Oxford Institute of Retail Management
Value Driven Service Innovation and the Service Innovation Triangle
A recent volume co-authored by the Director of the Oxford Institute of Retail Management at Saïd Business School, Richard Cuthbertson asks the question: do we know how to innovate successfully in a consumer driven society?
The leading challenge for both business and society today is that future economic growth is increasingly based on services rather than manufacturing products. In our advanced consumer society, services dominate and are provided through digital as well as physical channels by local, national and global firms: service and knowledge-based economies make up about 70% of GDP.
In order to encourage growth, innovation must be understood within this context. However, the Organisation for Economic Cooperation and Development (OECD) reports a considerable knowledge gap when it comes to service innovation.
In their book Innovation in an advanced consumer society, Richard and his fellow author, Peder Inge Furseth, identify the ways in which value can be increased for all stakeholders through both incremental and disruptive innovation, by developing an innovation theory focussed on today’s consumer society: Value Driven Service Innovation. This can be put into practice via a methodology also introduced in the book: the Service Innovation Triangle.
Innovation in a service-dominant, globally-reliant, digitally-enabled, consumer society means that “how” is as important as “what”. Invention can happen in isolation; innovation in today’s world requires collaboration, co-ordination, and integration. Firms need to align their business model, service system, and values with customer experiences that resonate not only with customers, but also with the firm’s owners and suppliers.' Richard Cuthbertson, OXIRM
For more information about Value Driven Service Economy and the Service Innovation Triangle, the volume Innovation in an advanced consumer society can be bought online.