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Entrepreneurship and Services ISBN 978-952-60-3572-7 (Pbk) ISBN 978-952-60-3573-4 (PDF) Yrjö Neuvo & Sami Ylönen (eds.) MULTIDISCIPLINARY INSTITUTE OF DIGITALISATION AND ENERGY (MIDE) Bit Bang III Entrepreneurship and Services ISBN 978-952-60-3572-7 (pbk) ISBN 978-952-60-3573-4 (PDF) Layout: Mari Soini Assisting editor: Elina Karvonen Cover design: Harri Heikkilä Printed by: Unigrafia, Helsinki 2011 Table of Contents ForEworD 4 rEFLECTIoNS oN BIT BANg 3 FroM THE STUDENTS 5 1 ENTrEPrENEUrSHIP 7 1.1 Infopreneur - From Nomads to Knowmads 8 1.2 Augmented Entrepreneurship: Enhancing Business by Enhancing reality 32 1.3 Discovering opportunities for Sustainable Entrepreneurship 60 1.4 Staying Small is good for You: Scenarios for Small Companies in global Niche Markets 81 2 SErvices 101 2.1 What is Service research? Present Status and Future Directions 102 2.2 Attackers’ Advantage: Introducing Discontinuous Service Innovations to the Market 122 2.3 Service Innovation Based on Maslow’s Hierarchy of Needs 148 2.4 Dynamic Service Design in Healthcare 172 Appendices 193 1 The Bit Bang People 194 2 Bit Bang guest Lecturers Fall 2010 – Spring 2011 196 3 Course Literature 196 4 Study Program in India 197 5 India Study Tour reports 200 6 OnService Business Simulation game 212 Foreword Bit Bang – Entrepreneurship and Services is the third multidisciplinary post-graduate course for doctoral students at Aalto University. Altogether 24 students were selected from the three units of Aalto University: Helsinki University of Technology, Helsinki School of Economics, and the University of Art and Design Helsinki. Bit Bang is a part of the MIDE (Multidisciplinary Institute of Digitalisation and Energy) research program, which the Helsinki University of Technology started as part of its centennial celebration of university education and research. Professor Yrjö Neuvo, MIDE program leader, Nokia’s former Chief Technology Officer, is the force behind this course. During the 2010–2011 semesters, the specific learning objectives of the Bit Bang course were entrepreneurship and service business. During the fall semester, the stu- dents produced reports on the following four topics: Infopreneur – from nomads to knowmads; Augmented entrepreneurship: Enhancing business by enhancing reality; Discovering opportunities for sustainable entrepreneurship; and Staying small is good for you: Scenarios for small companies in global niche markets. The textbooks for the fall semester were Bit Bang II – Energising Innovation, Innovating Energy by Yrjö Neuvo & Sami Ylönen, eds. (2010) and Entrepreneurship – Successfully Launching New Ventures by Bruce R. Barringer & R. Duane Ireland (2010). Distinguished guest lecturers from industry and academia complemented the textbook material. The course also had a five-week (five rounds) OnService business simulation game, which was designed to give students the opportunity to practice with the key success factors that are relevant to any service business in small and medium-size enterprise environments. In the spring period, the focus was on the key characteristics of the service busi- ness. The spring team work topics were: What is service research? Present status and future directions; Attackers’ advantage: Introducing discontinuous service innovations to the market; Service innovation based on Maslow’s hierarchy of needs; and Dy- namic service design in healthcare. The textbook for the spring semester was Service Innovation – How to Go from Customer Needs to Breakthrough Services by Lance A. Bettencourt (2010). In addition to the lectures and textbooks, the Bit Bang group made an intensive study tour of the Bangalore and Delhi areas. The essential learning aims of the course were team working, multidisciplinary collaboration, global perspective, industry and business foresight, and scenario build- ing. The passing the Bit Bang course required active attendance at the lectures and seminars as well as writing this joint publication based on the fall and spring group works. The texts were written by doctoral students presenting their views. We want to give our special thanks to Elina Karvonen for her devotion and hands-on support of this ambitious project. We warmly wish you all pleasant and eye-opening moments with this book! Yrjö Neuvo & Sami Ylönen 4 Foreword Reflections on Bit Bang 3 from the students We knew this was going to be something different. Bit Bang 3 would bring together graduate students with an international background from all the Aalto schools. We would work in groups and deliver assignments. We would listen to leaders and ex- perts and learn from their experience. And we would take a one week study tour abroad. These ingredients definitely promised an intriguing start. But all this became special as Yrjö and Sami welcomed us to share our thoughts, background and personality with each other from day one. In this way, we were invited to explore different perspectives of science, and practice our personal char- acteristics with an open mind. This brought each of us on the fringe of something new. For one, this was courage to pursue new goals, and for the other, it provided collegial support in the midst of academic pressures. In addition to these personal reflections, it made us challenge our beliefs, discover new ways of thinking, and enjoy our behavioural and cultural richness. So, what truly made the difference was this open, innovative and supportive spirit. It has been a privilege to be part of this journey. Although our paths now con- tinue in many different directions, we will hopefully be able to spread the same spirit around us wherever we go. By these words, we invite you to join in. On behalf of the Bit Bang 3 students, Leena Sivill Reflections on Bit Bang 3 from the students 5 1 Entrepreneurship 1.1 Infopreneur - From Nomads to Knowmads Parth Amin1, Harri Heikkilä2, Tapani Hyvämäki3, Anna Korolyuk4, Juuso Parkkinen5, Zhe Zhang6, tutor Cathy Nangini7 1Aalto University School of Electrical Engineering, Department of Communications and Networking, PO Box 13000, FI-00076 Aalto, Finland 2Aalto University School of Art and Design, Department of Media, PO Box 31000, FI-00076 Aalto, Finland 3Aalto University School of Electrical Engineering, Department of Automation and Systems Technology, PO Box 15500, FI-00076 Aalto, Finland 4Aalto University School of Science, Department of Applied Physics, PO Box 15100, FI-00076 Aalto, Finland 5Aalto University School of Science, Department of Information and Computer Science, PO Box 15400, FI-00076 Aalto, Finland 6Aalto University School of Engineering, Department of Surveying, PO Box 11200, FI-00076 Aalto, Finland 7Aalto University School of Science, Low Temperature Laboratory, PO Box 15100, FI-00076 Aalto, Finland Abstract The rapidly growing amount of available data and information has resulted in the need to process and filter relevant pieces of these data. This is exactly what an in- fopreneur does: she or he takes and combines existing data sources, adds value by refining the information into applicable knowledge, and presents it to the user in an understandable way. In this chapter, we cover important concepts related to an info- preneur, such as the information value chain and possible business models. We also 8 Infopreneur - From Nomads to Knowmads discuss related sources of innovation, such as data mining and information visualiza- tion, and present a few promising opportunities for an infopreneur. Keywords: Infopreneurship, information value chain, information visualization. 1 Introduction We live in an era of exciting new possibilities stemming from recent developments in information technologies, such as fast mobile Internet connections. As a result, however, we are facing an information overflow: it is practically impossible to com- prehend all of the available information. The need to effectively filter and clearly convey information based on user interests has thus become evident, but current information products and services are far from satisfactory in this sense. This creates a promising opportunity for infopreneurs - a new form of entrepreneurs who create value by gradually refining data into information and knowledge relevant to the user. As an example of a process in which large amounts of available information are gradually refined and made more relevant for the user, consider a person who wants to find an Asian restaurant in the Töölö area of Helsinki. Before the Internet, a typi- cal approach would have been to browse a local company catalogue or a restaurant guide for restaurants located in Töölö or those with Asian cuisine. This involved a lot of manual work in browsing through existing lists and looking for relevant res- taurants. The development of the Internet, and especially Web 2.0 applications, has made this search process much easier. One can, for instance, search for “Asian restaurant Töölö” using Google, or use one of many restaurant services where the visible choices can be filtered based on the desired location and cuisine. The Internet has also made possible the delivery of related information, such as customer reviews and menus, which are all relevant for the user’s restaurant choice. Mobile devices, especially those with an Internet connection, have made even better services for users possible. Cus- tomers can, for example, search for nearby restaurants based on their current loca- tion, reducing the need for planning beforehand. User Generated Content (UGC) is a pre-eminent expanding trend in information services. In this article, we will investigate how information is extracted from data from an infopreneurship point of
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