INNOVATION IN SERVICES

AND THE KNOWLEDGE

CREATION PROCESS: A

PROPOSAL FOR A SERVICE

DESIGN METHOD.

ADVISOR: GREGÓRIO VARVAKIS, PHD

CO-ADVISOR: TARCÍSIO VANZIN, DR

Student: Maurício Manhães

Summary2

Introduction

Context

Problematic

Question

Objectives

Conceptual Basis

Materials and Methods

Application

Result

Analisys

Conclusion

Ideas for a PhD

Introduction3

Introduction4

The competitive scenario indicates a clear trend for innovation in services.

The innovation process requires design.

This context may be best treated from the service-dominant logic perspective

Service is the application of knowledge for the benefit of an entity.

This perspective puts the knowledge management as a basis for the design of knowledge-intensive systemic solutions.

For innovation in services

Global Scenario5

Context6

While the ability to develop new services will become even more important (STEVENS, DIMITRIADIS, 2005), in most cases, the rationale adopted for the development of new products is still sustained by a narrative focused on tangible products (MINOR ET AL. , 2002; DROEGE ET AL., 2009; VON KOSKULL, 2009; ORDANINI; MAGLIO, 2009; ALAM, 2006; PALOHEIMO ET AL., 2004; ROSENTHAL, CAPP, 2006; BECKMAN, BARRY, 2007).

Problematic

Despite the growing economic importance of service delivery in recent decades, scientific advances have been timid in relation to the processes of innovation inherent in the development of new services (DREJ, 2004; ADAMS ET AL., 2006).

Several scientific studies report that there are no specific methods for the development of new services (NSD: New Service Development), pointing out that "new services just happen" (MINOR, TATIKONDA, SAMPSON, 2002; DREJ, 2004; ADAMS ET AL., 2006 ; DROEGE, HILDEBRAND, FORCE, 2009)

7

Problematic8

Although there is no scientific methods of NSD it is recognized that in that context occurs the process of knowledge creation (NONAKA, TOYAMA, 2003) It is not known how this process "happens."

Just as it is required a new service to present explicitly its conceptual structures and practices in the form ofscripts (COOK ET AL., 2002) and blueprintings (BITNER ET AL., 2008), the process of innovation in services should have the same benefits that standardization and consequent decrease in the cognitive load involved may bring. Understanding is knowledge that allows prediction

(VAISHNAVI; KUECHLER, 2004).

Research Question

How can the practices at the initial phase of the

new service development process (NSD) be

structured, based on concepts from the knowledge

creation process?

9

General Objective

Propose a method for the collection of qualitative

information to be applied at the beginning of the

new service development process.

10

Specific Objectives

Identify and articulate an interdisciplinary

literature that contemplates the constructs:

innovation, service, knowledge and design;

Identify the practices of new services development

and establish relations with the knowledge

creation process;

Test the application of the method proposed in an

initial phase of a new services development

process;

11

Conceptual Basis12

Literature Review13

Design Knowledge

ServiceInnovation

Service

Design

Knowledge

Creation

Process

Initial phase14

The review of the literature began with a “mapping

of the territory” using informal and non-structured

methods

Through this survey, a universe was identified of

728 documents including articles, books,

dissertations and theses

Only documents that contained the terms

“innovation” and “service” were reviewed

484 documents

Literature Review15

0 100 200 300 400 500 600

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5

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1 Innovation 544

2 KISS + KISA + PSS 484

3 Competitive Advantage 244

4 Creativity 221

5 Knowledge Management 158

6 Knowledge Creating 142

7 Service Innovation 141

8 Multimodal Imagery + Embodiment 135

9 SSEM 125

10 Value Creation 124

11 Service Design 105

12 Service Blueprint 86

13 Service Economy 82

14 Ethnography + Anthropology 80

15 Tacitness & Stickyness 74

16 Design Research 73

17 Co-Creation 73

18 New Service Development 69

19 Co-Production 65

20 Service Dominant Logic 45

21 Value Network 39

22 Design Theory 38

23 Customer + User centered 38

24 Design Thinking 31

25 Experience Economy 31

26 Concurrent Engineering 23

27 Nonaka + Toyama + Konno 18

28 Unified Services Theory 15

29 Vargo + Nonaka 13

30 Market Design 4

31 Vargo + Buchanan 4

32 Functional Sales 2

Gap

As a co-evolution between problem and solution spaces(BOLAND; COLLOPY, 2004; DORST, 2006; DORST; CROSS, 2001;

HATCHUEL; WEIL, 2008; STEMPFLE; BADKE-SCHAUB, 2002)

Design

Solution

Problem

Solution

Problem

Solution

ProblemTime

16

Design Conhecimento

ServiçoInovação

Design de Design

Design

* (STEMPFLE; BADKE-SCHAUB, 2002)

Start

End

17

Design Conhecimento

ServiçoInovação

Design de Design

DYNAMICS OF DESIGN From the design process

known as "double diamond":

Divergence (Generate *) Convergence (Explore *) Analysis (Compare *) Synthesis (Select *)

In a sense, it is in an antithetical environment where knowledge is created (NONAKA, TOYAMA, 2003)

The Knowledge Creation Process

Moderador:

Knowledge Assets

Ba: Context-Knowledge

Place

SECI: Knowledge

Conversion Process

18

Design Conhecimento

ServiçoInovação

Design de Design

(NONAKA; TOYAMA, KONNO, 2000)

SECI: The Spiral19

Design Conhecimento

ServiçoInovação

Design de Design

(NONAKA; TAKEUCHI, 1997)

Service

Application of competences (knowledge and

skills) from one entity to the benefit of itself

or another (VARGO, LUSCH, 2007).

Benefit: For the customer, [...] means that after being assisted through

a process of self-care (preparing food or making a

withdrawal from a cash-mail) or a total service process

(eating in a restaurant or taking out cash in cash from a

bank) he is or feels better than before (GRÖNROOS,

2008).

20

Design Conhecimento

ServiçoInovação

Design de Design

Innovation21

Innovation, understood as a social phenomenon that creates a qualitative change in products and processes, achieved by the creation of new knowledge and new value as perceived by a social network(VARGAS ET AL., 2008; FAGERBERG, 2003; BALDWIN ET AL., 2006; POPADIUK; CHOO, 2006; SPOHR; KWAN, 2008),occurs from a dynamic similar to the processes of knowledge creation(NONAKA, VON KROGH, 2009)and design(EDMAN, KW, 2009).

“design and innovation are both knowledge creation processes” (MANHAES, 2010)

Some researchers say the design is of decisive importance for innovation (BALDWIN, CLARK, 2005, p. 3):

"Behind every innovation is a new design."

Design Conhecimento

ServiçoInovação

Design de Design

Service Design22

In general terms, Mager (2008, p. 355) defines this

discipline as follows:

Service Design addresses the functionality and form of

services from the perspective of clients. It aims to ensure

that service interfaces are useful, usable, and desirable

from the client’s point of view and effective, efficient, and

distinctive from the supplier’s point of view.

Design Conhecimento

ServiçoInovação

Design de

Design

Or... Service Design23

The main objective of Service Design is to create an

empathic connection with future users of a service.

In this way, designers can speculate on future

concepts of service based on the perspective that

they acquire from the users studied (SEGELSTRÖM,

RAIJMAKERS, HOLMLID, 2009).

Design Conhecimento

ServiçoInovação

Design de

Design

Group dynamics performed with the use of

multimodal images to generate new knowledge and

new value propositions for services. (MANHAES,

2010)

The multimodal redundancy of signs is a form of

guaranteeing communication in situations in which

channels suffer interference. This interference can be

physical or cognitive (OVIATT ET AL., 2004; PARTAN,

MARLER, 2005).

24

Routines of Design ServiceDesign Conhecimento

ServiçoInovação

Design de

Design

Mulitmodal Imagery25

Aplication

Materials and Methods26

Stages of the Research27

Stages of the research Specific Objetctives

Literature Review

Using the terms “innovation”, “service”,

“design” and “knowledge”

Combined through 32 filters.

Identify and articulate the

interdisciplinary literature that

contemplates the constructs:

innovation, service, knowledge and

design;

Preparation of the proposed method

Through the identification and juxtaposition

of cognitive knowledge from the fields of

design and management

Identify the practices of new

services development and establish

relations with the knowledge

creation process;

Application

BU/UFSC Reference Services

Validate that the practice obtained

corresponds to the theory articulated

Test the application of the method

proposed in an initial phase of a

new services development process;

Preparation of the method28

Stages

Phases

Double Diamant SECI

Phases

Pre- 1.1 Discover Socialization 1.1

Field 1.2 1.2

1.3 1.3

Field 2.1.1 2.1.1

2.1.2 Externalization 2.1.2

2.1.3 2.1.3

2.2.1 Define Combinação 2.2.1

2.2.2 2.2.2

2.3.1 2.3.1

2.3.2 2.3.2

2.4.1 Internalization 2.4.1

2.4.2 2.4.2

Post- 3.1 Develop Socialization 3.1

Field 3.2 ... 3.2

4.1 Deliver 4.1

The proposed method has 03 stages and 15 phases

Pre-Field Stage:

Discover and Socialization29

Phases:

Defining the Value Proposal (1.1),

Defining the Value Network (1.2) and

Inviting Participants (1.3).

Pre-Field Stages:

Discover and Socialization30

Through meetings with the Advisor, the University

Library was chosen for the application;

Later, with the Director of the University

Library/UFSC, we defined

value proposition (1.1) to focus on the

implementation of the library reference service;

the definition of value network (1.2);

Depending on the personals agendas, was set the

date and the invitation to participants (1.3)

Application

Results:

Pre-Field Definitions

Participants

1. Library employee;2. Professor UFSC;3 Library employee;4. Library employee;5. Library employee;6. Library employee;7. Library employee;8. Doctoral student;9. Graduate student;10. Master Student 01;11. Master Student 02;12. Master Student 03;13. Observer (PhD Candidate).

Date: 18/05/2010

Resources required

1. Brown paper (A3 or A2) and / or cardboard;2. A43 Tapes;4. Permanent markers and pens of different colors;5. Four separate tables;6. Multimedia projector;7. Physical space to perform dynamic activities.8. Snack / coffee for about 10 people

31

Field Stage:

a) Discover and Socialization32

Phase:

Seeing that the large group has a

common understanding (2.1.1);

Field Stage:

a) Discover and Socialization33

Phase:

Seeing that the large group has a

common understanding (2.1.1);

Application

Results:

Initial Map34

Field Stage:

b) Discover and Externalization35

Phases:

Generating Positive Alternatives

(2.1.2) and

Negative Alternatives (2.1.3) by the

Sub-Groups;

Field Stage:

b) Discover and Externalization36

Phases:

Generating Positive Alternatives (2.1.2) and

Negative Alternatives (2.1.3) by the Sub-Groups;

Application

Results:

Sub-Groups Maps37

Field Stage:

c) Define and Combination38

Phases:

Aligning the Understanding of the

Large Group (2.2.1) and

Interval/Snack(2.2.2);

Field Stage:

c) Define and Combination39

Phases:

Aligning the Understanding of the

Large Group (2.2.1) and

Interval/Snack(2.2.2);

Application

40

Phases:

Evaluating the Alternatives – Sub-

Groups (2.3.1);

Field Stage:

c) Define and Combination

41

Phases:

Evaluating the Alternatives – Sub-

Groups (2.3.1);

Field Stage:

c) Define and CombinationApplication

Result:

Analisys Strong and Weak Points42

STRONG POINTS

USER TRAINING

ARCHIVES -> SOURCES OF

ELECTRONIC/PRINTED INFO.

PHYSICAL SPACE

REMOTE ACCESS

VARIETY OF SERVICES

LOCATION

HOURS

WEAK POINTS

SIGNAGE

NO INFO./RECEPTION DESK

LAYOUT -> LOAN DESK

NOT OPEN SUNDAYS & UNTIL 11pm during

the week.

LACK OF PERSONNEL

DECENTRALIZED

- Strong Points:

CLEAR AND SPECIFIC.

Service desk with photo info. and

process/service/Product.

Trained employees,

Polyvalent employees.

User education.

Improved entrance and exit flow of users (turn-style

and inspection).

Signs and Access for XXXXXXX XX users with special

needs.

- Weak Points:

Sufficient lockers.

Employees in bad mood.

MAKE THE USER AUTONOMOUS

UPDATED COLLECTION, THAT MEETS USERS NEEDS

43

Phases:

Consolidating the Alternatives – Large

-Group (2.3.2);

Field Stage:

c) Define and Combination

44

Phases:

Consolidating the Alternatives – Large

-Group (2.3.2);

Field Stage:

c) Define and CombinationApplication

Field Stage:

d) Define and Internalization45

Phases:

Inducing post factu reflection (2.4.1);

Registering individual reflections

(2.4.2).

Field Stage:

d) Define and Internalization46

Phases:

Inducing post factu reflection (2.4.1);

Registering individual reflections (2.4.2).

Application

Results:

Inducing post factu reflection 47

Participant Question

1 What can be done to improve the signage at the university library?

2 Identify the key processes of a library, or that is the flow of aggregation of

value of the organization and the products of the library.

3 What would be a mental map of the needs from a user’s perspective?

4 Levels of need of the user?

5 What is the level of information (capacity) the people who work in reception

must have to filter the users’ needs?

6 How am I going to improve my autonomy in the library?

7 What are the users’ needs? What do they look for in the library?

8 How can signage at the library be improved?

9 How can the signage be improved?

10 Why don’t the library users know about the services (or most of them)?

11 How can the different users be classified for the services offered by the

university library?

12 What were the innovative factors that were proposed by the groups?

Does every design process involve innovation?

Sample of response (1 week later)48

Your sentence:

[Why don’t library users know about the services (or most of them)?]

Your reflection:

I believe that the user does not know most of the services provided by the library for various reasons,

one of them is related to the lack of communication between the library and the students, another I

believe is that the professors are not interested or do not stimulate the students to know the library well,

the services offered, because at times even they don’t know.

A lack of interest by the students in going, looking, searching for information, should be done in a study,

questionnaire or interview with professors, librarians and students to test this hypothesis, but it exists.

The library can be more dynamic, better inform its users about its services, by e-mail, or on bulletin

boards, or by TV screens (with information important to users), or even go to users and ask what

services they really need, and try to adapt the services already existing with these needs.

Or create a site with a clearer, cleaner interface of services offered by the library. In my opinion, it is

the partnership between librarians and professors that should be made to attract the students, mainly

the new ones. And I believe that the librarians should find other forms of demonstrating their function in

the library, which services they can offer. Perhaps conduct a study with the students and ask which

services they think that the library offers, or which services they would like them to offer.

Post Field Stages:

Develop and Socialization49

Phases:

Dev. - Analysis (3.1) and Dev. – Synthesis (3.2)

and

Presentation (4.1).

Develop and Externalization

Post-Field: Develop and Socialization

50

This research had no particular focus

on the Post-Field stage and phases.

The potential contribution of a

research at this estage may be even

more significant than in the pre-field

and field.

Up to 45 Possible Records51

Total: 45

Type Description Phase Quant.

Conceptual Map Conceptual map about the service provision

being studied by the large group.

2.1.1 01

Multimodal

images

Multimodal images prepared by the sub-

groups portraying two positive and two

negative scenarios about the service provision

being studied. Each pair of scenarios allows

portraying a real situation and another ideal

one, both positive as well as negative.

2.1.2 and

2.1.3

4 per sub-group

List of factors List of positive and negative factors defined

by the knowledge sharing that occurs during

the dynamic about the service provision in

study.

2.3.1 2 per sub-group

Messages with

reflections

The messages generated by the participants

with questions, reflections and or instructions.

2.4.1 1 per participant

Return messages The messages of return with the texts of the

reflections prepared by the participants.

2.4.2 1 per participant

Analisys52

Analisys of the Records53

The analysis of four (2.3.1) of the thirty-six records

documentary possible to be obtained, points to

some lines of research to the design team of service.

The "Signs“

Ignorance of the user about the services and

capabilities of the library study

"Layout" and "Reception Desk"

Problems (2.1.1)54

Phases:

Seeing that the large group has a

common understanding (2.1.1); participants reached a consensus on the

main features of the service under study,

since the first map. Convergence

Research on techniques and tools to

deconstruct the initial consensus can

collaborate to improve the proposed

method.

Problems (2.1.2 e 2.1.3)55

Phases:

Generating Positive Alternatives (2.1.2) and

Negative Alternatives (2.1.3) by the Sub-

Groups;

Little use of alternative forms of representation (multimodal imagery).

Problems (2.3.2)56

Phases:

Consolidating the Alternatives –

Large -Group (2.3.2); Once people learned about the service, the

complexity of negotiating different points of

view came to the point where consensus

was difficult.

Divergence

Problems (2.4.2)57

Phases:

Registering individual reflections (2.4.2). of the twelve participants, seven (58.33%)

responded the reflections on time.

Research on tools and strategies that can increase the return rate of participants can collaborate to improve the proposed method.

Conclusion58

General Objective59

The overall objective of proposing a method -

based on the knowledge creation process - for

beginning the process of developing new services

Chapter 4 is where, actually, lies the design of the

proposed method demanded by the general

objective of this study.

Specific Objectives60

The identification and articulation of a set of

literature and the identification of practices were

explored in Chapter 2;

The implementation of the proposed method is

described in Chapter 5, where are treated each of

its phases.

Based on these records is possible to affirm that the

method allows to "guide action to achieve objectives"

(WORREN ET AL., 2002) consistently.

Recommendations61

Intersection area:

Further deepening of the study

Articulate it in a more structured way

Analisys of the records.

Only 4 of the 36 registers were analysed

Multimodal imagery:

The use of multimodal imagery should be further studied.

The communication of this research and the proposed

method needs to use multimodal imagery for their

dissemination

Conclusion62

The final conclusion is that, despite all of the

physical and intellectual effort invested in this

study, there is still much to be done - and just

as much more to known.

References

ALAM, 2006;

BALDWIN ET AL., 2006

BALDWIN; CLARK, 2005

BECKMAN; BARRY, 2007.

BITNER ET AL., 2008

BOLAND; COLLOPY, 2004

COOK ET AL., 2002

DASGUPTA , 2003

DORST, 2006

DORST; CROSS, 2001

DREJER, 2004; ADAMS ET AL., 2006

DROEGE ET AL., 2009;

EDMAN, K. W., 2009

FAGERBERG, 2003

GRÖNROOS, 2008

HALL E JOHNSON, 2009

HATCHUEL; WEIL, 2008

MAGER, 2008

MENOR ET AL., 2002;

NONAKA; TOYAMA, 2003

NONAKA; VON KROGH, 2009

ORDANINI; MAGLIO, 2009;

OVIATT ET AL., 2004

PALOHEIMO ET AL., 2004;

PARTAN; MARLER, 2005

POPADIUK; CHOO, 2006

ROSENTHAL; CAPPER, 2006;

SALOJARVI, FURU E SVEIBY, 2005

SAMPSON E FROEHLE, 2006

SEGELSTRÖM, RAIJMAKERS, E HOLMLID, 2009

SPOHRER; KWAN, 2008

STEMPFLE; BADKE-SCHAUB, 2002

STEVENS; DIMITRIADIS, 2005

VARGO ET AL., 2008

VARGO; LUSCH, 2007

VON KOSKULL, 2009;

WORREN ET AL., 2002

63