This paper is focused on the service innovation and management of innovative changes in present. Though, innovation is one of the most significant elements in the development of service science, but mostly considers as a little further to the repackaging of a existing theory and practice from a wide range of disciplines and cannot be considered as a new, emergent, business or management paradigm. This paper is written to give evidence from the management of change perspective that service innovation is actually a separate domain of excellence in management of services in contemporary theories of management. Service Innovation
The concept of service innovation arises from the definition of service in broad context i.e. services are ‘intermediation activities’ which involve customer and employees of the company (Crespi et al., 2006). Production and consumption can be involved simultaneously like in doctor check up or barber services and can be done separately as in transport business. The connection of consumer with the production and consumption of the service is inevitable in contrast of a manufacturing business which can be done without the involvement of the consumer.
In general, innovation is the successful achievement, processing, and implementation of new ideas. This concept is very much included in the process of service innovation, based on the innovative and practical approaches for the enhancements of delivered services. The problem with service innovation lies in the fact that it is not easily recognizable as compared to the production business in which the innovations are clearly visible by the developments in products. Also, many typologies have been discovered by academicians to classify and interpret innovations in service and production. These innovations can be of the nature of suppliers’ dominance, consumer interaction dependent and integrated innovations from all stake holders of the business. The processes and paradigm of management can also be innovated through regular feedback of consumers and other stake holders. The paradigm of management changes when organization changes the philosophy of operations, leadership, and processes to achieve a new competitive edge in highly competitive service industry.
The innovation frameworks are not only dependent of the availability and distribution of physical resources but also on the knowledge and mental assets of the firm. The fundamental and pragmatic changes require the contributions from the intellectual resources of consumers and employees to share the growth of service delivery. The repositioning and re launching of brand, service , and /or products, are the decisions mainly focused on the market analysis, consumers feed back, and the employees first hand experiences in delivering the services to the consumers.
Various Perspectives of Innovation
The main question arises in relation with the distinguished features of service innovation as compared to the other forms of innovation. The conventional literature on service innovation cannot encompass all aspects of innovation in limited frames of reference. The generation of value in the communication of consumers and the company provide basis for innovations in designing of appropriate services. Also, the company is required to increase the internal capabilities and to focus on competitive advantage in order to utilize all available resources to satisfy the needs of consumers. The participation of customers and suppliers is also vital to create value in services offerings to remain competitive in the business. Significance of service science
The services industry has become one of the fastest growing businesses with marvelous potential for growth and profit generation. In recent years, services sectors contributed to large part of gross domestic products (GDP) in developed and underdeveloped economies (Paulson 2006). The industries have shifted from...