Service Innovation Management Models: Planned, Iterative and Emergent Innovations

Abstract

Although service innovations present characteristics that make them different from innovation in goods, literature presents traditional innovation management models, whose development has been based on the experience of manufacturing industries, as valid and applicable to service companies. Service innovation may take place in multiple dimensions, considering technological and non-technological elements. It may result from planned efforts, but can also emerge from the service practice, what indicates that these models may not be the only way open to service companies. The present article analyzes whether reference models for innovation management, which have influenced new product and service development activities, are suitable and adopted by service companies in the information technology (IT) sector in Brazil. We analyzed data from 10 Brazilian IT service companies, supplying software development, systems integration and mobile services development. Findings suggest that traditional reference models for innovation management are suitable to service companies, but three other possibilities were identified. These possibilities relate to the innovation processes discussed by Toivonen (2010) and are identified here as (i) compression rapid application model, (ii) experiential rapid application model and (iii) practice-driven model. Even though innovation management models are not able to capture all diversity present in service sectors, acknowledgement of the different service innovation dimensions and innovation processes allow service companies to improve their understanding, develop competencies, and organize better their innovation efforts.