Rethinking Service Logics in Forest-based Bioeconomy

Transcription

1 Rethinking Service Logics in Forest-based Bioeconomy Towards a Sustainable Bioeconomy Innovative Methods and Solutions for the Agriculture and Forest Sectors CASTLE Conference, October 21, 2015 Session 6: Economic and social challenges for the bioeconomy Päivi Pelli

2 Rethinking Service Logics in Forest-based Bioeconomy Research questions 1) How are services taken on board in the bioeconomy strategies and the forest-based sector strategies and programmes at European level? 2) What kind of service logics do the strategies represent? 3) [How are services understood at company level, and what kind of developments are underway]

3 Structure of the presentation I. Conceptual framework II. Data and methods III. Results of the document analysis IV. Discussion on Service logics

4 Three angles to how services are taken on board in strategies: 1) services activities to support and provide input to production tesenergyfacade.com

5 Three angles to how services are taken on board in strategies: 1) services activities to support and provide input to production 2) services outputs to extend and add on the physical products

6 Three angles to how services are taken on board in strategies: 1) services activities to support and provide input to production 2) services outputs to extend and add on the physical products, and 3) service as process to define and (co)create value.

7 Conceptual framework 1: services and service Three angles to how services are taken on board in strategies: Manufacturing logic (studies by e.g. Vandermerwe and Rada, 1988; Oliva and Kallenberg, 2003) 1) services activities to support and provide input to production 2) services outputs to extend and add on the physical products, and Service (dominant) logic (e.g. Grönroos, 1990; Håkansson and Snehota, 1989; Vargo and Lusch, 2004; 2008) 3) service as process to define and (co)create value. Changes in how value is defined, created and distributed/shared

8 Conceptual framework 2: service logics Service-Dominant Logic (Vargo and Lusch, 2004; 2008; Lusch and Vargo, 2014) as an analytical framework to assess what is the service logics: Goods-Dominant Logic What is exchanged? Goods and services - Service Service-Dominant Logic What is the role of key actors? What resources are described decisive in value creation? How markets are defined? Producer / service provider is the active contributor Resources are assets (possessing) - Producer and customer / user, beneficiary is an active contributor - Resources become in interaction (sharing) Markets á priori / out there - Markets are created, institutionalized

9 Data sources: bioeconomy strategies and forest-based sector strategies and programmes at European level

10 Document analysis results 1 How services are taken on board in the bioeconomy strategies and the forest-based sector strategies and programmes at European level? EU bioeconomy strategy (incl. bioeconomy ETPs; PPP BBI, EIP AGRI) EU forest strategy (incl. F-BI); UNECE/FAO; FE Services activities: Support Services services business x x Service outputs: services embedded in product x (x) Forest-based sector (FTP, CEPI) x (x) (x) x Other European Innovation Partnerships, public-private partnerships (SPIRE, E2B, EFFRA ) x x (x) x

11 Document analysis results 2 What kind of service logics the strategies represent? What is exchanged: biomass, products (processes) What roles: supply-chain view with value added to products through the successive stages; knowledge-base in production; triple helix What resources crucial: biomass and renewable materials; knowledge base, new technologies, skills How markets are defined: markets out there ; new markets supported with creation of market conditions I.e. customers and users are not perceived as value co-creators but remain passive recipients for the company value propositions; also innovation is linear and incremental mainly

12 Emerging services in value-added chains Add services to the physical product Improve resource efficiency Extend the product with maintenance, after sales etc. services with knowledge-intensive x services Optimize supply chain More efficiency Move downstream in the value chain Acquire assets in R&D, design, IPR, brand Higher value-added products and services 12

13 Emerging value co-creation in a systems view Service as process: Value co-creation in interactions by integration of resources with customers, users, beneficiaries and wider stakeholder network. x EXAMPLE brand owners: learn about logics in the use industries EXAMPLE new forest owners: learn about logics of the nextgeneration forest owners

14 To conclude 1. Bioeconomy strategies at EU level Main focus on biomass Services are in the radar of other forest-based sector partnership. Biomass-producing sectors: service to society 2. Service logics Linear value chains perspective: services as a means to process optimization and efficiency BUT need to look with a wider horizon on technological change and its impact on operations at all levels (use) Systems view: service as process to rethink value creation, allow ambiguity which may also lead to radical innovation, new uses and ways of operating BUT need to include natural ecosystems (public good)

15 Thank you!

16 References Bettis, R.A., Prahalad, C.K. (1995) The Dominant Logic: Retrospective and Extension. Strategic Management Journal, 16(1), 5-14 Grönroos, C. (1990) Relationship approach to marketing in service contexts: The marketing and organizational behavior interface. Journal of Business Research, 20(1), Håkansson, H., Snehota, I. (1989) No business is an island: The network concept of business strategy. Scandinavian Journal of Management. 5(3), Hetemäki L., Hänninen, R., The economic impact of the Finnish forest-based sector now and in the future. The Finnish Economic Journal. 2/2013, (In Finnish) Hetemäki (ed.) (2014) Future of the European Forest-Based Sector: Structural Changes Towards Bioeconomy. What Science Can Tell Us 6, European Forest Institute. Lusch, R.F., Vargo, S.L. (2014) ServiceDominant Logic: Premises, Perspectives, Possibilities. Cambridge University Press: Cambridge, U.K. 225 p. Näyhä, A., Pelli, P., Hetemäki L. (2014) Forest-based services outlook in Hetemäki, L. (Ed.) (2014) Future of the European Forest-Based Sector: Structural Changes Towards Bioeconomy. What Science Can Tell Us 6, Näyhä, A., Pelli, P., Hetemäki L. (2015) Services in the forest-based sector unexplored futures, Foresight, 17 (4), Normann, R. (2001) Reframing Business: When the Map Changes the Landscape. John Wiley and Sons. Normann, R., Ramírez, R. (1993) From value chain to value constellation: Designing interactive strategy. Harvard Business Review. 71(4), Oliva, R., Kallenberg, R. (2003) Managing the transition from products to services. International Journal of Service Industry Management 14(2): Prahalad, C.K. (2004) The Blinders of Dominant Logic. Long Range Planning 37 (2004), Toppinen A., Wan M., Lähtinen K. (2013) Strategic orientations in the global forest sector. p In: Hansen, E., Panwar, R. and Vlosky, R. (ed.) The Global Forest Sector: Changes, Practices, and Prospects. CRC Press. Vandermerwe, S., Rada, J., Servitization of business: Adding value by adding services. European Management Journal. 6(4), Vargo, S.L., Lusch, R.F., Evolving to a new dominant logic for marketing. Journal of Marketing. 68, Vargo, S.L., Lusch, R.F., Servicedominant logic: Continuing the evolution. Journal of the Academy of Marketing Science. 36(1), Vargo, S.L., Lusch, R.F., It's all B2B... and beyond: Toward a systems perspective of the market. Industrial Marketing Management. 40, For further information: uef.fi

17 Reviewed documents EU bioeconomy strategy and action plan: EC (2002) Life Sciences and Biotechnology: A strategy for Europe (COM (2002)27). EC (2005) New perspectives on the Knowledge-Based Bio-economy. Conference report. EC (2009) Taking bio-based from promise to market. Measures to promote the market introduction of innovative bio-based products. EC (2010) The Knowledge-Based Bio-Economy (KBBE) in Europe: Achievements and challenges. Conference report. EC (2011) Bio-based Economy for Europe: State of Play and Future Potential Parts 1 and 2. EC (2012) Innovating for Sustainable Growth: A Bioeconomy for Europe (COM(2012) 60). EC (2012) Staff Working Document Accompanying the Document Innovating for Sustainable Growth: A Bioeconomy for Europe. Brussels, EC (2014) Where next for the European bioeconomy? The latest thinking from the European Bioeconomy Panel and the Standing Committee on Agricultural Research Strategic Working Group (SCAR). European Parliament (2013) Report on innovating for sustainable growth: a bioeconomy for Europe. CoR (2013) Opinion of the Committee of the Regions on Innovating for sustainable growth: a bioeconomy for Europe (2013/C 17/09). German Presidency (2007) En Route to the Knowledge-Based Bio-Economy; German Presidency of the Council of the European Union. Forest-based sector at European level: CEPI (2011) Unfolding the future - The Forest Fibre Industry 2050 Roadmap to a low-carbon bio-economy. EC (2013) A new EU forest strategy: for forests and the forest-based sector. (COM(2013) 659) with Staff Working Document (SWD(2013) 342) and A Blueprint for the EU forest-based industries (SWD(2013) 343) FOREST EUROPE (2011) European Forests targets Oslo Ministerial conference decision. FOREST EUROPE (2014) Green Economy and Social Aspects of Sustainable Forest Management. Workshop report, FTP (2005) Vision Innovative and sustainable use of forest resources. A Technology Platform initiative by the European Forest-based Sector. FTP (2006) A Strategic Research Agenda for Innovation, Competitiveness and Quality of Life. with Annex: Extended Descriptions of Research Areas. Forest-based Sector Technology Platform. FTP (2013) Horizons Vision 2030 for the European forest-based sector. Renewed FTP Vision Forest-based Sector Technology Platform FTP. FTP (2013) Revised FTP Strategic Research and Innovation Agenda for 2020 with Annex: Research and Innovation Areas. UNECE/FAO (2014) Rovaniemi Action Plan for Forest sector in a green economy. UNECE/FAO Forestry and Timber Section. GENEVA TIMBER AND FOREST STUDY PAPER 35. Cross-sectoral with reference to forest-based sector: A.SPIRE asbl. (2013) Sustainable Process Industry through Resource and energy Efficiency Roadmap BECOTEPS (2011). The European Bioeconomy in 2030: Delivering Sustainable Growth by Addressing the Grand Societal Challenges. Bio-Economy Technology Platforms BECOTEPS. BIC (2012) The Bio-based Industries VISION: Accelerating innovation and market uptake of bio-based products. Bio-based Industries Consortium BIC. July BIC (2013) Strategic Innovation and Research Agenda (SIRA) Bio-based and Renewable Industries for Development and Growth in Europe. A Public-Private Partnership on Bio-based Industries. Bio-based Industries Consortium BIC. March EC (2012) European Innovation Partnership (EIP) on Agricultural Productivity and Sustainability (COM(2012) 79) EC (2012) European Innovation Partnership (EIP) on Raw Materials (COM(2012) 82) EC (2012) European Innovation Partnership (EIP) on Water (COM(2012) 216) EC (2013) Energy Efficient Buildings. Multi-annual roadmap for the contractual PPP under Horizon 2020 prepared by Energy Efficient Buildings (E2B) and European Construction Technology Platform (ECTP). Directorate-General for Research and Innovation. EC (2013) Factories of the future. Multi-annual roadmap for the contractual PPP under Horizon 2020 prepared by European Factories of the Future Research Association (EFFRA). Directorate-General for Research and Innovation. Star-COLIBRI (2011) Joint European Biorefinery Vision for Star-COLIBRI Strategic Targets for 2020 Collaboration Initiative on Biorefineries.

18 Annex Service-Dominant Logic SDL (Vargo and Lusch 2004; 2008; 2011; Lusch and Vargo 2014) Instead of linear value added chains continuous configurations, de/re-configurations (Normann and Ramirez, 1993; Normann, 2001); value networks and systems Instead of value added in production value co-produced with customer (Prahalad, 2004) / co-created with customers and beneficiaries Instead of resources as assets primacy in knowledge and skills, integration of resources in interactions; resources become in use Instead of controlled and managed processes adaptive systems (Bettis and Prahalad, 1995), creation and institutionalization of markets