Διαχείριση καινοτομίας και μάρκετινγκ στις βιβλιοθήκες [Innovation Management and Marketing in Libraries]

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Fachhochschule Köln
Cologne University of Applied Sciences
Systematic Innovation Management
as a Marketing Strategy for Libraries
Prof. Dr. Ursula Georgy
Athen / Thessaloniki 2014

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© Prof. Dr. Ursula Georgy
Content
 Innovation Management an Service Innovation
 Trend Reports: Gartner (Hype Cycle) and
Horizon Report
 Open Innovation
 Open Innovation and Knowledge (Management)
 Open Innovation Survey (2010)
 Outlook

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Innovation Management
and
Service Innovation

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Introduction
Service innovation has become a necessary choice
and management technique in service industries.
Services now are making up about 70% of the
GDP (Gross Domestic Product) in OECD countries.
Libraries are part of the service industry and have
to implement new technologies and services to
improve satisfaction to their users and customers.
Therefore libraries have to build up and to
implement a new kind of innovative culture –
original, not copied.

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Customer Satisfaction and Innovation
Management
The product and service sector has to be aimed at the
customer needs so that each customer as an individual
is satisfied while however the entrepreneurial goals are
accomplished simultaneously.
In the context of service innovation this means that new
services must custom-fitly be tailored to the customer.
Till now good ideas of one's own, however, are too
often realized without analyzing, if the customer needs
these services or if the market is ripe to this.

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Customer Satisfaction and Innovation
Management
 Customer desires ideally are taken into account
in a way as extensive as possible.
 Putting customer desires into action (service)
may seem trivial; but: the customer can
formulate wishes and problems but normally not
solutions.
 The challenge for libraries lies in the conversion
of customers` desires into corresponding
customer requirements and fitting services.

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The Innovation Process
Innovation management must be a systematic
process as an executive function to collect, review,
evaluate, and manage ideas and to bring them as
user-friendly products or services to market.
In the area of libraries systematic innovation is less
developed and one gains the impression that libraries
don´t take strategic action and that innovations are the
result by chance. Attempts of innovative thinking will be
often killed or nipped in the bud.

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The Innovation Process
Komninos, 2005

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Types of Innovations

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Types of Service Innovation
The four dimensions of service innovation:
 „product“ – the service offering
 „process“ – how that offering is created and
delivered
 „position“ – the target market segments, the
underlying positioning via brand etc.
 „paradigm“ – the underlying mental models
about
what kind of business „we“ are and the rules of
the game: business model innovation Bessant et al. 2014, S. 5

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Bessant et al. 2014, S. 6
The Innovation Space

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The Service Innovation Framework
http://www.apo-tokyo.org/productivity/pmtt_022.jpg

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The Service Innovation Triangle
http://www.bi.edu/PageFiles/214077/Service%20Innovation%20Triangle%20Booklet.pdf?epslanguage=en

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Diffusion of Innovations
to Market (Model)
Rogers 1983: Diffusion of Innovations

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to the Market (Model)
and Market Share
http://matthewsonmarketing.files.wordpress.com/2012/11/chap-1-fig-2-everett-rogers-
diffusion-innovation-model1.png

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Trend Reports:
Gartner (Hype Cycle)
Horizon Report

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Gartner Hype Cycle
„Hype Cycles help organizations understand the
landscape of technology maturity and markets, and to
decide which technology innovations to adopt,
postpone or ignore, and when is the time to adopt.“
For libraries it seems to be conceivable first to identify
where a particular librarian-relevant technology lives
along the curve and then to map out where libraries
and librarians live and where they tend to live in that life
cycle.

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Phases of Gartner Hype Cycle
Fenn 2010)

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Gartner Hype Cycle
http://www.virtualtravelog.net/wp/wp-content/gallery/2011-04-hype-cycles/dynamic/Gartner-Hype-Cycle-
Phases-nggid03294-ngg0dyn-600x0x100-00f0w010c010r110f110r010t010.png

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Gartner Hype Cycle of Emerging Technologies 2012
Gartner, 2012

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Gartner, 2013

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2013
Gartner, 2014

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Horizon Report 2014
The New Media Consortium, 2014

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Horizon Report 2014 – Headlines (Extract)
The New Media Consortium, 2014

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Open Innovation

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Need and Solution Information
Customer oriented innovation requires:
 Need information
Information about market and customer wishes / needs.
 found out by customer or non-customer interviews.
 Solution information
Information how customer needs can be implemented
efficiently and precise.
 seldom found out by questionnaires.
What have libraries to do?

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Definition of Closed Innovation
http://www.nansenneuro.net/images/stories/articles/closed_innovation_en.jpg

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Technology Push versus Market Pull
http://www.b4development.com/wp-content/uploads/2011/01/aiPULLvsPush-e1295867991208.jpg

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Definition Open Innovation by Chesbrough
„Open Innovation is a paradigm that assumes that
firms can and should use external ideas as well as
internal ideas, and internal and external paths to
market, as the firms look to advance their technology.
Open Innovation combines internal and external ideas
into architectures and systems whose requirements
are defined by a business model.“
http://images.businessweek.com/ss/09/03/0312_game_changing_timeline/image/11_2000.jpg

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Extension of the Definition 2006 by Chesbrough
„Open innovation is the use of purposive inflows and
outflows of knowledge to accelerate internal
innovation, and expand the markets for external use
of innovation, respectively.“

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Definition of Open Innovation by Chesbrough
http://www.hokkaido-vc.com/english/open_innovation/open_innovation_en.JPG

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Open Innovation
One estimates that depending on line of business 10
to 40 % of all customers are ready to participate
active in innovation processes.
In the result, however, this means that numerous lines
of business not nearly exploit this potential.
Libraries normally don´t see open innovation as a
strategic instrument
Very different roles are conceivable, a customer can
be involved in the process of innovation. His
independence rises continuously from the interview
up to the independent innovation.

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Closed Innovation versus Open Innovation
Chesbrough, H. 2003

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Open Innovation Projects
https://nbry.files.wordpress.com/2014/06/3d-printing-what-ideas-airwolf3d-com.jpg

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Well-known Open Innovation Projects:
Toolkit Jewellery Design Competition of Enlightened
Swarovski Elements

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Lego Digital Designer

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Procter & Gamble: connect + develop

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Open Innovation
and
Knowledge (Management)

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External Knowledge Inflow by Open Innovation
“Open innovation is about knowledge exchange.
Everything else is secondary.”
Hansford 2011
©iStockphoto.com/alwyncooper

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The Strategic Knowledge Framework
Zack 1999

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Strategic Gap – Knowledge Gap
Zack 1999

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Open innovation: the KM dimension of P&G
„For a company famed for its ability to continuously
offer products that match customers’ most current
needs, Procter & Gamble takes pride in the success of
its innovation processes. Mike Addison describes the
essential role knowledge management plays in P&G’s
Open Innovation strategy that looks internally and
externally for new ideas and opportunities.“
Inside Knowledge: posted 10 Jun 2004 in Volume 7 Issue 9
The percentage of new P&G products that include
elements developed outside of the firm has increased
to over 35%.

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Innovation / Knowledge and Human Resource
Capacity
„You need a great team of people with diverse skills to
perform a symphony well, but no team has ever written a
great symphony!
While cross-functional teams are key players in defining
and implementing incremental innovation projects,
cross-functional disruptive individuals tend to be key
players in defining radical innovation projects”.
Leifer et al. 2000

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Human Resource Capacity and Libraries
 Libraries have a large number of customers
and partners from all sectors and branches.
 They have the potential to become and to be a
vital space to engage in collaborative innovative
projects creating and sharing (new) knowledge.
 Therefore especially customers of libraries
can be potential knowledge and innovation
creaters.

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Professional Behaviours finding Innovative Structures
AUA, 2009

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Impact of an organization's ability to innovate
Schnell, 2008

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The Continuous Innovation Process
Tomorrowlab, 2009

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Crowdsourcing
http://memeburn.com/2011/09/9-examples-of-crowdsourcing-before-%E2%80%98crowdsourcing%E2%80%99-existed/

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Crowdsourcing: Starbucks

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Open Innovation and Libraries
“Thousands of libraries in Germany are run by just one
librarian. [...] Here we have a single person doing all the
work that is normally shared between several people in
larger libraries. A one-person librarian thus requires a
very wide range of skills in order to be able to do the job
successfully.“
These aspects are not only typical for one-person
libraries, they are typical for many mid-sized (public)
libraries.

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Open Innovation and Libraries
Technological innovations are introduced to the library
with the intention of providing better library services and
increasing efficiency of library work.
„The library profession attracts individuals of varying
ages, varying degrees of experience, and a range of
technological capabilities, all of which influence the way
they perceive new information and communication
technologies. It is the role of librarians to introduce new
technologies to library users.“
Rubin 2004
Rabina, Walczyk 2007

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Advantages Sharing Knowledge in the Sense of
Open Innovation
 Using the experience and knowledge of customers
 Increase market acceptance of new products /
services
 Improving the image
 More personalized services
 Early awareness of new (market) trends
 Increased consumption of the entire range of
services
 Increased customer loyalty
 Reduction of development costs
 Reduction of acquisition costs

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Potential Risks
 High coordination effort by the library
 Ignorance (knowledge) of the external innovators
 Innovations of the external innovators based on
their own benefit only
 Lack of involvement of the external innovators
(quantitative)
 Lack of engagement of the external innovators
 Lack of project and time management of the
external innovators
 Lost of know-how, for example to competitors.

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Conclusion
 Modern innovation and knowledge management
requires integrated structures in the sense of open
innovation.
 Social community network structures can promote
innovation and knowledge management in the
sense of open innovation.
 Only by cooperation and integrating external
partners it will be able to develop customized
innovations for the customer in future. Otherwise
libraries will run the risk developing innovations
not wanted and not used by their customers.

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Open Innovation
Survey (2010)

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Survey and Results
 More than 30 institutions were interviewed in
Germany. Libraries and information centers of
various size: state libraries, academic libraries,
public libraries, special libraries and documentation
departments in public ownership.
 The survey was addressed to the head of the
institutions and in almost all cases it was directly
answered by these persons.
 Qualitative expert interviews (ca. 45 min.) on the
basis of a highly structured questionnaire.
Georgy, 2010

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Do you know the term Open Innovation?
Yes 6
No clear idea 3
Only vague idea 10
No 17
Although the term open innovation is not well
known, almost all institutions integrate their
customers to varying degrees into the innovation
processes and are willing to intensify the integration.

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Associations with the term „Open Innovation“

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What motives have customers to play a part in
innovation?
(Multiple answers possible)
Own dissatisfaction with the current range of services 20
Intrinsic (e.g. enjoyment, pride) 18
Social (e.g. membership in a group) 13
Obtaining personal benefits through
implementation and use of innovation 11
Extrinsic (e.g. money) 2

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Word Cloud: What kind of customer integration in
the various stages of the innovation process would
you prefer?

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Do chances or risks rather arise from open
innovation in your opinion?
Only chances 14
Only risks 1
Both 19
I do not know 2

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Risks that may result from open innovation
High coordination effort by the own organization 19
Ignorance (knowledge) of the external innovators 13
Innovations of the external innovators based
on their own benefit only 11
Lack of involvement of the external innovators
(quantitative) 7
Lack of engagement of the external innovators 6
Lack of project and time management of the
external innovators 2
Loss of know-how, for example to competitors 2

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Opportunities that may result from open innovation
Using the experience and knowledge of customers 22
Increase market acceptance of new products / services 18
Improving the own image 15
More personalized services 12
Early awareness of new (market) trends 11
Increased consumption of the entire range of services 10
Increased customer loyalty 8
Reduction of one's own staff needed 0
Reduction of development costs 0
Reduction of acquisition costs 0

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If you would use open innovation, which groups
would be involved? (Multiple answers possible)
Even selected "lead users"
(demanding, critical, advanced customers) 28
Customers with expertise 17
In addition, even non-customers, but with knowledge
in library and / or information science
11
Winner of an idea competition initiated by one´s own 6
Members of other innovation communities,
even without knowledge of the industry 5
No limit 3
Own customers without restriction 2

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Outlook

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Outlook
 Next to once, it is particularly necessary to do
everything for a systematic innovation
management.
 In the consequence changes of the organization
principles possibly require also courageous
individual decisions by e.g. unconventional
structures.
 Increasing competition intensity and a high
dynamics of library services force service
providers to develop solutions and services for the
customer to build up a positive image to the
customer.

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Outlook
 Modern innovation management requires
integrated structures in the sense of open
innovation.
 Social community network structures can promote
innovation management in the sense of open
innovation.
 Only by cooperation and integrating external
partners it will be able to develop innovations
for the customer in future. Otherwise
libraries will run the risk developing innovations
not wanted and used by the customers.

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There´s a lot to be said about
Open Innovation:
„Innovation happens elsewhere“
and
„Everyone together is smarter than your
group alone.“
Bill Joy, Sun Microsystems

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Ursula Georgy
ursula.georgy(at)fh-koeln.de
Thank you for your attention!

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Citations
AUA (2009): Continuous Professional Development Framework for Staff Working in Professional
Services in Higher Education
Bessant, J.; Lehmann, C.; Moeslein, K.M. (2014). Driving Service Productivity. Heidelberg.
Springer
Chesbrough, H.W. (2003): Open Innovation: The new imperative for creating and profiting from
technology, Boston: Harvard Business School Press.
Chesbrough , H.W. (2006). Open Innovation: A New Paradigm for Understanding Industrial
Innovation. In: Chesbrough et al.: Open Innovation: Researching a New Paradigm, Oxford:
Oxford University Press.
Fenn, J. (2010): Hype Cycle 2010: Tips to Optimize Your Technology Portfolio (21. September
2010)
Gartner Inc. (2014): Gartner's 2014 Hype Cycle for Emerging Technologies
http://www.gartner.com/newsroom/id/2819918 (08.11.2014)

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Citations (cont.)
Gartner Inc. (2012). Why Gartner
http://www.gartner.com/technology/why_gartner.jsp (08.11.2014)
Georgy, U. (2010): Erfolg durch Innovation – Strategisches Innovationsmanagement in
Bibliotheken und öffentlichen Informationseinrichtungen. B.I.T.online – Innovativ, Band 29, Dinges
& Frick Wiesbaden
Hansford, M. (2011). The right knowledge management strategy is essential to open innovation.
Mike Hansford´s Blog, 26.04.2011
http://mikehansford.wordpress.com/2011/04/26/the-right-knowledge-management-strategy-is-essential-
to-open-innovation/ (08.11.2014)
Johnson, L., Adams Becker, S., Estrada, V., and Freeman, A. (2014). NMC Horizon Report: 2014
Library Edition. Austin, Texas: The New Media Consortium.
Komninos, N. (2005): Intelligent Innovation. In: Virtual Innovation Environments.
http://www.urenio.org/category/virtual-innovation-environments/ (08.11.2014)
Leifer, R.; O'Connor, G.; Rice, M.; McDermott, C.; Peters. L.; Veryzer, R. (2000). Radical
Innovation: How Mature Companies Can Outsmart Upstarts. Boston: Harvard Business School
Press.
Plieninger, J. (2012). A Singular Approach: One-Person Libraries. May 2012

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Citations (cont.)
Rabina, D.L.; Walczyk, D.J. (2007). Information professionals' attitude toward the adoption of
innovations in everyday life. Information Research 12/4 October 2007.
Rogers, E.M. (2003): Diffusion of Innovations, 5th Edition, New York: Free Press
Rubin, R.E. (2004). Foundations of library and information science. 2nd ed. New York: Neal-
Schuman
Schnell, E. (2008): Libraries Visioning Task Forces, Summer 2008. Innovation Task Force Final
Report
Zack, M.H. (1999). Developing a Knowledge Strategy. California Management Review, Vol. 41,
No. 3, Spring, 1999, pp. 125-145.

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