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In the present paper, the productivity of labour expressed in terms of volume of turnover on an employee and the gross value added per an employee are used as an indicator of economic performance. The aim of the article is to identify the relationship between the innovation activity of enterprises and the productivity of labour in services in the Slovak economy. Until recently, productivity of services was conceptionally underde-veloped Corsten, The intangible nature of services results from the impalpability of the output of service production, as well as the heterogeneity of services as another service property complicates the creation of a generally valid conception of productivity of services.

Services are highly diversified, broad-range, covering services starting from public services through services for enterprises, which are predominantly knowledge-intensive, up to personal services. These have various properties, consequently it is difficult to determine significant productivity factors and their specificities Lasshof, , Ojasalo, , Baumgartner, Bienzeisler, It means that the customer, who has to be in some way integrated and involved in the measuring of service productivity, is inevitably a key factor for service providers.

It means that the production in the course of value creation, i.

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However, nowadays there is no unified definition ofthe productivity of services, nor a generally applicable method of its measuring Johnston, Jones In contrast to it, the measuring of productivity of services has not been precisely and consistently defined to date. Identifying service productivity is not however unsubstantiated, as the service production in contrast to manufacturing to a great extent requires the participation of people, technologies, internal and external stakeholders mutually linked in the value creation and sharing information.

Value creation through innovation, productivity and partnership [opinion]

As a result of this, there is no universal definition of the productivity of services Hilke, , Maleri and Frietzsche, It is based on the process approach and defines the productivity of services as a complex of various funkctional components. From the aspect of the service provider, productivity of services is determined by three main factors: internal, external and capacity utilisation.

The internal efficiency is identified by the internal structure of the service production, including the service provider's and customers' in-puts; the external efficiency depends on the quality of outputs, mainly from the service quality as evaluated by customers and the output quantity; an efficient capacity utilisation means an optimum utilisation of enterprise capacities in relation to the production quantity.

The utilisation of capacity is optimal, if the demand and the supply are in equilibrium. What is important is the service provider's ability to maintain cost-effectiveness internal efficiency and the coordination of sources with customer expectations regarding the quality external efficiency together with the utilisation of an enterprise's capacity capacity efficiency Balci et al.

Value creation through innovation, productivity and partnership [opinion] - Australian Mining

A purely quantitative approach fails to capture all the specific characteristics of service production and does not express the effectiveness of a service. It means that it is necessary to focus on the quality of outputs. Productivity is evaluated only or mainly from the aspect of a service provider. However, the main role is played by the customer satisfaction.

The better is the assessment of the service quality How is it viewed by the customer? According to Lasshof , productivity is influenced to a crucial extent by the customer, who assesses the quality of service one aspect of quality. This parameter measures and evaluates production effectiveness. Since the customer is a crucial factor of the service provider's success, it is necessary to exert parallel pressure on the production effectiveness and customer satisfaction, Lasshof, The increase in both magnitudes at the same time, leads to general advantage.

Lasshof also suggests that the reflections on productivity also ensue that the effectiveness of production and productivity expressed in quantitative terms may be evaluated separately from one another Lasshof, There are therefore two different views of the productivity of services. In one approach the productivity of services is viewed as part of effectiveness, even though it emphasises the importance of customer satisfaction.

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As a result of this, productivity is expressed in terms of the quantitative performance indicator and is separated from the component of qualitative result. On the other hand, the other approach views productivity and the complex integrating efficiency and performance. In accordance with this view, productivity cannot be separated from quality.

It is also assumed that there remains a large number of various factors in existence, which influence the productivity of services. However, only few of these factors for determining productivity have been examined in greater detail to date. For these reasons, we apply the quantitative approach to defining the productivity expressed as the share of turnover per an employee.

Factors of enforcing innovations in services. An intangible nature of services, requiring the customer's participation and a variable, inevitably leads to a continuous and consequential innovation focused on the customer satisfaction. Success of the innovation introduced in services depends from a clear understanding of customer needs Chesbrough, and Spohrer, Enterprises that are able to identify customer needs and harmonise them with key competences are more profitable and innovative than those that can-not do that Fuller and Matzler, Service innovation is a process that is highly demanding for each employee of a service enterprise.

Likewise technologies and of them especially information technologies play an important role in the service production. A fast boom of the Internet and a mobile links made marketing specialists focus on the speed, planning and electronic access, and in this way accelerate the process of producing or selling services. The customer wishes to obtain the service at any time, that is why the pressure exerted on the production of ICT information and communication technologies as the source of technology innovations in services is increasing. Online marketing, technologies for increasing the effectiveness enterprise activities, planning enterprise resources, managing relations with customers and with suppliers and others enable or facilitate service enterprises to innovate their processes, products, change corporate culture and enterprises organisational structure.

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These technology innovations introduced largely in the past decade have significantly transformed the service sector. In several studies there was explored a strategic role of information technologies IT in innovations including innovation of services ; these studies confirm that IT have considerably facilitated the innovation of services in numerous service industries e. Froehle and Roth list five ways of explaining the diversity of technology - mediated contacts with customers or the relationship with the customer in relation to technology They include the entire spectrum of relationships between the provider and the client: ranging from the technology supporting the direct contact with the customer up to self-service technology.

Services are in general easy to imitate; protection against imitation has been little efficient to date. For this reason, for a service enterprise, a suitable way of acquiring a competitive advantage and asserting itself on the market is to introduce innovation in the process of service production, which differentiates it from its competitors and enables it to win the customer loyalty. That is why it is important to continuously innovate, so that the competitive advantage in a service enterprise might be not only achieved but also maintained. This concerns each party involved in the process of service production, customers, employees, and suppliers.

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  • Each of them plays an important role in the innovation of services. Xiao and Ruoya, A crucial moment in the production of services is involving the client in the process of providing services and developing relationships with the customer. Likewise, marketing and service delivery at the right time is an important moment appreciated by the customer.

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    • Creating rapport with the customer via the Internet and mobile networks is a fast growing trend, IT advancements enable the implementation of new technology innovations in services and support generating new ideas. It is then no longer so decisive which type of innovation the service enterprise introduces. Raymond and St-Pierre confirm that even though the innovation of products and services is often examined separately as completely distinct, these two innovation types are mutually linked in the course of implementing the innovation process into the enterprise value chain Fuller and Matzler, The paper deals with the relation between the innovation activity of service enterprises and the economic effectiveness expressed in terms of productivity of labour in services.

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      It uses the method of correlation between the enterprise innovation activity and the productivity of services in the service sector. For this purpose, one research question and one hypothesis were formulated. Research question: Is the scope of enterprise innovation activities a determinant of the productivity of labour? Hypothesis: Innovation expenditures in enterprises with technology innovation in selected service divisions in Slovakia influence the productivity of labour in these enterprises.

      The verification of these statements was conducted by means of the correlation analysis. Via this analysis, we assessed links between individual variables, which enabled to us to test the initial problems identified. We used Spearman's correlation coefficient, which expresses the rate of dependence of two variables X and Y. The formula for Spearman's correlation coefficient is:. The subject of exploration was the service sector in the SR.

      In the first part of results, we compared values of the productivity of labour achieved in services in the SR and average values achieved in EU countries in the year The given result is the starting-point for exploring the relation between innovation and productivity. In this comparison the productivity of labour is expressed in terms of gross added value per an employee. The given parameter is compiled from the most recent data of the Eurostat database In the second, results part of the paper we used the publication of Slovak Statistics on the innovation activity of enterprises in the Slovak Republic the Slovak Statistics, as a source.

      The document focuses on the research in industry and in selected divisions of services. The research was conducted in the year and concerned the referential period of ; simultaneously, it is the most recent information base of relevant measurement. The effects of innovations expenditures on the productivity of labour was studied in the settings of exclusively technology innovators, namely for reasons of relevant data accessibility. As many as 4, reporting units were involved in investigation. The statistical unit was an enterprise. The data processed are provided in answers gained from 2, respondents.

      For the needs of our investigation, we used data for the following decisions of the service sector classified after SK NACE:. The research classifies enterprises in terms of scope and character of in-novation activity. It defines enterprises with innovation activity as well as those without the innovation activity and the enterprises with completed technology innovation and non-technology innovation.

      Productivity of labour is expressed in the volume of sales on one employee. The aim of the article is to identify the relation between the innovation activity of enterprises and the productivity of labour in services in the Slovak economy. Results and discussion.