SERVICE INNOVATION

Managing service innovation



Managing service innovation

Innovation strategies have been a major source of interest to organizations in order to achieve excellent source of modernization in the world market. Organizations working in the competitive environment tend to imply innovations in their strategies to acquire globalized impacts with competency. The innovative approach has therefore been under constant debate regarding its effectiveness as it is conceived as high risk. Organizations do fail in their in their strategic planning and cause severe damage to the financial position. This reveals that organizations must be cautious with their innovative strategies.

Innovation is basically the capability of defining and developing new products and services and then delivering them to the market. It is considered as the basic element of creating value in companies and enabling companies to acquire competency(Omachonu, & Einspruch, 2010). Innovation is intrinsically an extremely cross-functional activity.

Service innovation is significant but not easy to accomplish for a number of service organizations. We know that innovative service ideas are of no worth if they are not properly marketable. Therefore, marketability of service innovations is important to make that service a success (Chang, 2011). Following is an example of major service innovations that are evidently more efficient than others in establishing long-term corporate competitiveness (Lovelock, and Jochen, 2006).

Fed Ex (Express package services nationwide focusing on reliability and speed)

CNN (worldwide news service available 24/7)

eBay (service of auction, online between anonymous sellers and buyers)

Google (provide searching information with scope and speed)

A number of researches have identified norms, principles and suppositions concerned in supporting and applying innovation and creativity (Omachonu, & Einspruch, 2010). A model developed by Martins (2000) describes the significance of leadership in creativity, a model culture of organization that affects organizational performance and behavior.

Martin's (1989) model illiterates culture of an organization founded on the Edgar Schein's work and developed over theory of open system which is modified by several authors (Kreitner & Kinicki, 1995; Kast & Rosenzweig, 1985). This model provides an approach, however, also focuses on the interdependence among distinct elements and systems in any organization. It is considered as the basic element of creating value in companies and enabling companies to acquire competency. Innovation is intrinsically an extremely cross-functional activity.

The role of innovation should be the same as always: from a given knowledge, make it the greatest economic or social value as possible. But, given the current difficulties, this paper has ...