2017, workshops in research groups(adoption group, innovation index group and VR /AR and design group) and developing work plan2018. Two and a half productive seminar days wascomplemented with dinners at the Szara andBoscaiola restaurants in beautiful Krakow. Theseseminars are very fruitful for creative thinking,productive working, and socializing - well worththe time and effort.

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BOOK LAUNCHES

“INNOVATING FOR TRUST”


In the CSI book «Innovating for trust», CSI-researchers respond to the fundamental goal forany firm: through innovations develop, maintain,and enhance customer relationships based ontrust. The book is the result of five years of

research on large service organizations’innovation efforts and provides the syntheses oflearning. The book launch was hosted by the CSIpartner DOGA and about 80 people participated.

“NEW BUSINESS MODELS IN RETAIL - INNOVATING FOR DIGITAL AND SUSTAINABLE FUTURE” (NYE FORRETNINGSMODELLER I HANDELEN)

The CSI book, written by experts at Virke andresearchers at CSI, targets the Norwegian retailindustry and was presented for about 80participants at a book launch, 18 September atVirke. The book describes important trends andinnovations in retail, and how managers can shape

their business models towards a more digital andsustainable future.

These important trends might affect the retailindustry, which has over 370,000 employees and iscrucial for Norwegian economic value creation.


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RECRUITMENT,INTERNATIONALCOOPERATION ANDCOMMUNICATION

The research at CSI is carried out in cooperation with masterstudents, PhD candidates, post docs, and professors. A total of 25master students were connected to CSI in 2017; of which, 18 fromNHH, five from AHO and two from SINTEF. From the startup in2011 to 2017, a total of 17 post docs and PhD students have beenrecruited to CSI. Of the 17, nine had funding from the ResearchCouncil of Norway, seven from NHH, one from AHO and inaddition, four with external funding. In 2017, two postdocs wererecruited to the center, funded by the Research Council ofNorway (NHH). CSI seeks first and foremost professional skillsand competence, but encourages women to apply, both inmanagement positions and in the research group, to achieve agood gender balance.

CSI constantly seeks collaboration with internationalresearchers and strong international research groups or centersto benchmark our research with the frontiers.

Research dissemination is a crucial part of CSI’s activities and isconducted through a variety of events and communicationchannels. The center actively uses three social media platforms;CSI web site (including blogposts), Twitter and Facebook. Ourambitious communication objective is to position CSI asNorway’s leading service-innovation research institution.

"Creating a better future requirescreativity in the present."

Matthew Goldfinger

INTERNATIONALCOOPERATION

NEW POSTDOCS

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NEW POSTDOCSeidali Kurtmollaiev

Dr. Seidali Kurtmollaiev is a Postdoctoral Fellowin the Center for Service Innovation at NHH –Norwegian School of Economics. His researchinterests include strategic management andmarketing with the focus on service innovation.Seidali is a member of the research team workingon the Norwegian Innovation Index (NII).

NEW POSTDOCHallgeir Sjåstad

23 August, Hallgeir Sjåstad defended his thesis fora PhD degree at NHH, and is now working as apostdoctoral fellow in CSI. The central topics inhis ongoing research is future-oriented thinkingand long-term decision-making, self-control andbehavior change. Hallgeir is a member of theresearch team working developing new theoriespertaining to adoption.


Since the start, CSI’s two international researchpartners: Center for Service Research (CTF) atKarlstad University and Copenhagen BusinessSchool have collaborated primarily at theindividual level. 29-30 November CSIs leaderTor W. Andreassen met with CTF’smanagement team, discussing moreinstitutional cooperation and more extensivecooperation through research into workpackages and writing articles.

The need for knowledge changes as industriesneeds and focus change. It makes sense toassess whether you have the right contactsinside and outside your partners. CSI constantlyseeks collaboration with internationalresearchers and strong internationalenvironments. By participating and presentingCSI research at international researchconferences we get to measure our researchwith the frontiers, promote CSI and networkingwith leading international researchers.

Through Sintef, CSI has been involved in the EU/ H2020 project HUMANE 2015 - 2017. Theproject used a CSI study (with former CSIpartner DnB) as a case. The same study was alsopublished in the CSI book "Innovating forTrust".

The Norwegian Innovation Index (NII) hasbeen completed in 2017: the theory and modelhave been developed and tested on a largerdatabase and we see the benefits of suchmeasurements. NII has been presented atinternational research conferences with goodfeedback. Specifically, Karlstad Business Schooland the consulting company RockbridgeAssociates, MD, with links to FordhamUniversity, NY, will use CSI's NII measuringinstrument for corresponding US and Swedishinnovation index. Contracts have beendeveloped and signed, operational from 2018.

VISITING PHDHannu Tikkanen

Hannu Tikkanen, from Hanken School ofEconomics, Finland, will from August and ayear to come, work as a visiting PhD at CSI,NHH. He is studying how consumers makesense of well-being through the use oftechnology-based services, such as wearabledevices and mobile applications.

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MASTER THESISHEALTHCARE GOT SMART

Healthcare industries across the world are in criticalconditions. Their ability to provide fundamentalservices are challenged by urbanization, scarce labourresources and an aging population that is rapidlygrowing. As a response, smart technology is emergingas a disruptive and popular solution. It allowshealthcare services to be delivered more efficiently andless labour intensive than classical healthcare. Thisincreased demand for highly intelligent tools hassparked the creation of smart healthcare; a subsetwithin the more commonly known field of e-health.

The market demand also sparks a strong incentiveamong company managers to optimise their use of

smart technology. Despite this, managers struggle toimplement a fitting business model because of twosignificant hurdles: Firstly, managers have no clearconceptualisation of smart business models that theycan easily adopt and carry out. Secondly, little is knownabout the strengths, challenges and underlyingmotivations of the existing smart business models.

To contribute with some clarity to the fields ofbusiness models and smart healthcare, we devoted themaster thesis to research how smart technology affectsbusiness models in the Norwegian healthcare industry.We identified the emerging smart business models anduncovered their strengths, challenges and underlyingmotivations:

(1) Companies with the Inverted Razor-Blade modeloffer reactive solutions to aid with light conditionsamong private individuals. Customers are attracted byfree/low cost software (e.g. an app that enhancessound and blocks out noise in standard earphones).Later, the customer is exposed to a lock-in effect with a

complementing high-cost hardware (e.g. headsetthat improves the hearing aid).

(2) The One-Time Payment model providesaccessible and effective solutions for variousconditions to private individuals. Companies whooperate with this business model include providersof classical doctor’s appointments delivered throughsmart online video/payment solutions.

(3) TheLong-term Subscriptionmodel offerspractical solutions that simplify daily tasks for bothprivate individuals and professional healthcareworkers. Companies with this business modelsinclude producers of tailored dispensers thatdistribute medicine in the patient’s home.

(4) The final smart business model,PlatformCommunication, offers communication internally orbetween customer groups. Value is delivered strictlythrough software. For example in a two-sidedplatform that connects the city’s demand and supplyof healthcare services.

We discovered that smart technology affects allelements of a business model: How value is created,captured and delivered. Regarding value creation,many companies offer prevention and monitoring ofdiseases - rather than classical treatment.Particularly interesting are solutions that rely on thepatient to create value, because they empower thepatient with knowledge and physical independencefrom healthcare facilities. Value delivery is alsoaffected as technology creates endlesscommunication opportunities (e.g. personalsmartphones). Value capturing demands substantialR&D investments that are compensated for by fewmarginal costs in up-scaling. Finally, customersegments now include groups of private individuals,because they can be reached through personalmobile devices 24-7.

Our study of the healthcare industry reveals that thetop three success criteria for creating andmaintaining a business model founded on smarttechnology concern: 1) Tailoring value propositionsto accessible segments, 2) Delivering value throughsecure software channels and 3) Employing astructure for revenue and costs that ensure long-term profits and reflect plans for upscaling.


Key concepts of technology in healthcare(Solenas et al 2014)

Written by Åse Mari Hidem and Stine Vintervoll,both master students at NHH.

Emerging smart health business models in Norway.

COMMUNICATION & DISSEMINATION ACTIVITIES

16 January Sveinung Jørgensen and Sustainable business development in IT: Lars Jacob Tynes Pedersen Is you business model designed for the future?

20 April Tor W. Andreassen Hansa Borg: Some thoughts on innovation and value creation

24 April Tor W. Andreassen NHH alumni: lecture

25 April Sveinung Jørgensen and Expert conference: RESTART your business modelLars Jacob Tynes Pedersen

26 April Tor W. Andreassen Innovation-city Bergen: An introduction

26 April Lars Jacob Tynes Pedersen Innovation-city Bergen: Toward smart and sustainable business models

26 April Nina Mevold Innovation-city Bergen: Innovation research in Bergen Municipality

9 May Tor W. Andreassen Oslo Concert hall: The future is now: Innovation 3.0: The Next Generation

11 May Tor W. Andreassen NHO Academics: The future work-day for academic employees

14 June Tore Hillestad HR conference for county municipalities in Norway: lecture

18 June Mauricy Arico, Annita Fjuk Design Management Institute conference: Adoption of Service Designand Lavrans Løvlie as Strategic Capability in a Corporate Environment

15 August Tor W. Andreassen Arendalsuken Virke: Robots are taking over jobs and put pressure on wages

4 September Marika Lüders, Book Launch, DOGA: “Innovating for trust”Tor W. Andreassen,Annita Fjuk and Line Lervik-Olsen

13 September Sveinung Jørgensen and Kongsberg Maritime Seminar: Lars Jacob Tynes Pedersen RESTART: Making Sustainability Big Business

18 September Tina Saebi, Sigrid Helland, Book Launch, Virke: «New business models in retailing»Camilla Gramstad, Per Egil Pedersenand Tor W. Andreassen

2 October Tor W. Andreassen NHH forum: Debate with Nordea

18 October Sveinung Jørgensen and NHH Alumni conference «Opptur 2017»: Lars Jacob Tynes Pedersen A RESTART for new sustainable business models

9 November Tor W. Andreassen Kongsberg Technology Conference: Toward the new Norway

15 November Tore Hillestad Bergen Municipality Executive conference: Lecture

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Research dissemination is a crucial part of CSIsactivities and is conducted through a widevariety of events and communication channels.

CSI IN MEDIA:During 2017, Managing Director Tor W. Andreassen has frequently been featuredin national and regional newspapers, includingDagens Næringsliv, Bergens Tidende,Aftenposten etc, NRK TV and TV2, and NRKRadio. He was awarded NHH’s ResearchDissemination Award 2017 for his activedissemination efforts in the fields of innovation,marketing and the sharing economy. He wasalso the second most cited professor at NHH(371 media clips). CSI had a total of 396 mediaclips, which makes us the most cited researchcenters at NHH.

COMMUNICATION STRATEGY:One of CSI’s International Advisory Board’s2017 recommendations was to focus. To achievethis, CSI developed, together with thecommunication company “CorporateCommunication”, a new communicationstrategy for the remaining SFI period. Theprocess had three main goals:

1. Understand and describe the communicationlandscape

2. Develop a strategy to achieve goals3. Develop measures to realize the strategy

The communication goal was identified to be: “Position CSI as Norway's premier researchenvironment on value creation and growth inNorwegian business in general, and the servicesector in particular”.

Four target groups were identified:

1. CSI partners2. Media3. Politicians4. NHH

As part of measurements following up the newcommunication strategy CSI manager willcontinue to distribute his newsletter “Food forthoughts” (15 letters in 2017) and summer andautumn letters to all the CSI partners. CSImanagement will develop and distributequarterly newsletters. Five CSI Newsletterswere distributed in 2017.

ACTIVITY:At NHH, CSI’s management hosted four brownbag seminars for sharing and developing ofresearch ideas and general updating. The centerhas also been involved in seminars at theDepartment of Strategy and Management(SOL) and in conferences at NHH. CSI’sDirector chaired the committee organizing theNHH’s flagship conference - NHH SpringConference - targeted at CEOs. During 2017, wehosted three open partner seminars (Sintef,EVRY and Livework), one breakfast seminar(“Innovation city Bergen”) and two booklaunches ( “Innovating for trust” at DOGA and“New business models in retailing” at Virke). Tostimulate cooperation between the differentresearch partners and CSI topics, CSImanagement hosted three CSI researchseminars: one at Sintef, one at BEKK and one atAHO, The fourth annual research seminar washeld in Krakow, to discuss CSIs work plan, bothstatus 2017 and plans for 2018.

Most notable public speeches / lectures held in 2017

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CSI ON THE WEBTHE VIRTUAL IS REAL


The virtual world of social media is an everydaypart of our life and it might soon become itsreality. Worldwide more than 1 billion peopleare using Facebook daily and publish over 500million tweets. YouTube has over a billion users,which is equivalent to almost a third of allInternet users. CSI, too, has the place in thisnew world, and we actively use three socialmedia platforms: Blog, Twitter and Facebook.

CSI blog (nhh.no/csi) is our oldestcommunication tool and has existed sinceSeptember, 2009. In January 2017, the blog wasincorporated into the new CSI website(nhh.no/csi, launched January 2017).

In 2016, CSI Board of Directors decided toupgrade the CSI website in line with NHH’s newstyle of web pages for research centers. Thisgave the website a modern and clean expression.The new website was launched January 2017.

This website is the CSI’s new façade, and wekeep it updated, regularly publishing newsabout the Center and its partners andhighlighting the results of our activities.

In 2017 32 blog posts were published. The pagegot 11,162 visits the first year and 25,761 pageviews. The site have readers from all over theworld, about 50 % from Norway, 20 % from USA,but also from UK, Sweden, Germany and others.

Apart from the CSI web site in general, there is

an increasing interest in the web-pages for theNorwegian Innovation Index. This page got2,254 visits and 3,237 views in 2017. The CSI Twitter account (@CSI_NHH) wasreopened in November 2013, and currently hasabout 536 followers. The tweets inform aboutblog updates, activities of CSI researchers andpartners, and exciting news from the world ofinnovation. In addition, all partner companiesand many CSI researchers, including Tor W.Andreassen, Helge Thorbjørnsen, Siv Skard,Lars Jacob Tynes Pedersen and PerKristensson, have their own twitter accounts.Thus, it is an important tool for an intensive,real-time knowledge exchange.

The CSI’s Facebook account was launched inMay, 2013. It has been used for posting news andphotos from various CSI events, such asmeetings, seminars and blogs. It currently has377 followers, and it is an additional tool forinformal communication with a largeraudience.

Physically, CSI is an organization with fuzzyboundaries, diffused over many institutions inseveral cities. Virtually, however, it is aconsolidation of professionals, sharing valuableknowledge in pursuit of common goals. For suchan organization, representation andcommunication via the Web, combined withother communication and disseminationactivities, constitutes its face and voice.

CSI’s management team is indebted toAldin Hasanovic (NHH’s CommunicationDepartment) for all his help, servicemindedness, and contributions whendeveloping CSI’s and the NorwegianInnovation Index’s new web pages.

ATTACHMENT TO THE REPORT

NAME INSTITUTION MAIN RESEARCH AREA

Tina Saebi NHH Business Model Innovation

Lars Jacob Tynes Pedersen NHH Business Model Innovation

Sveinung Jørgensen NHH Business Model Innovation

Tore Hillestad NHH Managing and organizing for service innovation and transformation

Alexander Jakubanecs SNF Managing and organizing for service innovation and transformation / Design for Service

Alexander Sandvik NHH Managing and organizing for service innovation and transformation

Annita Fjuk Telenor/NHH Design for Service

Helge Thorbjørnsen NHH / SNF Design for Service

Herbjørn Nysveen NHH Design for Service

Per Egil Pedersen NHH Design for Service

Per Kristensson KAU / NHH Design for Service

Linda Hollebeek NHH Design for Service

Siv Skard NHH Design for Service

Birgit Solem HBV Design for Service

Simon Clatworthy AHO Design for Service

Amela Karahasanovic Sintef Design for Service

Ragnhild Halvorsrud Sintef Design for Service

Asbjørn Følstad Sintef Design for Service

Tor W. Andreassen NHH Design for Service / Service Innovation Economics

Line Lervik-Olsen NHH Design for Service / Service Innovation Economics

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KEY RESEARCHERS POSTDOCTORAL RESEARCHERS

NAME AFFILIATION FUNDING GENDER NATIONALITY PERIOD

Konstantinos Boletsis Sintef NRC M Greece 12.09.16 - 11.09.18

Seidali Kurtmollaiev NHH NRC M Ukraine 01.04.17 - 31.03.21

Hallgeir Sjåstad NHH NRC M Norway 24.08.17 - 23.08.19

PHD STUDENTS In the center


Dimitra Chasanidou Sintef NRC F Greece 01.09.13 - 31.08.17

Mauricy A. da Motta Filho AHO NRC M Brazil 01.09.11 - 31.08.17

Ted Matthews AHO AHO M England 01.09.11 - 24.04.18

Claire Dennington AHO RNC F Norway 01.09.15 - 31.08.18

Abdallah Issahaka Wimpini NHH NHH M Ghana 01.08.15 - 31.07.19

Katrine Berg Nødtvedt NHH NHH F Norway 15.08.16 - 14.08.20

PhD students in CSI with funding from other sources


Kristin Ringvold NHH NRC / CapGemini F Norway 01.08.14 - 01.09.17

Erlend Aas Gulbrandsen HIL HIL M Norway 01.04.15 - 30.03.18

Hege-Mathea Haugen NHH NRC / Telenor F Norway 01.10.15 - 30.09.19

Magne Angelshaug NHH NRC / Sbanken M Norway 15.10.16 - 15.10.20

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NAME TITLE OF THESIS

Oda Sortland User generated insurance. Using artificial intelligence to empower users and boost innovations

Benjamin Drivdal Transparency and the sustainability reporting practice of Norwegian Companies

Jørn Erik Skjeldrum Toppe Motiver for deling: er forbrukere villig til å dele på sine eiendeler?

Inga Øystese Hovde Motiver for deling: er forbrukere villig til å dele på sine eiendeler?

Runar Bleie Bertheussen Bildelerne i Norge: en studie om norske bildelere: hvem er de og hva driver dem?

Mari Arnestad Bildelerne i Norge: en studie om norske bildelere: hvem er de og hva driver dem?

Thomas Tjøstheim Breaking bank monopolies with bank hubs

Åse Mari Hidem Healthcare got smart: the effect of smart technology on business models in the Norwegian health care industry: a qualitative exploration

Stine Vintervoll Healthcare got smart: the effect of smart technology on business models in the Norwegian health care industry: a qualitative exploration

Benedicte Næss Liisberg What are the effects of digitalization on service-based business models? : an exploratory study into the concept of digitalization, and its impacts on business models

Helene Lien Heitman What are the effects of digitalization on service-based business models? : an exploratory study into the concept of digitalization, and its impacts on business models

Francesca Barberio Internationalization of Business Models in the Sharing Economy

Hussnain Bashir Internationalization of Business Models in the Sharing Economy

Francesca Accerbi Sustainability in the food industry: A VR experiment on Norwegian consumers

Torkel Aanestad Sustainability in the food industry: A VR experiment on Norwegian consumers

Paul Schulte-Brüggemann Service Innovation, Customer-Perception & Loyalty: An Experiment

Yvonne Streit Service Innovation, Customer-Perception & Loyalty: An Experiment

Espen Bye Tilgangsbasert konsum: klesutleie i Norge: hvorfor leier noen klær og hvordan endrer klesutleie brukernes forbruksmønster?

Martine Hatlebrekke Tilgangsbasert konsum: klesutleie i Norge: hvorfor leier noen klær og hvordan endrer klesutleie brukernes forbruksmønster?

Stian Kongsvik Text Input in Virtual Reality Environments

Jarl Erik Cedergren Locomotion in Virtual Reality Environments

Simon Guzman Supporting the journey of recovery: Designing interventions to support the lived experience of spinal cord injury patients at Sunnaas hospital

Yafei Ma Improvements for the lives of individuals with autism and the people around them

Sofie A. Thomassen Wandering mind - Helping teenagers manage stress and anxiety through interactive mindfulness-meditation

Juan Alberto Soriano Valtierra Wandering mind - Helping teenagers manage stress and anxiety through interactive mindfulness-meditation

MASTER STUDENTS


PUBLICATIONS JOURNAL PUBLICATIONS

Andreassen, T. W. , Van Oest, R. and Lervik-Olsen, L. (2017):Customer Inconvenience and Price Compensation: A Multi-Period Approach to Labor-Automation Trade-offs inServicesJournal of Service Research, https://doi.org/10.1177/1094670517738370, 9 November 2017

Boletsis, C. (2017): The New Era of Virtual Reality Locomotion: A SystematicLiterature Review of Techniques and a Proposed TypologyMultimodal Technologies and Interaction, Volume 1(4), pp. 1-17,MDPI

Bowden, J., Conduit, J., Hollebeek, L., Lumoa-Aho, V. andSolem, B. (2017):Engagement, valence duality and spillover effects in onlinebrand communitiesJournal of Service Theory and Practice, Vol 27, issue 4, ISSN:2055-6225, pp 1-40

Brandtzaeg, P. B., & Følstad, A. (2017):Trust and distrust in online fact-checking services Communications of the ACM, 60(9), 65-71

Foss, N., Saebi T. (2017):Fifteen Years of Research on Business Model Innovation.How far have we come, and where should we go?Journal of Management, Vol 43, Issue 1. pp 200-227

Foss, N., Saebi, T. (2017):Business Models and Business Model Innovation: BetweenWicked and Paradigmatic ProblemsLong range planning,vol 51, Iss 1, pp 9-21,https://doi.org/10.1016/j.lrp.2017.07.006

Følstad, A. (2017):Users’ design feedback in usability evaluation: a literaturereviewHuman-centric Computing and Information Sciences, 7(1), 19

Følstad, A., & Brandtzæg, P. B. (2017):Chatbots and the new world of HCIinteractions, 24(4), 38-42

Følstad, A., Engen, V., Haugstveit, I. M., & Pickering, B. (2017):Automation in Human-Machine Networks: How IncreasingMachine Agency Affects Human AgencyarXiv preprint arXiv:1702.07480

Hollebeek, L., Juric B., Tang, W. (2017):Virtual Brand Community Engagement Practices: A RefinedTypology & ModelJournal of Services Marketing, Vol 31, Issue 3, pp 204 - 217-doi: 10.1108/JSM-01-2016-0006

Kurtmollaiev, S. (2017): Dynamic Capabilities and Where to Find ThemJournal of Management Inquiry,https://doi.org/10.1177/1056492617730126

Lariviere, B., Bowen, D., Andreassen, T. W., Kunz, W., Sirianni,N. J., Voss, C., Vünderlich, N.V., Keyser, A.D. (2017):Service Encounter 2.0": An investigation into the roles oftechnology, employees and customersJournal of Business Research, vol 79, pp 238-246

Lervik-Olsen, L., Andreassen, T. W. , Streukens, S.(2017):What Drives the Intention to Complain?Journal of Service Theory and Practice Vol. 26(4), pp. 406-429Lervik-Olsen, L., Kurtmollaiev, S. and Andreassen, T.W (2017):Innovasjonsevne i norske bedrifterMagma (7) s 24-32

Matthews, T. (2017):Sacred Service: The Use of ‘Sacred Theory’in ServiceDesignJournal of Design, Business & Society, 3(1), 67-97

Michael, A. and Boletsis, C. (2017):A Tourism Model Shift for Historic Cities: Valorising theMusical Heritage through ICTe-Review of Tourism Research, Volume 8, pp 6 ResearchNotes, Texas A&M University Press


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Perlacia, A.S., Duml, V., & Saebi, T., (2017):The new business models of the sharing economy: examplesfrom fashion retailingBeta Scandinavian Journal of Business Research, 31(1), 6-24

Saebi, T., Lien L., Foss, N.J.(2017):What drives Business Model AdaptionLong Range Planning, Vol 50, Issue 5, pp 567-581

Skard, S. and Thorbjørnsen H. (2017):Closed-ended and open-ended fit articulation:Communication strategies for incongruent sponsorshipsEuropean Journal of Marketing, Vol. 51(7), p 1414-1439

Varlid, V., Moen, K. and Lervik-Olsen, L (2017):Bruk kompetansen din når du tar samfunnsansvar!Magma 07/17 s 31-42

Vishvanathan, V., Hollebeek L., Malthouse, E., Maslowska E.,Kim, S. J., Xie, W. (2017):The Dynamics of Consumer Engagement with MobileTechnologiesService Science, 9 (1), pp 36-49, ISSN 2164-3962/EISSN 2164-3970

BOOKS

Filho, M. (2017): Designing for Brand Experience: Operationalizing aService Dominant Logic Approach to Branding throughService DesignPh.D. Thesis, AHO

Gramstad, C., Helland, S., Saebi, T. (2017) (eds.):Nye forretningsmodeller i handelen : innovasjon for enbærekraftig fremtidUniversitetsforlaget 2017 ISBN 978-82-15-02847-7

Jørgensen, S. og Pedersen, L. J. T. (2017):Restart- 7 veier til bærekraftig business.Cappelen Damm, ISBN/EAN: 9788202459192

Lüders, M., Andreassen, T. W., Clatworthy S. and Hillestad, T.(2017) (eds.):Innovation for Trust.Edward Elgar publishing, ISBN 978-1-78536-9487-6

PUBLICATIONS IN ANTHOLOGIES

Adam, S., Saebi, T., Bücker, C., Desguin, S., Vaage, N. (2017):Å bli en aktør i den sirkulære økonomien: Hvordan designeen sirkulær forretningsmodellI: Nye forretningsmodeller i handelen : innovasjon for enbærekraftig fremtid Universitetsforlaget 2017 ISBN 978-82-15-02847-7. s. 67-81

Andreassen, T. W., Clatworthy, S., Lüders, M. and Hillestad, T.(Eds.):Innovating for Trust. In: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6 pp 1-14

Andreassen, T., Lervik-Olsen, L. and Kurtmollaiev, S. (2017):Innovation economicsIn: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 383-399

Andreassen, T. W. (2017):Varehandelens fremtidIn: Nye forretningsmodeller i handelen: Innovasjon for enbærekraftig fremtid. Universitetsforlaget, ISBN 978-82-15-02847-7 pp 145-158

Blomquist, J. (2017):Prototyping for trustIn: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 217-229

Brochs-Haukedal, W. (2017):Transformational leadership in customer-centricorganizations and the need for strategic foresightIn: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 310-321

Calder, B., Hollebeek, L., and Malthouse, E. (2017):Creating Stronger Brands through Customer Experienceand EngagementIn Palmatier, R. V, , Harmeling, C. and Kumar V. (Eds.),Customer Engagement Marketing pp 221 - 242

Chasanidou, D. and Karahasanovic, A. (2017):Co-creation for innovation: why do customers get involved?In: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 275-292

Clatworthy, S. (2017):Service design thinkingIn: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 167-182

Filho, M. (2017):Building brand trust through customer experiencesIn: Innovating for trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 201-216

Følstad, A. (2017):From participatory design to co-creation.In: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 247-260

Gloppen, J., A. Fjuk and S. Clatworthy (2017).The role of service design leadership in creating addedcustomer value In: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 230-244

Gramstad, C.,Helland, S., Saebi, T. (2017)Rethink. Restart. RetailI: Nye forretningsmodeller i handelen : innovasjon for enbærekraftig fremtid, Universitetsforlaget 2017 ISBN 978-82-15-02847-7. s. 17-34

Grönquist, D. N. (2017):Trust in the future: future thinking as a capability for serviceinnovationIn: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 65-77


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Gulbrandsen, E. A.(2017):Grønne kanarifugler: Om viktigheten av saksinnselgere forbærekraft og hvordan de kan lykkesIn: Nye forretningsmodeller i handelen: Innovasjon for enbærekraftig fremti, Universitetsforlaget, ISBN 978-82-15-02847-7 pp 115-130

Halvorsrud, R. and Kvale K. (2017):Strengthening customer relationships through CustomerJourney AnalysisIn: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 183-200

Hillestad, T. (2017):Developing innovative organizational culture.In: Innovating for Trust. Edward Elgar Publishing 2017 ISBN978-1785369476. s. 297-309

Jørgensen, S. and Pedersen, L.J.T. (2017):Bærekraftige forretningsmodeller i varehandelen: EnRESTART av bransjen?In: Nye forretningsmodeller i handelen: Innovasjon for enbærekraftig fremtid, Universitetsforlaget, ISBN 978-82-15-02847-7 pp 49-66

Jørgensen, S. and Pedersen, L.J.T. (2017):Designing Sustainable Business ModelsIn: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 145-162

Kobbeltvedt, T. (2017):Leadership, trust and UX design: a regulatory focusperspectiveIn: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 322-336

Kristensson, P. , Nysveen, H. and Thorbjørnsen, H. (2017):Why customers do and do not switchIn: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 353-371

Lüders, M. (2017):Crowdsourcing for innovation: companies as trusteesIn: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 261-274

Lüders, M., Andreassen, T. W., Clatworthy, S., Hillestad, T.(2017):Transforming towards innovative culture by using customer-centric scenarios and service concepts.I: Innovating for Trust. Edward Elgar Publishing 2017 ISBN978-1785369476. s. 78-93

Nysveen, H. and Kristensson, P. (2017):Overcoming Resistance to Adopt Innovations: SofteningInnovation Resistance through Trusting BeliefsIn: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 339-352

Nysveen, H. and Skard, S. E. R. (2017):Trust, Risk and Self-Service Technologies: Suggestions forFuture ResearchIn: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 31- 47

Pedersen, P. E. (2017):Forretningsmodellinnovasjon i varehandelen - verdifangst,verdiskapning og bærekraftIn: Nye forretningsmodeller i handelen: Innovasjon for enbærekraftig fremtid. Universitetsforlaget, ISBN 978-82-15-02847-7 pp 131-144

Pedersen, P. E., Solem, B. A., & Bentsen, K. (2017):Business model innovation in the retail industry: a servicesystem perspectiveIn: Innovating for Trust. Edward Elgar Publishing 2017 ISBN978-1785369476. s. 131-144

Perlacia, A.S., Duml, V., & Saebi, T., (2017):Samarbeidende forbruk: Fra fast fashion til motedeling.I: Nye forretningsmodeller i handelen : innovasjon for enbærekraftig fremtid. Universitetsforlaget 2017 ISBN 978-82-15-02847-7. s. 83-94

Ringvold, K. (2017):Bærekraftige forretningsmodeller og utfordringer forledereIn: Nye forretningsmodeller i handelen: Innovasjon for enbærekraftig fremtid. Universitetsforlaget, ISBN 978-82-15-02847-7 pp 105-114

Saebi, T., Nysveen, H., Hossain, M.T., Fjuk, A. (2017):Designing experience-centric business models: what dothey look like and how do they influence trust?.I: Innovating for Trust. Edward Elgar Publishing 2017 ISBN978-1785369476. s. 115-130

Skard, S. (2017):Trust and Service InnovationIn: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 17-30

Skard, S. and Nysveen H. (2017):Digital risk and customers' acceptance of self-serviceinnovations: the role of online benefits and corporate trustIn: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 48-60

Solem, B. A. & Hollebeek, L. D. (2017).The Consumer Engagement / Return on Social MediaEngagement Interface: Development of a ConceptualModelIn: Contemporary Issues in Social Media Marketing.Routledge UK, chapter 10, 9781138679177

Solem, B. A., Bentsen, K., & Pedersen, P. E. (2017):Radikal forretningsmodellinnovasjon i varehandelen. I: Nyeforretningsmodeller i handelen : innovasjon for enbærekraftig fremtid.Universitetsforlaget 2017 ISBN 978-82-15-02847-7, s. 35-48

Sørfonn, S., Rosenqvist, A., Saebi, T. (2017):Steg-for-steg-implementering av bærekraftigeforretningsmodeller.I: Nye forretningsmodeller i handelen : innovasjon for enbærekraftig fremtid. Universitetsforlaget 2017 ISBN 978-82-15-02847-7. s. 95-104

Tepfers, C. A. C (2017):Creating actionable future narrativesIn: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 94-115

Thorbjørnsen, H. (2017):Launching innovationsIn: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 372-382

Yttri, B., Fjuk, A., Grönquist, D.N. and Hillestad, T. (2017):Transforming towards innovative culture by using customer-centric scenarios and service conceptsIn: Innovating for Trust, Edward Elgar Publishing, ISBN 978-1-78536-9487-6, pp 78-93


4948

Andreassen, T. (2017):Service Innovation: Lower transaction costs or valuableservice concepts,Abstract accepted for Naples Forum on Service, Sorrento,June 6-9

Boletsis, C. and McCallum, S. (2017):The Smartkuber Case Study: Lessons Learned from theDevelopment of an Augmented Reality Serious Game forCognitive ScreeningProceedings of International Conference on AugmentedReality, Virtual Reality and Computer Graphics, Lecture Notesin Computer Science, Volume 10324, pp. 457-472, SpringerPublishing

Boletsis, C., Cedergren, J. E. and Kongsvik, S. (2017):HCI RESEARCH IN VIRTUAL REALITY: A DISCUSSION OFPROBLEM-SOLVINGto appear, 11th International Conference on Interfaces andHuman Computer Interaction, 2017

Boletsis, C., Karahasanovic, A. and Fjuk, A. (2017):Virtual Bodystorming: Utilizing Virtual Reality forPrototyping in Service Designto appear40th International Conference on Augmented Reality, VirtualReality and Computer Graphics, 2017

Brandtzaeg, P. B., & Følstad, A. (2017).Why People Use ChatbotsIn International Conference on Internet Science (pp. 377-392). Springer, Cham

Chandler, J., Ward, P., Hollebeek, L., and Pels, J. (2017):Co-Innovation in Service Design: The Role of ResourceAppropriationAbstract accepted for Naples Forum on Service, Sorrento,June 6-9

Chen, T., Drennan, J., Andrews, L., Hollebeek, L. (2017):User Experience Sharing: Conceptualizing and examining S-D Logic informed customer value co-creation effortsFrontiers in Service 2017, June 23-26, New York

Filho, M., Clatworthy, S. (2017):Designing for Brand Experience: How service designoperationalizes a Service Dominant Logic approach tobrandingThe 15th International Research Symposium on ServiceExcellence in Management

Følstad, A., Chasanidou, D., Haugstveit, I. M., & Halvorsrud, R.(2017):Involving Users in the Design of Sharing Economy ServicesIn International Conference on Internet Science (pp. 222-230). Springer, Cham

Følstad, A., Engen, V., Haugstveit, I. M., & Pickering, B. (2017):Automation in Human-Machine Networks: How IncreasingMachine Agency Affects Human AgencyICMMI 2017: Man - Machine Interactions, 5, pp 72 - 81

Dennington, C. (2017):Service Design as a Cultural Intermediary – TranslatingCultural Phenomena into Services In 12th EAD Conference - Design for Next, SapienzaUniversity of Rome: 12.04.2017–14.04.2017. Available:http://www.designfornext.org

Hollebeek, Juric and Tang (2017):Virtual Brand Community Engagement Practices: Typology& Conceptual ModelFrontiers in Service 2017, June 23-26, New YorkJakubanecs, A., Lervik-Olsen, L., Andreassen T. W., and

Thorbjørnsen, T. (2017):Effects of Return on Time (RoT) on Adoption of Services:The Moderating Role of Need for CognitionFrontiers in Service Conference 2017, June 23 - 26, New York

Jakubanecs, A., Lervik-Olsen, L., Andreassen, T. W., andThorbjørnsen, H. (2017):Effects of Return on Time (RoT) on Adoption of Services:The Moderating Role of Need for CognitionQUIS 15 The 15th International Research Symposium onService Excellence in Management, Porto, Portugal

Karahasanovic, A., Holm K. T., and Nejad, A. Design for trust – online grocery shoppingIHCI 2017, Lisbon, Portugal, 21 – 23 July 2017. IADIS Press2017 ISBN 978-989-8533-64-7 s. 239-243

Kurtmollaiev, S., Lervik-Olsen, L., and Andreassen, T.W. (2017):Measuring service innovation: A customer-centric approachFrontiers in Service Conference 2017, June 23-26, New York

Nødtvedt, K. (2017):Contamination in the sharing economy: an experimentaldesignPaper presented at the FIBE Conference, January, Bergen,Norway

Nødtvedt, K., & Thorbjørnsen, H. (2017):Contamination in the sharing economy: Always icky, orsometimes chic?Poster presented at the Frontiers in Service Conference, 23-26 June, New York, USA

Nødtvedt, K., & Thorbjørnsen, H. (2017):Positive effects of peer providers?Paper presented at Surrey Think Tank: CollaborativeEconomy, September, Surrey, UK

Skard, S., Thorbjørnsen, H., Knudsen, E., and Sjåstad, H.(2017):Virtual Reality (VR) effects in the travel industryFrontiers in Service Conference, June 23-26 New York

Solem, B A., & Pedersen P. E. (2017):The dynamics of retail agglomeration attractiveness. Effectof agglomeration characteristics, shopping motives andshopping journey complexityConsumer response to the evolving retailing landscape;Philadelphia, 2017-06-22 - 2017-06-23

CONFERENCE PROCEEDINGS

STATEMENT OF ACCOUNTS

FUNDING

The Research Council of Norway 9 961 000

NHH 5 631 756

Research Partners (Sintef, AHO, SNF) 2 625 993

Service provider partners (Telenor, NorgesGruppen, Posten, EVRY, Bergen Municipality) 3 935 094

KIBS partners (InFuture, BEKK, Livework) 630 018

Specialized competence partners (DOGA, Induct) 345 400

Bridging Partners (Abelia, Virke) 244 600

TOTAL 23 373 861

COSTS

NHH 11 517 639

Research Partners (Sintef, AHO, SNF) 6 905 993

Service provider partners (Telenor, NorgesGruppen, Posten, EVRY, Bergen Municipality) 3 730 211

KIBS partners (InFuture, BEKK, Livework) 630 018

Specialized competence partners (DOGA, Induct) 345 400

Bridging Partners (Abelia, Virke) 244 600

TOTAL 23 373 861

"The Purpose of aBusiness is to createand keep a customer."

Peter Drucker

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