market, and the risk involved with the development of new products and services (Chesbrough 2003; Reichwald and Piller 2009
products, and services of relevance to the company; reduced costs associated with moving a larger
so-called â€oeconnected customer, †who increasingly expects tailor-made products and services based on individualized and immediate feedback.
the time-to-market for new products and services, through shorter development time Partnering in the purpose of innovation is sought also for cost alleviation, during the ever
and is not the official position of the European commission services This work is licensed under a Creative Commons Attribution †Noncommercial †Share Alike 3. 0 Unported licence, available at
logistics, well-being and green services context Sargsyan and Roos argue that hardwired revolu -tion is just behind the corner.
-peans, including new ventures, products, services and processes Turkama and Schaffers elaborate in their article on
-ucts and services that are adopted quickly. Once again we want to stress the importance of the crea
-tions of existing ideas, products or services which are adopted already and successful in some oth
of innovative products and services where produc -ers and consumers both participate. An engage -ment platform is the place where people and their
products and services Innovation vouchers can be powerful when trans -forming enterprises more digital which is essen
looking at future services of public interest becom -ing more user-centric Competitions have been proven to be success
Beyond designing for user experience, OI2 defines innovation as co-creation of services and solutions which add value
through new products and services, even in entirely new sectors at the crossroads of old disciplines.
and services they need, and the suppliers get scalable products and services. If this co-creativity and prototyping in real world settings
would not take place there would be a real risk that the development work would lead to a win-lose set
When products integrate into services and get more complex, we have seen networking between suppliers to be established, e g. in the automotive
when the services were determined by organisa -tional structures. In turn, this also means that the end users will be much more dominant in the innov
-ation process for modern products and services especially on their functional level The innovation process change affects also rad
-tive IOT-based services. Finally, the resulting holis -tic UX model, XD process and use cases are briefly
of innovative scenarios and services including the identification of potential business models as they are expected to consume the resulting services
However, recruited users should fit with the usage context. For example, the Iot based Green Services
use case was launched with the innovative idea of getting real-time air quality that leads to multiple
-crete application/services through the use of a tech -nological platform within a real-life environment
products/services. XD is the practice of designing with a focus placed on the Quality of Service (Qos
solving societal issues (e g. smart city services) but merely requires immersive techniques/technologies for engaging all stakeholders, especially users, in
of Things (Iot) based services, namely: Logistic Ser -vices (LS), Wellbeing Services (WS), Green Services
GS), Retail Services (RS), Environmental Services ES) and Healthcare Services (HS The logistics Use Case
The logistics use-case, set up within the BIBA and Logdynamics Living Lab (LL) environment, follows
an iterative improvement approach in the domain of intra-logistics. From discussion with experts a specific focus on intra-logistics processes has
The Wellbeing Services Use Case The City of the Future Living Lab is involved in the ELLIOT Project within several use case scen
ordering, leisure services and gaming to hospital -ised children. The application use has been moni -tored through various types of data logs, making
The Green Services Use Case The Green Services Use case managed by Inria for ICT Usage Lab in Nice aimed at co-creating green
Iot-based services with a set of stakeholders on air quality and noise measurement via citizen
sensing. During the XD process involving 50 active users, a platform called Mygreenservices has been co-designed with respect of data privacy, offering
various green services such as the visualization of environmental data collected by citizen, the alert services via mail or SMS, the ability to download
data, the gamified forum for sharing ideas and best practices in terms of eco-responsible behaviours Each participant can access to more details of his
The Green Services Use Case The Retail Services Use Case The retail use case was organised in one of the
largest bookstores of Budapest. A dedicated area was used for the pilot where all the books were
and use the other services provided by the smart shopping experience. Over 400 persons participated
services as well 30 O P E N I N N O V A t I O N y E A r B o O k 2 0 1 4
The Environmental Services Use Case The Environmental services use case focuses on an application of ambient intelligence methods
and Iot-based technologies, namely the Smart Home approaches and devices, into an office environment.
application partner for the Environmental services use case The pilot was implemented and installed in the
The Control Unit, which hosts services interfacing the installed sensors and devices, is built on the Arduino platform and an embedded
The Environmental Services Use Case The Healthcare Services Use Case The Cardiovascular diseases (CVDS) are globally
number one among those causing death: more people die annually from CVDS than from any other
The Retail Services Use Case 31 collected in it and Medical Doctor had access to
The Healthcare Services Use Case Figure 11: Instantiation of the Holistic UX Model Instantiation of the Holistic UX Model
adoption of the innovative IOT-based services It also worth taking into account that considering
Iot-based products and services where the com -petition relies on the combination of creating new
Environmental Services based on Pollution Citizen Sensing. The Interdisciplinary studies Journal (ISJ Special issue on Smart Cities, Vol. 3, No. 4, pages 331
Wellbeing Services Use Case Sauro Vicini San Raffaele Hospital sauro. vicini@hsr. it 37 Green Services Use Case
Brigitte Trousse INRIA & ICT Usage Lab brigitte. trousse@inria. fr Retail Services Use Case
Andras Vilmos Safepay vilmos@safepaysys. com Environmental Services Use Case Karol Furdik Intersoft karol. furdik@intersoft. sk
Healthcare Services Use Case Roumen Nikolov Virtech roumen@virtech-bg. com 38 O P E N I N N O V A t I O N y E A r B o O k 2 0 1 4
The next Financial Revolution Is hardwired Introduction The use of mobile phones is growing at a tremen -dous pace,
-ing provision of R & D and consultancy services competence-building, formation of new mar
-tion of goods and services through market or non-market interactions, incubation activ ities financing, negotiation, etc..
-ucts, services and solutions are developed with the involvement of users in their role as lead users, co
-ment services provided by QH innovation envi -ronments by themselves (as part of the devel -opment of public services
It offers a wide range of services: working space, coaching for budding entreâ preneurs, study trips to Silicon valley
novel, and sometimes disruptive, services and prod -ucts return to the people As a result, the public debate regarding the accel
flow of products and services, capital, talent and knowledge, and its existing tremendous innovation capacity.
Products/Services in the market +ACTORS •Senior Entrepreneur Expert board internal+external •Knowledge & Innovation Mkt
KIC Services Tools & mechanisms related •Novelty •Market demand •Competence •Economic viability
-ponents and services, thereby enabling developers across Europe and globally to build, prototype and test their own applications in a range of business
-plementary products and services in †multi-sided markets†(5, 6, 7). Such multi-sided markets act as
with focuses on services, technologies, and high -value-added manufactured goods. However, its exports remain heavily on mining and agriculture
services (off shoring) as a new source of exports (3 An Innovation Council is in charge of identifying and
 Services offered by the companies approach closer to the actual user demand  Virtual companies will be considered by their own
better services demand. We have to be convinced that services can and must grow to meet our needs
We live in a highly competitive environment where we cannot compete in production of products Europe is positioned better to compete in advanced
services: there are many areas in our welfare soci -ety where we are ahead of many other countries
solutions and improve access to services such as health education etc. Otherwise the particularities are buried within the global population data
More precise mapping of needs and services Mckinsey Global Institute says (10) that if US health
of Goods and Services Unilateral Capacity Building Wealth Welfare and Wellbeing as the basis of
-itional goods and services based view to a more humanised view Consider the field of telematics †the provision
of mobile information and services to automobile drivers and passengers. As an example, Take on -Star, which was launched by General motors (GM
-works, call centre operations, and external services such as 911 emergency networks. The hardware and software requirements and the quality levels
cloud platform that enables Onstar-based services to developers. To illustrate its potential, consider a peer-to-peer car sharing service, Relayrides â€
support services, and technicians could respond more rapidly and schedule their visits to accommo -date patient requests in real time
-nect together a variety of services, partners, and collaborative communities as part of the enterpris -ing network.
poor migrant workers who are denied services and benefits when they move. With high levels of cor
sector enterprises can build services and applica -tions that benefit residents across India. Enterprises that become part of the UID applications ecosystem
of services and systems, it does eliminate redun -dant systems and processes that duplicate work
services, and insurance and investment products Only about half of Indian households have a bank
of †production†of goods and services and †relations of production. †Further, expanding joint interests
Goods and Services How: Activities Who: Stakeholders and Enterprises Whence: Individual Human Experiences How: Platforms of Engagements
-riences, and products and services are a means to this human experience-based embodiment of value
appliances and services (7). CIE aims to capture and create Internet-driven growth opportunities and value by combining cutting-edge research
-ing services for companies and organisations on one-stop shop principle OULLABS consists of a unique set of test environ
provides excellent possibility to develop the services with the real users of the services; and not just for
the users of the services. In this context OULLABS has been used to test the services before actually
launching them for good. The user†s involvement has also been used in the procurement processes Living Lab services have been used as part of the
procurement process to test service options from different bidders. The people who are supposed to use the equipment/services under procurement pro
-cess have been able to test all the possibilities and give their comments. These comments have then
been taking into account when selecting the winner of the procurement process City of Oulu has opened also its databases in the
services One example of the city†s activities in the field of open innovation and user involvement is the devel
rifts options and choices, design of services to users partners, business plans. After first contacts with
-able services to users. By the end of the decade the worldwide mobile health market is expected to
of technology and services would come from data analytics such as •How to combine data from different sources
-able sensor based digital services to support home care, professional care and operational care in
services/proof of concepts for personal health and wellbeing, 5) Business models & ecosystem for the
-tion of unobtrusive digital services for monitoring and advancing personal health and wellbeing. For the healthcare system and society Careware will
projects into innovative products and services in areas of vital socioeconomic importance for the future of the European project,
Data, Smart Cities, Space enabled Services and Digital Social Innovation Background, Concept and Objectives EYIF€ s Openeyifâ¢leverages Open Innovation pro
concrete projects, products and services makes the following essential observation about the core idea that is the basis for the Openeyifâ¢concept
actual take-up of innovative services and applica -tions, it is not enough simply to open calls for par
Smart Cities, Space enabled Services and Digital Social Innovation The best ideas and early-stage projects will be
enabled Services and Digital Social Innovation •using a three-stage integrated framework approach based on Open Innovation mechan
product and services that can evolve into seed -type activities generating actual take-up of products, services and applications
will be engaged and mobilised through a distributed pan-European communication campaign at the tar -get communities,
Data, Smart Cities, Space enabled Services and Digital Social Innovation. The Openeyifâ¢foresees a cross-border, European approach that brings
-ware only industry to a full solution and services industry. With the growing availability of all kinds of
many opportunities for new business with services in lighting. It also creates opportunities for new pro
-fessions, such as in the design of lighting services and in the development of software applications for smart solutions:
solutions provide and seek for meaningful services In these projects various public and private organi
•Services At this level meaningful services are developed that provide value for the relevant stakehold
-ers. In urban lighting there are often different stakeholders that use the area, with different needs and wishes.
Smart lighting can offer valuable services for different stakeholders using the ICT based lighting platform
domain of developing new services with lighting The type of jobs is shifting from hardware related
jobs towards the design of lighting services as well is to the development of software applications for
of the services. Municipalities may be able to provide basic infrastructures in public lighting but due to budget restrictions it is not realistic
-ables the creation of various services for different stakeholder needs. The challenge lies not so much
of meaningful services that make sense in this spe -cific area. The type of people needed to perform
more on the ICT and services part. We would espe -cially want to highlight two professions that are
and provide new services for the different stakeholders. Next to these skills, they also need to understand the impact of lighting on
rate of services will be relatively high. New applica -tions will give rise to the need for new lighting scen
-tally innovating existing products and services Continual product innovation is essential for busi -nesses to remain competitive and profitable
brought together as an operational services or collaboration. So each act has limited value in itself but when coordinated they provide a valu
new products and services to market on its own Yet recently, in an effort to expand its product port
infrastructure and operational services. By part -nering with the RAF and engaging the Local Motors
services to suit the tastes of the Finnish customers and negotiating on the terms of the how it could be
successful international services, like social media or search engines, you realise that somehow these services have managed to go passed and beyond
these problems. Someone in the organisation car -ried out the analysis and took the company boldly
As the issue is related to Internet services, it looks rather evident, that there†s no way to gain back
they have structured their services, composed their terms, rights and obligations †learn how the trick
for products and services. †If citizens are involved not we enter up to the old linear paradigm
-ical decisions or creation of services for the market The citizen/user is now an integral part of the innov
possible anymore to create new services alone isolated from the rest of the world and â€oeforce†the
or buy these created services. Oth -erwise, it will result waste of time and resources as the buyers will not be interested in using these
services. As a part of the Open Innov ation 2. 0 eco -system, industry/business/service providers become
the co-creation of services. The users can be both consumers and innovators/participants, given all
developing new products and services (Mckinsey 2008). ) The use of these new technologies is a
to adapt and specialize their products, services and innovation attempts perfectly to the markets they
collaboration structures, consulting services and targeted marketing support One recent study focused on the application of
making products and services with a very high consumer involvement. Therefore, in the investigated firms,
potential customers about our services. We are very happy about the results we achieve with this tool. â€
Services Marketing, 19 (2), pp. 63-69 44. Lasagni A. 2012. How Can External Relationships Enhance Innovation in SMES?
2. 3. Innovate beyond products and services: the relevance of the experience economy for innovating SMES...
products and services or how they can generate income by licensing their technology to other
external partners to create new products or services. An urgent need exists, therefore, to study how
and deliver products or services Each of these SMES provided an interesting case to examine how SMES apply open innovatio n. We
2. 3, we look at how several companies transitioned from products or services to experiences in their
When products or services commoditize, price competition becomes predominant and results in intensive price battles and industry shake-outs.
2. 3. Innovate beyond products and services: the relevance of the experience economy for innovating SMES
many SMES wrap additional services around their products to increase customer value in exchange for a premium price.
Although selling additional services might be a viable strategy in many industries several of the successful SMES we analysed preferred to offer genuine experiences to their customers
Experiences are as distinct from services as services are from goods. Experiences have always been
driver for strategic innovation in SMES, in both manufacturing and services. As products and services
increasingly become commoditized, experiences have emerged as a next step in creating value for customers. Commoditization makes it increasingly difficult for SMES to operate profitably in
by transforming existing products or services into experiences for the customer Curana is a great example that illustrates how commodities such as mudguards and other bike
of individual services (nurses, doctors, cleaning services) is not the main qualifier; indeed, more services can be quite bothersome for patients.
Instead, Prof is centred a customer approach using the patient room as a stage to improve the patient†s hospitalisation experience drastically.
and in offering customized products and services to clients (particularly in business-to-business industries. Segers & Balcaen (see p 35) is a small Belgian
Some small firms sidestep commoditization by turning products or services into experiences. Jan Kriekels, CTO of Jaga (see p 47), expressed it this way:
SMES may also wrap additional services around their product or offer genuine experiences to the customers
or services, but it also limits the number of options for the company to change and diversity
attractiveness of the customers†products or services (e g.,, Curana), and providing new functionalities and increasing emotional value (e g.,
and commercialize the new product or services Most SMES we studied rely heavily on value chain partners and a few additional knowledge partners
or services for specific customers 33 PROF is different: It starts from the patient†s room as customer
or deliver services that were necessary to develop a new concept of the patient room.
All product and services innovations were aligned with and integrated in the new patient room concept,
products and services into a new patient room concept also implied that their value for the usability
services they offer to innovation partners in the network. Because partners in such an innovation
and services to the central firms. Each partner is preoccupied with his own part of the new concept,
services they offer to innovation partners in the network 6. Manage the balance between internal management of the company and external management of
changing market conditions force them to look for new ways to differentiate their products and services
knowledge from external partners to create new products or services. Fourth, managing and organizing open innovation in SMES is quite specific,
The size of the network is determined by the type of products or services the SME wants to launch
reposition their products and services Some of the SMES we described opened new market space,
of readymade products/services developed by third parties (i; the acquisition of processes set up by external parties (ii;
difference in the adaption to open innovation between manufacturing and services firms, and between larger and smaller SMES.
different categories of SMES, such as services and manufacturing firms? What are the most important drivers for SMES to start open innovation practices?
and services (Herstatt & Von Hippel, 1992. More recently, firms stimulate users to co-develop products or technologies,
products and or services Inter-organizational networking might also take the specific form of participation in new or existing companies, for instance through minority holdings or
between services and manufacturing firms. Prior studies have acknowledged the fact that services and manufacturing firms are fundamentally different.
According to Atuahene-Gima (1996) services differ from products in terms of intangibility inseparability, heterogeneity, and perishability. Intangibility refers to the fact that
services can be regarded as experiences which makes it more difficult to assess their value before purchase.
Inseparability highlights the role of the customer in the simultaneous production and consumption of the service.
perishability point towards the variability in the quality of services and the inability to store services when supply exceeds demand.
Their study shows how factors affecting the innovation potential differ greatly between these two groups of firms.
services and manufacturing firms Traditionally, the importance of closed innovation was highlighted primarily for industrial firms.
Aside from the fact that SMES are services or manufacturing firms, they also differ significantly in size.
Services †IT (NACE code 72) 53 17 †business services (NACE code 74) 59 24
†other services (NACE codes 50-71; 92-93) 104 60 216 101 317 Total 376 229 605
4. 2 Operationalizing open innovation Open innovation was operationalized according to the different dimensions mentioned earlier in this paper2
used by both manufacturing and services firms. Oneway analysis of variance furthermore demonstrates that outsourcing R&d is done more frequently by
results show that venturing is more popular among services firms compared to manufacturing firms service SMES spin out new ventures more often.
manufacturing firms and services firms for the other types of open innovation 22 Table 3. Open innovation practices and perceived change in manufacturing and service
Services n=317 F -value Manufacturing n=288 Services n=317 F -value Technology exploitation
Venturing 24%33%5, 8 0. 09 0. 15 3, 8 License IP to other firms 11%8%1, 5 0. 02 0. 02 0, 1
experienced a stronger shift towards more outsourcing of R&d, while services firms experienced a stronger increase in new venturing.
between the services and manufacturing SMES for the other items 5. 2 Size classes SMES are not a homogenous group of firms.
number of specialized services firms to execute this job4 Overall, we can conclude that many barriers for open innovation in SMES are
different for services and manufacturing firms as we expected based on the literature Manufacturing firms are on average more active in the outsourcing of R&d and the
Performance in Manufacturing and Services Firms in Australia. Journal of Product Innovation Management 13,35-52
major differences between manufacturing and services industries, but medium-sized ï rms are on average more heavily involved in open
differences between manufacturing and services ï rms, and between medium-sized and small enterprises. Furthermore
administrative services, etc. Previous open innovation studies have focused primarily on venturing activities in large enterprises (e g.
between manufacturing and services industries. Services differ from physical goods in terms of intangibility inseparability, heterogeneity and perishability (Atuahene
-Gima, 1996. Given the distinct nature of the offerings of manufacturing and services ï rms, differences in the
adoption of open innovation may be very plausible. As physical goods are more separable and homogenous,
applicable to manufacturers than to services enterprises i e. manufacturing enterprises generally tend to operate in
Services IT (NACE code 72) 53 Business services (NACE codes 73†74) 59 Other services (NACE codes 50†71;
93) 104 216 Total 376 Table 2 Surveyed open innovation practices Practice Deï nition Technology exploitation
Venturing Starting up new organizations drawing on internal knowledge, and possibly also with ï nance, human
capital and other support services from your enterprise Outward IP licensing Selling or offering licenses or royalty agreements to
Buying R&d services from other organizations, such as universities, public research organizations, commercial engineers or suppliers
innovation between manufacturing and services enter -prises. For ease of presentation, trend scores have been averaged.
between manufacturing and services were nearly identical output available on request The left-hand side of Table 4 shows only few signiï cant
differences between manufacturing and services enter -prises. Employee involvement, customer involvement and external networking appear to be main types of open
innovation conducted by both manufacturers and services enterprises. We do remark that these practices were deï ned
%Services n  317 %Man Z (U Technology exploitation **po0. 001,*po0. 01, 4po0. 05
In contrast, services enterprises do better on venturing activities (33%versus 24%,po0. 05 The right-hand side of Table 4 reveals that the trend
differences between the manufacturing and services in -dustries with regards to the incidence and trend towards
Services n  317 Mann†Whitney Z (U 0. 09 0. 15 2. 14 0. 02 0. 02 0. 1
growing number of specialized services ï rms to execute this job Overall, we can conclude that many barriers for open
enterprises (as opposed to services companies and small enterprises, respectively. Manufacturing ï rms are on
services. Manufacturers are heavy-users of innovation policies, and for †political†reasons the commissioner of
innovation performance in manufacturing and services ï rms in Australia. Journal of Product Innovation Management 13, 35†52
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