Leaders assume that customer experience and profitability have a strong and positive relationship, but the evidence tells a different story. This was the topic for a recent seminar with CSI researchers and several partners.
CSI News and Blogs
CSI-researcher, Professor Tor W Andreassen was part of the dissertation committee when Oana Pop defended her thesis at Hasselt university.
Methods of payment have changed over the years. From bartering via cash to electronic payment. In a digital world, will cash disappear? Read new blog post by Tor Walin Andreassen.
Sustainable business models is a research-topics at Center for Service Innovation’s (CSI). We are delighted and honored that Associate Professor Lars Jacob T Pedersen, is ranked 16th on #thinklist and recognized for his work on sustainable business models and circular economy.
Through the Norwegian (NII), American (AII) and Swedish (SII) Innovation Index we claim that sustainable businesses have three characteristics: a) they deliver high-quality goods and services, b) they innovate on a regular basis, and c) they launch innovations that trigger active emotions.
Last week, a team of researchers from Karlstad Business School working with the Swedish Innovation Index visited the CSI team at NHH to share experiences and discuss joint research opportunities.
In a study on Norwegian companies, Krysta Alexa Singh and Associate Prof. Tina Saebi discuss the barriers that are holding back managers to re-invent their business model.
Read new CSI blog written by Ove Oklevik, Herbjørn Nysveen and Per E. Pedersen.
CSI congratulates BEKK as the “the year's consultancy firm”, awarded by Den norske dataforenings Rosing-award.
NHH Forum is an annual academic seminar arranged by the faculty and students at NHH, in collaboration with large corporations. This year CSI partner Telenor was invited.
The article “Business model innovation and value-creation: the triadic way” has been published in Journal of Service Management.
Research has documented significant positive effects of sensory marketing on consumer outcomes in the product domain. Meanwhile, service research in this area is still at an early stage holding great potential for service marketing theory and practice.
Read new CSI blog written by Costas Boletsis and Amela Karahasanovic.
CSI was well represented at the annual “Frontiers in Service 2018” conference, hosted by Texas State University.
The CSI research group held their annual out of country seminar, 22-24 August – this year in Cambridge.
CSI researchers Linda Hollebeek and Tor Andreassen, with Professor David Sprott of the University of Wyoming, are leading an exciting new Special Section in the Journal of Service Research, an ABS 4 publication. The closing date for submissions is November 15.
I am an entrepreneur again, writes CSI's advisory board member Irene Ng.
In the ever-changing world of business, firms ought to be capable and willing to adapt the business model to continue to prosper. Highly emotional leaders may have a negative impact on firm business model adaptation, and deliberate recruitment of leaders and managers could better facilitate business model adaptation and long-term success. Read new CSI blog by Camila Aarøen.
I forgot when was the last time I used banknotes or coins (I guess you do not remember when you used them either). We get and make payments in kroner, dollars, euros, yens, or whatever currency your state issues, but it could equally have been points – after all, all we see is just numbers on screens. This is not a big deal in itself, and history is full of examples of various things used as currency: animal skins, barley, cocoa beans, weapons… well, anything members of a particular society valued because they needed to use it in their lives. We do not really know (and probably will never know) for sure how people transitioned from this barter or barter-like systems to a more monetary system. Yet, I think it is fair to assume that no one issued centrally the very first representative money, that is, a medium of exchange that only represents value, but has almost no value on its own. Not a king, not a single temple, and fairly certainly, not a bank (I know that you know they had not existed yet). Most probably, the first representative money was something that was in a relative shortage, had a standardized but aesthetically pleasing appearance, and was rather useless as a tool or food. Our monetary systems, however, are a direct descendent of a bit different type of money – the representative money that were issued centrally about 2600 years ago. The reasons for their wide acceptance are obvious: besides mere coercion, this has been the fastest route to get a medium of exchange universally recognized and (more or less) trusted. The current wave of digitalization has opened new opportunities, and there is hardly anyone who has not heard of cryptocurrencies (“Bitcoin” has already become the new mantra). Their main characteristic relevant for this discussion is that they are decentralized: they do not require a central authority, and, as a result, have no connection to central banks or governments. Now, you might notice that this is, in some way, going back to the roots of representative money. To be honest, from the grand perspective, this is little more than going back to the roots – just a bit more state-of-the-art and on quite a larger scale. According to the 19th century economist William Stanley Jevons, besides functioning as a medium of exchange, money functions also as a common measure of value, a standard of value, and a store of value. For very many people across time and space, this would invoke associations with gold, silver, diamonds, or similarly shiny stuff. Ironically, these, too, have as much real value as representative money (here, I am talking about value as something important in and for life). Considering that money has proved to be quite convenient, is there anything else that could perform the functions of money and have real value for everyone? First, we have to identify what we actually exchange. In service research, there is a fast growing field of service design, which views market offerings not as tangible or intangible products, but as experiences: individuals and organizations just set up the stage for customers and provide artifacts that enable (always subjective) experiences. A bit different but not conflicting view comes from Vargo and Lusch, who have postulated in their service-dominant logic that the fundamental basis of exchange is service. For them, service is application of competences for the benefit of another party. An auto mechanic knows how to fix a teacher’s car, the teacher knows how to educate the auto mechanic’s child. When they apply their knowledge, they basically exchange their service. If it is not barter, money “mediate” this exchange. In most cases, the seller sets the price that the buyer either accepts or not, but price is never truly a guarantee of the good experience. There are also other pricing strategies – one of them being “pay what you want”, that is, buyers are free to pay any amount. The assumption is that customers will pay more if they like what they get, but this does not exclude that they can decide to pay nothing even if they truly enjoyed service. Could the current technological development enable a more objective evaluation of subjective experiences given that these experiences come from people servicing each other? The only thing that mattered for one of the most famous English philosophers, Jeremy Bentham, was happiness, and by “happiness”, he meant no more than a predominance of pleasure over pain. Putting (in many cases eligible) criticism aside, the beauty of this principle is in its simplicity and universal applicability, even to other species. The amount of pleasure and pain is also relatively easy (or will very soon be relatively easy) to measure with gadgets. What if, instead of representative money, we will have a “happiness wallet” that will grow bigger based on the measurement of others’ experiences with our service? In this case, every recipient of service – that is, everyone - literally becomes the issuer of money. And what if we will have to pay from our “happiness wallet” for causing pain to others? Instead of using price that filters out the uncommitted or impoverished, providers may allow access to their service based on the minimum size of the happiness wallet, effectively filtering out bad guys. Due to the space limits, I will let your imagination fly without my further assistance. For my part, I can easily imagine a healthier, more cooperative society with fewer bullies, fewer narcissistic leaders, more polite strangers, and more satisfied customers. I can also imagine a society where people with disorders characterized by troubles with social interaction and communication may become poor and require social welfare “payments”. Yet, we have already accumulated quite a large body of both scientific and philosophic literature, which, I believe can help us in thinking over possible challenges and taking a truly innovative step towards a happier society. Read more CSI news and blogs
Devices that track our steps, mood or sleep are becoming increasingly popular as we strive towards increased well-being, but how often do we actually think about what well-being means for us, and how does this shape service design?
Classic theories of innovation and of the adoption of innovations have traditionally focused on the firm or the entrepreneur as the main source of innovation and the consumer, customer or user as the adopter. Recent research on open innovation, platform-based innovation and innovation ecosystems has questioned this view and increasingly considered innovation and adoption as consequences of the evolution of new, reciprocal value propositions between numerous actors in large ecosystems. Trying to understand service innovation and service adoption, we have been struggling with these two opposing views. We have missed theories and models explaining situations amidst these two extremes - between situations where clear roles are predefined and traditional firm/customer relationships are observed (e.g. single-player mobile game) and situations where adoption depends on the simultaneous change of practices among numerous actors in an ecosystem (e.g. electric cars). What we have come up with to assist us is the term microecosystem. The term borrows from the ecosystem literature but is inspired by the idea that a larger ecosystem can be divided into numerous microecosystems that share many of the same characteristics, but at a smaller scale. The concept comes from plant biology, where the ecosystem around the plant is increasingly understood as a complex but highly important small ecosystem in itself. It is even proposed that understanding this microecosystem is the solution to both global warming and fertilizer and pesticide challenges in agriculture. But, let's be practical and see how the concept may help us understand three innovations we have been working with; one in retailing, one in the public health sector and one industrial service innovation. In retailing, our models of the relationships between firms and consumers are of the traditional sort, with well-defined roles. Consequently, innovation often resorts to incremental product innovations. The sector is struggling with rigid business models, consumer criticism and regulatory threats due to lack of competition and consumer satisfaction. Thus, radical innovation typically requires systemic changes. However, in-between the extremes of marginal product innovations and grand systemic changes, things happen. The handcrafted beer and cheese movements have somehow managed to get hold, and recently, we have seen the growth of alternative food distribution systems in Scandinavia in the form of Reko-rings. These rings are in fact hundreds of food microecosystems where producers, ring-administrators and consumers meet using Facebook as the marketing communication and ordering system, modern mobile payment systems like Vipps and Swish as the transaction platform and parking lots as the distribution channel. What is innovated and adopted is unique to each of the rings which are best considered as separate microecosystems. They cannot be understood in traditional firm - customer terms. For example, highly skilled and nutrition-focused producers are among the most important and demanding consumers in the rings. In health services, the predefined roles are different, but our models are still fairly traditional. We often think that to meet the future challenges of caring for the growing population of the elderly, grand systemic changes are required. However, practices change at the smaller scale as well. For example, in Scandinavia, the phenomenon of "Everyday rehabilitation" has gained in popularity with its main focus on reconsidering the value propositions and relationships in the microecosystems around each care taker from focusing on doing what is required for the care taker to helping the care taker master what is required. This is why we now consider innovation in health care in a project in Bergen municipality as innovations in the practices of health care in each microecosystem of caretakers, "next in kins" (including relatives and friends) and heath care personnel of different kinds (including nurses and doctors). The unit of analysis is not the care taker or the health care service system, but these smaller microecosystems. For example, we develop models of the shared conceptualizations among the relevant members of what the "practice of living at home longer with technology assistance" means rather than models of what the care taker believes about a specific assistive technology. What is innovated and adopted is the "shared practice of the care taker living at home longer" rather than some particular assistive technology. In fact, this practice may not involve technology in the traditional sense at all. Finally, industrial service innovation is often met with similarly predefined roles and traditional models. This is why one often thinks that sustainable production requires systemic changes in large ecosystems of manufacturers, business customers and regulators. However, also here, things change at the smaller scale, particularly in different forms of circular production micoecosystems that are parts of a larger ecossystem but also autopoietic, to use an old and forgotten term from cognitive and system sciences. Sometimes, it is possible to define circular product-service systems that require less radical changes in reciprocal value propositions among a smaller set of actors to obtain significant sustainable innovations. In Norway, one example is the "biorest" innovation. It implies that instead of citizens and municipalities sending biological waste to treatment plants and farmers to spread the manure of their animals in the fields, manure may be used as a catalyzing ingredient in biogas production based on household biological waste. This is well-proven science and technology. However, it requires changes in the value propositions and practices of all actors involved in the biological waste/manure microecosystem as well as developing the new relationships of this microecosystem. In the Vestfold region, this was solved by a service platform company taking the role as a facilitator for practice change. The result involves more transport of manure and biological waste material, but the process produces methane that is used for all transport vehicles. In addition, enough gas is produced (and not any longer sent into the atmosphere) to power all vehicles handling household waste collection and several local busses. In addition, farmers get back the "biorest" as a high-quality fertilizer to spray on their fields with no methane and significantly less carbon loss to the atmosphere. What is innovated is a new shared practice of local waste and manure treatment that is jointly adopted by all actors in the microecosystem of "biorest". Hopefully, these three examples illustrate how the concept of microecosystems assists us in understanding and facilitating innovation and adoption at a level beyond the individual firm but below the complete ecosystem. The term has also made us more optimistic regarding sustainable innovation and less pacified by the overwhelming challenge of systemic change required by many of society's grand challenges. Read more blogs from CSI
Reputational gain of introducing green products and services may be strong, but why are consumers reluctant to choose green over non-green alternatives?
Service innovation is important. But how can you manage if you do not measure? An open invitation to global research cooperation in measuring perceived innovativeness – a new approach!
AI is increasingly reshaping service by performing various tasks, constituting a major source of innovation, yet threatening human jobs
Mapping and visualizing the expressive and emotional value-in-use of products promises to be a interesting approach to delivering greater value in services. Research at AHO is starting this investigation.
There is an old saying that satisfied customers tend to be loyal. Despite being satisfied customers leave. Here we provides three reasons why.
Researcher at CSI (Sintef) and M.Sc. Dimitra Chasanidou at the Department of Informatics at UiO will be defending her dissertation for the degree of Ph.D: “User participation in innovation platforms: empirical studies and a tool to design for motivation“.
In March 2018, CSI hosted an event at Telenor for partners to discuss the implications of digitalization on new business models for service based companies. The debate revolved around whether the “old” thinking of value chains and processes are “obsolete” and if the new business models in platform companies is the only way forward.
2017 has been a productive and rewarding year for CSI and its partners. Read and learn from “voices from researchers and partners”.
Customer loyalty and perceived innovativeness – some observations
Healthcare industries are in critical conditions, and many believe smart technology is the cure. How does this technological game changer disrupt business models, and what are their strengths and challenges for survival?
Deep understanding of customers’ pain points and problems, and the reasons behind, in given circumstances are roots for differentiation. Uncovering the customers job-to-be-done, creating customers desired experiences and aligning and implementing internal, corporate processes are key to competition and differetiation.
In the age of the sharing economy, consumers are increasingly being offered access instead of ownership. When consumers feel guilty about owning, access-based services might bring relief.
18th January the Norwegian School of Economics and CSI, will announce the 2017 findings for The Norwegian Innovation Index.
CSI-researchers are guest-editor for a new special JBR-issue on adoption. The goal is to highlight the latest on adoption research.
Customer Inconvenience and Price Compensation. A Multiperiod Approach to Labor-Automation Trade-Offs in Services
The paper “Customer Inconvenience and Price Compensation. A Multiperiod Approach to Labor-Automation Trade-Offs in Services” has been published in Journal of Service Research
To succeed with co-creation, brands have to work along four building blocks: Dialogue, access. risk assessment and transparency. Although all four are important, we here want to emphasize the specific importance of transparency.
Increased customer satisfaction and enhanced customer experience isn’t necessarily a driver for increased customer lifetime value, and doesn’t always lead to better profitability
Online grocery shopping is an increasing trend. In 2017, 11.6% of Norwegians bought their groceries online, which is twice as much as in 2016, and even more people are thinking about doing so.
Dyreparken, inFuture and Forskningsrådet (The Research Council of Norway) cooperate on utilizing location data to create better customer experiences and support strategic decision making. That’s how you win awards.
Time is one of few resources which you cannot save for later use. Sometimes time passes by slowly. Sometimes fast. Sometimes we have too much time available. Sometimes we have too little. The fact is that time impacts every aspect of our lives – also the services we decide to integrate into our lives. Paradoxically, while concrete, time resides in the measuring of it, which makes it solely a property of the human mind.
CSI-researcher, Seidali Kurtmollaiev, has just published an article with a radically new and slightly provocative view on the central concept of modern strategic management - dynamic capabilities.
On 28 August CSI partner Livework held a seminar on Linda Hollebeeks current work on Customer Engagement Innovation and Design
From 22-25 August, the Center for Service Innovation (CSI) is having its annual meeting, held in Krakow, Poland this year.
There is a need for companies to become more sustainable by taking part in the circular economy. We look at how retailers in Norway can “close the loop”, so that not more waste is created. For that, we propose some innovate business model ideas.
Read new CSI Blog by Tor W. Andreassen, Harald Krogh, Per E. Pedersen and Camilla AC Tepfers. In Norwegian.
When thinking of disruption, an old saying comes to mind: You can run but you cannot hide! Today, no industry is protected from being disrupted... Read new CSI Blog by Tor W. Andreassen
Read the new CSI blog by Tor W. Andreassen, Director at Center for Service Innovation.
Read new CSI blog by Bart Larivièrea, David Bowenb, Tor W. Andreassen, Werner Kunzd, Nancy J. Sirianni, Chris Voss, Nancy V. Wünderlich and Arne De Keyser.
Our latest book from CSI-researchers´ pen: "Innovating for trust" (Edward Elgard, 2017 - released 28 July) summarizes our unique experience and approach to service innovation.
Nation equity still plays a central role in product evaluations even in today’s international environment. But studies show that Norway lacks clear associations of its production and service competences as perceived by its major international partners, writes Alexander Jakubanecs.
Read new CSI Blog by Magne Angelshaug and Tina Saebi.
QUIS is held every second year and attracts around 200-250 leading researchers and executives from all over the world.
Read new CSI blog by Tor W. Andreassen, Line Lervik-Olsen and Seidali Kurtmollaiev.
CSI Advisory Board member Dr. Roland T. Rust was, together with four other outstanding researchers , officially appointed Honorary doctor at NHH 9 June 2017, when NHH celebrated the 100-year anniversary of the Norwegian Parliament’s decision to establish the institution.
Every manager and every researcher needs to understand the rapidly changing needs of customers. Understanding what works, what doesn’t, and most importantly, what’s next is the only way to ensure success.
The winner of NHH’s Research Dissemination Award 2017 is professor Tor Wallin Andreassen.
Customer journey mapping have been taken up as a way of work in Telenor, to support the company in being customer-centric. Read new CSI blog by Ragnhild Halvorsud, Knut Kvale and Asbjørn Følstad
Companies investing in research are doing better in times of crisis. They simply sell a lot more. Read the article in Norwegian...
Read new CSI blog by Birgit A.A. Solem and Linda Hollebeek.
Strategic design could be viewed as the nexus of where Strategy and Design is today and possibly as the very edge of service innovation. Read new CSI blog by Daniel Grönquist and Alvaro Marquez from the EVRY Strategic Design Lab in collaboration with Method.
And how can design thinking impact return on investments? Watch the "Pracademy Interview" with Tor W. Andreassen.
While the notion of customer engagement (CE) has captured the interest of managers for many years, academic research within this topic area has emerged only relatively recently. Read new CSI blog by Linda Hollebeek.
CSI Advisory Board member Roland T. Rust is one of five professors who are appointed new honorary doctors at NHH. Read more...
The complexity of Customer Lifetime Value (CLV) -calculation limits practical implementation. Can we use machine learning to overcome this challenge? Read new blog by Stian Daazenko.
Watch the lecture "Sustainable business models: Innovation for green business opportunities" with Lars Jacob Tynes Pedersen and Sveinung Jørgesen. Summit "Næring for Klima", 27 Mai 2015, Oslo.
Video is in Norwegian.
We stand in the 4th Industrial Revolution! New technology, robots and digitization are changing the way we work... See Vibeke Hammer Madsen’s blog (in Norwegian).
Read and download CSI Annual Report 2016. The report gives you a glimpse of some of the great things we did in 2016.
On Thursday, March 16th, a very interesting seminar took place at SINTEF, Oslo on Virtual Reality (VR) and Augmented Reality (AR) in services.
Overall, these discussions generated a wealth of research, partnering and collaboration opportunities within the areas of VR, AR and service design that are key priority areas on CSI’s strategic research agenda.
During a recent informal internal event, Rune Bjerke, the CEO of the biggest bank in Norway (DNB), emphasized that the most important barrier to become more innovative, is organizational culture.
The Rise of the Sharing Economy and its Influence on the Fashion Industry.
Innovation rankings of countries or industries are important as they steer politicians’ priorities and actions. The current media image of Norway is one of an innovation laggard. This hurts. But do the existing rankings actually mirror the reality?
While artificial intelligence and automation acclaimed at the beginning of 2017, I'm not sure if this is a good or bad. This blog is written in Norwegian.
How do we manage the high uncertainties coming along with digitalization? Design thinking is one possible answer – if its key principles are rooted in the corporate culture.
This autumn, our edited volume "New business models in retail - Innovating for a digital and sustainable future", will be published by University Press (in Norwegian).
2017 could be the year that Artificial Intelligence, the Internet of Things and chatbots go truly mainstream. Telenor Group’s Research arm today publishes the key global Tech Trends identified for the coming year.
Design thinking is not a new term, and originally appeared in the 1950’s. However its recent popularity can be traced to Tim Brown from IDEO, and an article in Harvard Business Review in 2008.
We are facing a sustainability problem of massive proportions. There is widespread agreement that the business models of the future need to be transformed considerably to mitigate and adapt to climate change, manage resource scarcity and address systemic environmental risks.
At TEDxBergen Professor Andreassen talks about the rapidly growing phenomena of Massive Open Online Courses (MOOC).
Business models define how companies create, deliver and capture value. But business models are not static – they need to be adapted to changing market conditions.
Innovation has become a buzzword in business today, as new-product sales advantages so often flow from new designs or features. Think mobile phones, tablets, or even autos. But apart from product or service leaps, can innovation in the way a company conducts business give it a leg up?
Listen to Tor W. Andreassens presentation at Karlstad Service Researchs Centers 30th anniversary, where he was appointed international fellow.
Speech given at LiveWork’s launch of their new book “Service Design for Business” at DOGA 4th April 2016.
The Best Practitioner Paper Award and Highly Commended Paper Awards to CSI partners.
Marketing Science Institute just released the report “2016-2018 Research Priorities”. One of the five defined research topics is directly linked to CSIs research focus on innovation and design.
Business models and business model innovation have become increasingly influential in management research, as well as in managerial practice.