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Development of total innovation management approach for service innovation

Stronger global completion provides an impetus for servitization in global industrial companies, that is, to shift from selling products to selling integrated products and services. To increase efficiency in service innovation there is a need to reorganize innovation system and build suitable capabilities, something which require significant organizational transformation. The purpose of the paper is to describe a Scandinavian effort to develop a Total Innovation Management (TIM) approach to service innovation. Firstly, a theoretical framework for innovation system for service is developed. Secondly, through a case illustration it is shown that servitization in practice imply complex dynamics of many factors, forces and agency which both works towards and restricts servitization. To deal with this dynamic there is a need for a TIM approach.