Service-based Innovation and Market Innovation – Illustrated through a Radical Business Model Change in a Personal Injury ‘Lawyer Company

Authors: Bo Terje Kalsaas; Britha Bunk

The focus of this paper is innovation in the commercial service sector. It is motivated by a desire to help create greater understanding of service and market innovation. Our research question is: How can we illustrate the integration between the concepts of service-based innovation and market innovation through a study of changes to legal services within compensation law?A concept described as “service-based innovation” is introduced as a new and alternative paradigm to the dominant understanding of innovation, which is tied to technology and tangible products. Based on marketing theory the concepts of service-based innovation and market innovation are connected and combined in order to contribute to conceptual advances.In terms of theoretical and analytical generalizations we conclude that integrating the concept of service-based innovation with the concept of market innovation seems to be a fruitful approach. The four interacting layers in service-based innovation can be tied both to a new marketing object and to a new market object, where the market object originates from the marketing object. We base our work on the following typology for Layers 1-4 in the applied model for service-based innovation:1) The world of consumption2) The service provider’s business model and strategic values3) Means of marketing and efforts to make the service available (the world of circulation)4) The world of productionHere Layer 1 represents the target: Penetration into the world of consumption is the aim of the efforts. The other layers contain the necessary ingredients – in the shape of values, strategies, actions, and knowledge – for successfully generating the desired “goods” for the benefit of the consumers, the beneficiaries.

Journal: n.a. (n.a. – n.a.)

Web Address: n.a.

Publish Year: 2012

Conference: Rome, Italy (2012)