A Calculus for Service Innovation

Innovation in the services area - especially in the electronic services (e-services) domain - can be characterized by six decision-oriented attributes: decision-driven, information-based, real-time, continuously-adaptive, customer- centric and computationally-intensive. These attributes constitute the decision informatics paradigm. In turn, decision informatics is supported by information and decision technologies and based on the disciplines of data fusion/analysis, decision modeling and systems engineering. Out of the nine major innovation enablers in the services area (i.e., decision informatics, software algorithms, automation, telecommunication, collaboration, standardization, customization, organization, and globalization), decision informatics is shown to be a necessary enabler. Furthermore, four innovation drivers (i.e., collaboration, customization, integration and adaptation) are identified; all four are directed at empowering the individual - that is, at recognizing that the individual can, respectively, contribute in a collaborative situation, receive customized or personalized attention, access an integrated system or process, and obtain adaptive real-time or just-in-time input. By employing this services innovation calculus, white spaces are identified for possible future innovations; they include those that can mitigate the unforeseen consequences or abuses of earlier innovations, safeguard our rights to privacy, protect us from the always-on, interconnected world, provide us with an authoritative search engine, and generate a GDP metric that can adequately measure the growing knowledge economy, one driven by intangible ideas and services innovation.