6 - 594f10 - Global Innovation Management Global Innovation...

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Unformatted text preview: Global Innovation Management Global Innovation Management Chapter 6: Service Innovations Global Innovation Management Growth of Services In the US, manufacturing employment will drop 5% and goods- producing industries will decline to 13% by 2014 This reflects a global trend stemming from the relentless exponential increase in manufacturing productivity (see Chapter 9) Globally, service workers now outnumber farmers for the first time in history A study the ten largest non-energy firms in the U.S. in 2005 saw 65% of 2005 revenues and 85% of 2005 profits from services Despite the greater challenges in service industries, these numbers underline the importance of corporate investment in service innovation. Global Innovation Management Service Innovation Slick, user-friendly products usually come to mind when consumers and corporations think of innovation Leading companies, innovation consultants, and academic researchers have expanded their definition of innovation from products to services This started with the service nature of many of the dot-coms in the late 1990s Over the next decade, services are expected to eclipse products as the main venue for innovation. Global Innovation Management The Economy in General is Moving to Services Global Innovation Management Service Jobs The growth of innovation in the 20th century was intimately tied to the growth of the service worker Often these tasks were deskilled and formalized: jobs that previously required specialized skills were structured and standardized so that they can be given to the lowest cost worker For example, a hamburger stand in the 1950s would have depended on the speed, judgment and skill of a short order cook to satisfy customers orders A modern hamburger stand would limit the menu, purpose-build kitchen equipment for specific items, allow cooks and order takers to change jobs at a moments notice, and generally minimize any specialized knowledge needed for any specific task Even communication would be standardized around polite, pre-scripted phrases: Welcome to our restaurant, may I take your order: Global Innovation Management Parallels in the Scientific Management of Fred Taylor Fred Speedy Taylor father of the stopwatch-and-clipboard approach to factory management cut the cost of Henry Fords Model T in half yielded similar gains for Isaac Singer (sewing machines) Cyrus McCormick (reapers), and Samuel Colt (firearms) Taylors ideas about the production of cars replaced materials, labor, and...
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This note was uploaded on 11/02/2011 for the course IDS 594 taught by Professor Staff during the Fall '08 term at Ill. Chicago.

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6 - 594f10 - Global Innovation Management Global Innovation...

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