tci 2014 the cluster management as an incubator for service information

The Cluster Management as an Incubator for Service Information Sandra Dijk

Academic 1: The Role of Clusters in Creating Shared Value

11 November 2014

Sandra Dijk

THE CLUSTERMANAGEMENT AS AN INCUBATOR FOR SERVICE INNOVATION

Track: The role of clusters in creating shared value

3Univ.-Prof. Dr. Dubravko Radić

1. Services and clusters: what are services in a cluster context ?

2. Potential and benefits of cluster services

3. Challenges with servitization

4. Research design: service orientation in clusters

5. Typology for cluster services

6. Cluster management to overcome challenges

Agenda


Services and clustersWhat are services in a cluster context ?

Cluster related services particular

beneficial for cluster members in

order to strengthen their

competitiveness.

Services compiled by cluster

members for external customers in

order to generate revenues.

Endogenous Cluster Services Exogenous Cluster Services

Cluster

Services2 Perspectives


Potential and benefits of cluster services

Endogenous Cluster Services Exogenous Cluster Services


Research has shown that service infusion processes are slow, and companies

are unable to extract benfits from service strategies. Lay et al. 2010

Why?

• Firms might not believe in the economic potential of services.

• Service mentality is missing.

• Firms fail to develope a sucessful services strategy or strategic commitment is

missing.

• Lack of service design method skills.

Challenges with service orientation

“ It is difficult for an engineer who

has designed a multi-million dollar

piece of equipment to get excited

about a contract worth $10,000 for

cleaning it.” Oliva/Kallenberg (2003)


Research DesignService orientation in clusters

Initial position Current position Course of action Target position

Survey with german

cluster managers

regarding service

orientation in their

cluster

Sample n=98

Results imply

potentials to foster

service orientation

in clusters

Challenges with

servitization in

general

Assumption:

also true für

cluster members

Structure in clusters

seems to be ideal to

overcome

challenges

1. An

understanding for

cluster services is

needed What are

services in a cluster

context?

2. Development of

methods to foster

service orientation

in clusters

1. Clear

understanding of

service relevance

and potentials

among cluster

members

2. Strong service

orientation in

clusters

3. Expertise

regarding service

design


Research DesignService orientation in clusters

Initial position Current position Course of action Target position

Survey with german

cluster managers

regarding service

orientation in their

cluster

Sample n=98

Results imply

potentials to foster

service orientation

in clusters

Challenges with

servitization in

general

Assumption:

also true für

cluster members

Structure in clusters

seems to be ideal to

overcome

challenges

1. An

understanding for

cluster services is

needed What

are services in a

cluster context?

2. Development of

methods to foster

service orientation

in clusters

1. Clear

understanding of

service relevance

and potentials

among cluster

members

2. Strong service

orientation in

clusters

3. Expertise

regarding service

design


Typology for Cluster Services (1)Endogenous Cluster Services

Feature Feature Characteristic

Service provider Cluster management, cluster members, external

service provider

Service consumer Cluster as a whole, Network within a Cluster, single

organization, indiviudual, cluster management, (region)

Strategic goal of the cluster Public/regional policy driven, private/ business

oriented, research oriented, internationalisation

Relation to sector Non sector-specific, sector spefific

Pricing Membership fee, research levy, funding, output related

price (e.g. attendance fee or consulting fee)


Case Study for Endogenous Cluster Services (1)



service provider





Relation to sector Non sector-specific, sector spefific


price, (e.g. attendance fee or consulting fee)

Typification example 1:

Basic cluster service (cluster club service): generation and distribution of cluster

information newsletter, organisation of networking events, locational marketing,

maintanance of cluster website etc.


Case Study for Endogenous Cluster Services (2)



service provider





Relation to sector Non sector-specific, sector specific


price, (e.g. attendance fee or consulting fee)

Typification example 2:

Individualized cluster service: consulting, trainings, recruiting, matchmaking etc.


TypificationEndogenous Cluster Services

Degree of specification

Deg

ree

of

co

ord

ination

Basic

cluster

service

Individualized

cluster

service


Cluster Management to overcome challenges

Challenges Target position Steps to take by CM

Firms might not believe in

the economic potential of

services / service mentality

is missing

Clear understanding of service

relevance and potentials among

cluster members

• Create awareness for

service orientation (e.g.

workshops, conferences)

• Sharing best practices

Firms fail to develope a

sucessful services strategy

/ strategic commitment is

missing

Strong service orientation in

clusters.

• Creation of knowledge

infrastructure to facilitate

exchange of specific

information and know-how

(task group)

• Matchmaking, initiation of

cooperation

Lack of service design

method skills

Expertise regarding service

design.

• Attracting potential partners

with relevant know-how

(researchers as well as

practitioners)


Contact:

Sandra Dijk

Research Fellow

Chair for Services Management

University Leipzig, Germany

+49 341 97 33 863

[email protected]

Thank you very much for your attention!


Judd, R. C. (1964): The Case for Redefining Services. Journal of Marketing, 28(1):58-59.

Lay, G.; Copani, G.; Jäger, A.; Biege, S. (2010): The relevance of service in European

manufacturing industries. Journal of Service Management, 21(5):715-726.

Menzel, M.; Fornahl, D. (2009): Cluster life cycles – dimensions and rationales of cluster evolution.

Industrial and Coporate Change, 19(1), 1-34.

Oliva, R.; Kallenberg, R. (2003): Managing the transition from products to services. International

Journal of Service Industry Management, 14(2):160-172.

Vargo, S. L.; Lusch, R. F. (2004): Evolving to a New Dominant Logic for Marketing. Journal of

Marketing, 68(1):1–17.

Schrammel, T. (2014): Clusters as an Instrument to bridge Institutional Voids in Transition

Economies, Wiesbaden.

References


Backup


Service orientation and benefits for cluster members

“Briefly, marketing has moved from a goods-dominant view, in which tangible output and discrete

transactions were central, to a service-dominant view, in which intangibility, exchange processes, and

relationships are central.” Vargo/Lusch (2004)

Financial Benefit

Extra revenues

Steadier cash flows

Higher profit margins than products

Marketing Benefit

Services create higher customerloyalty

More oppurtunities to cross sell

Services as problem solving

Strategic Benefit

Sustainable source of competitiveadvantage

Protecting from imitation (product-related service strategies)

18Univ.-Prof. Dr. Dubravko

Radić

Relevance of servicesEconomic perspective

Services are essential for the efficient operation of all economies:

• facilitating commercial transactions

• enabling the production and delivery of goods and other services

• share of workers employed in services is now over 70 % in most developed countries and

catching up in developing countries.


Cluster Life Cycle

Menzel/Fornahl (2009)


Cluster Life Cycle


Vision


Cluster Life Cycle


Necessity for

innovation and

transformation


Typology for Cluster Services (2)Exogenous Cluster Services


Service Provider Cluster members, cluster management

External Consumer Consumers, businesses, public institutions, research

institutes

Type of Service Pure service, product related service, pre-and after-sales

services

tci 2014 the cluster management as an incubator for service information

Economy & Finance

cluster context

german cluster managers

cluster sample n

strong service orientation

service innovationtrack

service strategies

service mentality

clusters challenges