Smart Service Innovation: Organization, Design, and Assessment

Background: The emergence of technologies such as the Internet of Things, big data, cloud computing, and wireless communication drives the digital transformation of the entire society. Organizations can exploit these potentials by offering new data-driven services with innovative value propositions, such as carsharing, remote equipment maintenance, and energy management services. These services result from value co-creation enabled by smart service systems, which are configurations of people, processes, and digital technologies. However, developing such systems was found to be challenging in practice. This is mainly due to the difficulties of managing complexity and uncertainty in the innovation process, as contributions of various actors from multiple disciplines must be coordinated. Previous research in service innovation and service systems engineering (SSE) has not shed sufficient light on the specifics of smart services, while research on smart service systems lacks empirical grounding. Purpose: This thesis aims to advance the understanding of the systematic development of smart services in multi-actor settings by investigating how smart service innovation (SSI) is conducted in practice, particularly regarding the participating actors, roles they assume, and methods they apply for designing smart service systems. Furthermore, the existing set of methods is extended by new methods for the design-integrated assessment of smart services and service business models. Approach: Empirical and design science methods were combined to address the research questions. To explore how SSI is conducted in practice, 25 interviews with experts from 13 organizations were conducted in two rounds. Building on service-dominant logic (SDL) as a theoretical foundation and a multi-level framework for SSI, the involvement of actors, their activities, employed means, and experienced challenges were collected. Additionally, a case study was used to evaluate the suitability of the Lifecycle Modelling Language to describe smart service systems. Design science methods were applied to determine a useful combination of service design methods and to build meta-models and tools for assessing smart services. They were evaluated using experiments and the talk aloud method. Results: On the macro-level, service ecosystems consist of various actors that conduct service innovation through the reconfiguration of resources. Collaboration of these actors is facilitated on the meso-level within a project. The structure and dynamics of project configurations can be described through a set of roles, innovation patterns, and ecosystem states. Four main activities have been identified, which actors perform to reduce uncertainty in the project. To guide their work, actors apply a variety of means from different disciplines to develop and document work products. The approach of design-integrated business model assessment is enabled through a meta-model that links qualitative aspects of service architectures and business models with quantitative assessment information. The evaluation of two tool prototypes showed the feasibility and benefit of this approach. Originality / Value: The results reported in this thesis advance the understanding of smart service innovation. They contribute to evidence-based knowledge on service systems engineering and its embedding in service ecosystems. Specifically, the consideration of actors, roles, activities, and methods can enhance existing reference process models. Furthermore, the support of activities in such processes through suitable methods can stimulate discussions on how methods from different disciplines can be applied and combined for developing the various aspects of smart service systems. The underlying results help practitioners to better organize and conduct SSI projects. As potential roles in a service ecosystem depend on organizational capabilities, the presented results can support the analysis of ex¬ternal dependencies and develop strategies for building up internal competencies.:Abstract iii Content Overview iv List of Abbreviations viii List of Tables x List of Figures xii PART A - SYNOPSIS 1 1 Introduction 2 1.1 Motivation 2 1.2 Research Objectives and Research Questions 4 1.3 Thesis Structure 6 2 Research Background 7 2.1 Smart Service Systems 7 2.2 Service-Dominant Logic 8 2.3 Service Innovation in Ecosystems 11 2.4 Systematic Development of Smart Service Systems 13 3 Research Approach 21 3.1 Research Strategy 21 3.2 Applied Research Methods 22 4 Summary of Findings 26 4.1 Overview of Research Results 26 4.2 Organizational Setup of Multi-Actor Smart Service Innovation 27 4.3 Conducting Smart Service Innovation Projects 32 4.4 Approaches for the Design-integrated Assessment of Smart Services 39 5 Discussion 44 5.1 Contributions 44 5.2 Limitations 46 5.3 Managerial Implications 47 5.4 Directions for Future Research 48 6 Conclusion 54 References 55 PART B - PUBLICATIONS 68 7 It Takes More than Two to Tango: Identifying Roles and Patterns in Multi-Actor Smart Service Innovation 69 7.1 Introduction 69 7.2 Research Background 72 7.3 Methodology 76 7.4 Results 79 7.5 Discussion 90 7.6 Conclusions and Outlook 96 7.7 References 97 8 Iterative Uncertainty Reduction in Multi-Actor Smart Service Innovation 100 8.1 Introduction 100 8.2 Research Background 103 8.3 Research Approach 109 8.4 Findings 113 8.5 Discussion 127 8.6 Conclusions and Outlook 131 8.7 References 133 9 How to Tame the Tiger – Exploring the Means, Ends, and Challenges in Smart Service Systems Engineering 139 9.1 Introduction 139 9.2 Research Background 140 9.3 Methodology 143 9.4 Results 145 9.5 Discussion and Conclusions 151 9.6 References 153 10 Combining Methods for the Design of Digital Services in Practice: Experiences from a Predictive Costing Service 156 10.1 Introduction 156 10.2 Conceptual Foundation 157 10.3 Preparing the Action Design Research Project 158 10.4 Application and Evaluation of Methods 160 10.5 Discussion and Formalization of Learning 167 10.6 Conclusion 169 10.7 References 170 11 Modelling of a Smart Service for Consumables Replenishment: A Life Cycle Perspective 171 11.1 Introduction 171 11.2 Life Cycles of Smart Services 173 11.3 Case Study 178 11.4 Discussion of the Modelling Approach 185 11.5 Conclusion and Outlook 187 11.6 References 188 12 Design-integrated Financial Assessment of Smart Services 192 12.1 Introduction 192 12.2 Problem Analysis 195 12.3 Meta-Model Design 200 12.4 Application of the Meta-Model in a Tool Prototype 204 12.5 Evaluation 206 12.6 Discussion 208 12.7 Conclusions 209 12.8 References 211 13 Towards a Cost-Benefit-Analysis of Data-Driven Business Models 215 13.1 Introduction 215 13.2 Conceptual Foundation 216 13.3 Methodology 218 13.4 Case Analysis 220 13.5 A Cost-Benefit-Analysis Model for DDBM 222 13.6 Conclusion and Outlook 225 13.7 References 226 14 Enabling Design-integrated Assessment of Service Business Models Through Factor Refinement 228 14.1 Introduction 228 14.2 Related Work 229 14.3 Research Goal and Method 230 14.4 Solution Design 231 14.5 Demonstration 234 14.6 Discussion 235 14.7 Conclusion 236 14.8 References 23

How Design Plays Strategic Roles in Internet Service Innovation: Lessons from Korean Companies

In order to survive in the highly competitive internet business, companies have to provide differentiated services that can satisfy the rapidly changing users’ tastes and needs. Designers have been increasingly committed to achieving user satisfaction by generating and visualizing innovative solutions in new internet service development. The roles of internet service design have expanded from a narrow focus on aesthetics into a more strategic aspect. This paper investigates the methods of managing design in order to enhance companies’ competitiveness in internet business. The main research processes are to: (1) explore the current state of internet service design in Korea through in-depth interviews with professional designers and survey questionnaires to 30 digital design agencies and 60 clients; (2) compare how design is managed between in-house design groups and digital design agencies though the case studies of five Korean companies; and (3) develop a taxonomy characterizing four roles of designers in conjunction with the levels of their strategic contributions to internet service innovation: visualist, solution provider, concept generator, and service initiator. In addition, we demonstrate the growing contributions of the strategic use of design for innovating internet services, building robust brand equity, and increasing business performance. Keywords: Design Management; Internet Business; Internet Service Design; Digital Design; Digital Design Agency; In-House Design Group, Case Study</p

Coordination and control in project-based work: digital objects and infrastructures for delivery

A major infrastructure project is used to investigate the role of digital objects in the coordination of engineering design work. From a practice-based perspective, research emphasizes objects as important in enabling cooperative knowledge work and knowledge sharing. The term ‘boundary object’ has become used in the analysis of mutual and reciprocal knowledge sharing around physical and digital objects. The aim is to extend this work by analysing the introduction of an extranet into the public–private partnership project used to construct a new motorway. Multiple categories of digital objects are mobilized in coordination across heterogeneous, cross-organizational groups. The main findings are that digital objects provide mechanisms for accountability and control, as well as for mutual and reciprocal knowledge sharing; and that different types of objects are nested, forming a digital infrastructure for project delivery. Reconceptualizing boundary objects as a digital infrastructure for delivery has practical implications for management practices on large projects and for the use of digital tools, such as building information models, in construction. It provides a starting point for future research into the changing nature of digitally enabled coordination in project-based work

Impact in networks and ecosystems: building case studies that make a difference

open accessThis toolkit aims to support the building up of case studies that show the impact of project activities aiming to promote innovation and entrepreneurship. The case studies respond to the challenge of understanding what kinds of interventions work in the Southern African region, where, and why. The toolkit has a specific focus on entrepreneurial ecosystems and proposes a method of mapping out the actors and their relationships over time. The aim is to understand the changes that take place in the ecosystems. These changes are seen to be indicators of impact as increased connectivity and activity in ecosystems are key enablers of innovation. Innovations usually happen together with matching social and institutional adjustments, facilitating the translation of inventions into new or improved products and services. Similarly, the processes supporting entrepreneurship are guided by policies implemented in the common framework provided by innovation systems. Overall, policies related to systems of innovation are by nature networking policies applied throughout the socioeconomic framework of society to pool scarce resources and make various sectors work in coordination with each other. Most participating SAIS countries already have some kinds of identifiable systems of innovation in place both on national and regional levels, but the lack of appropriate institutions, policies, financial instruments, human resources, and support systems, together with underdeveloped markets, create inefficiencies and gaps in systemic cooperation and collaboration. In other words, we do not always know what works and what does not. On another level, engaging users and intermediaries at the local level and driving the development of local innovation ecosystems within which local culture, especially in urban settings, has evident impact on how collaboration and competition is both seen and done. In this complex environment, organisations supporting entrepreneurship and innovation often find it difficult to create or apply relevant knowledge and appropriate networking tools, approaches, and methods needed to put their processes to work for broader developmental goals. To further enable these organisations’ work, it is necessary to understand what works and why in a given environment. Enhanced local and regional cooperation promoted by SAIS Innovation Fund projects can generate new data on this little-explored area in Southern Africa. Data-driven knowledge on entrepreneurship and innovation support best practices as well as effective and efficient management of entrepreneurial ecosystems can support replication and inform policymaking, leading thus to a wider impact than just that of the immediate reported projects and initiatives

EGI: anOpen e-Infrastructure Ecosystem for the Digital European Research Area

Bringing the digital European Research Area (ERA) online means modernising Europe’s research infrastructure by promoting open science through the availability, accessibility and reuse of scientific data and results, the use of web- based tools that facilitate scientific collaboration and ensuring public access to research. As the European Grid Infrastructure (EGI) is the largest European distributed computing infrastructure providing 24/7 access to large scale computing, storage and data resources through a federation of national resource providers, it allows scientists from all disciplines to make the most out of the latest computing technologies for the benefit of their research. This paper describes the methodology and approach for defining EGI’s role in bringing this digital ERA online. The work presented defines the roles and functions of EGI as an open ICT ecosystem, required service redesign, the added value of EGI for the European research communities and demonstrates the role that EGI plays in contributing to the Europe 2020 strategy for social-economic impact

The Abertay Code Bar – unlocking access to university-generated computer games intellectual poperty

Progress report on a digital platform and dual licensing model developed to unlock access to a University repository of new and legacy computer games based Intellectual Property (IP) assets for educational and commercial use. The digital creative industries have been identified by a number of governments as a priority area in delivering sustainable economic growth. Code Bar is an innovation that allows digital products to be commercially successful beyond the end of the Dare competition or coursework submission. To be selected for Code Bar, game products must be well designed for both player and market; technically robust (i.e. operating consistently and reliably on a single/multiple platforms), and be free from ambiguity around 3rd party IP. We describe various technical, pedagogic and legal challenges in developing the digital platform, licensing model and packaging of computer games products for release through the platform. The model is extendable beyond computer games to other software products

Managing the Ethical Dimensions of Brain-Computer Interfaces in eHealth: An SDLC-based Approach

A growing range of brain-computer interface (BCI) technologies is being employed for purposes of therapy and human augmentation. While much thought has been given to the ethical implications of such technologies at the ‘macro’ level of social policy and ‘micro’ level of individual users, little attention has been given to the unique ethical issues that arise during the process of incorporating BCIs into eHealth ecosystems. In this text a conceptual framework is developed that enables the operators of eHealth ecosystems to manage the ethical components of such processes in a more comprehensive and systematic way than has previously been possible. The framework’s first axis defines five ethical dimensions that must be successfully addressed by eHealth ecosystems: 1) beneficence; 2) consent; 3) privacy; 4) equity; and 5) liability. The second axis describes five stages of the systems development life cycle (SDLC) process whereby new technology is incorporated into an eHealth ecosystem: 1) analysis and planning; 2) design, development, and acquisition; 3) integration and activation; 4) operation and maintenance; and 5) disposal. Known ethical issues relating to the deployment of BCIs are mapped onto this matrix in order to demonstrate how it can be employed by the managers of eHealth ecosystems as a tool for fulfilling ethical requirements established by regulatory standards or stakeholders’ expectations. Beyond its immediate application in the case of BCIs, we suggest that this framework may also be utilized beneficially when incorporating other innovative forms of information and communications technology (ICT) into eHealth ecosystems