Designing Digital Service Innovation Hubs: An Ecosystem Perspective on the Challenges and Requirements of SMEs and the Public Sector
Jannika Marie Schäfer, Jonas Liebschner, Polina Rajko, Henrik Cohnen, Nina Lugmair, and Daniel Heinz
This study investigates the design of a Digital Service Innovation Hub (DSIH) to facilitate and orchestrate service innovation for small and medium-sized enterprises (SMEs) and public organizations. Using a design science research approach, the authors conducted 17 expert interviews and focus group validations to analyze challenges and derive specific design requirements. The research aims to create a blueprint for a hub that moves beyond simple networking to actively manage innovation ecosystems.
Problem
Small and medium-sized enterprises (SMEs) and public organizations often struggle to innovate within service ecosystems due to resource constraints, knowledge gaps, and difficulties finding the right partners. Existing Digital Innovation Hubs (DIHs) typically focus on specific technological solutions and matchmaking but fail to provide the comprehensive orchestration needed for sustained service innovation. This gap leaves many organizations unable to leverage the full potential of collaborative innovation.
Outcome
- The study identifies four key challenge areas for SMEs and public organizations: exogenous factors (e.g., market speed, regulations), intraorganizational factors (e.g., resistant culture, outdated systems), knowledge and skill gaps, and partnership difficulties. - It proposes a set of design requirements for Digital Service Innovation Hubs (DSIHs) centered on three core functions: (1) orchestrating actors by facilitating matchmaking, collaboration, and funding opportunities. - (2) Facilitating structured knowledge transfer by sharing best practices, providing tailored content, and creating interorganizational learning formats. - (3) Ensuring effective implementation and provision of the hub itself through user-friendly design, clear operational frameworks, and tangible benefits for participants.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: Today, we're exploring a study titled "Designing Digital Service Innovation Hubs: An Ecosystem Perspective on the Challenges and Requirements of SMEs and the Public Sector." Host: It’s all about creating a new type of digital hub to help small and medium-sized businesses and public organizations innovate together, moving beyond simple networking to actively manage the entire innovation process. With me to break it down is our analyst, Alex Ian Sutherland. Welcome, Alex. Expert: Great to be here, Anna. Host: Alex, let's start with the big picture. Why is this topic so important right now? What is the real-world problem this study is trying to solve? Expert: The core problem is that smaller businesses and public sector organizations are often left behind when it comes to innovation. They have great ideas but struggle with resource constraints, knowledge gaps, and simply finding the right partners to collaborate with. Expert: Existing platforms, often called Digital Innovation Hubs, tend to focus on selling a specific technology or just acting as a simple matchmaking service. They don't provide the hands-on guidance, or 'orchestration,' needed to see a complex service innovation through from start to finish. Host: So there's a gap between simply connecting people and actually helping them succeed together. How did the researchers investigate this? What was their approach? Expert: They went directly to the source. The research team conducted 17 in-depth, semi-structured interviews with leaders and experts from a diverse range of small and medium-sized enterprises and public institutions. This allowed them to get a rich, real-world understanding of the specific barriers these organizations face every day. Host: And after speaking with all these experts, what were the main challenges they uncovered? Expert: The study organized the challenges into four key areas. First, 'exogenous factors' – things outside their control, like the incredible speed of technological change and regulations that haven't caught up with technology. Expert: Second were 'intraorganizational factors'. This is the internal friction: an organizational culture that resists change, outdated IT systems, and the constant struggle to secure funding for new ideas. One person even mentioned colleagues saying, "I am two years away from retirement. Why should I change anything?" Host: That’s a powerful and very real obstacle. What were the other two areas? Expert: The third was a clear gap in knowledge and skills, especially around digital competencies and having a structured process for innovation. And fourth, and this is a big one, were partnership difficulties. Finding the right collaborator is often, as one interviewee put it, "unsystematic and based on coincidences." Host: That sounds like a complex web of problems. So how does this new concept, the Digital Service Innovation Hub or DSIH, propose to fix this? Expert: The study lays out a blueprint for a DSIH based on three core functions. First, it must be an active 'orchestrator.' This means using smart tools, maybe even AI-based matching, to not just find partners but to actively facilitate collaboration and connect projects to funding opportunities. Expert: Second, it has to facilitate structured knowledge transfer. This isn't just a library of articles. It’s about sharing success stories, providing tailored, practical content, and creating forums where organizations can learn from each other's wins and losses. Expert: And finally, the hub itself must be designed for its users. It has to be intuitive, offer clear benefits, and provide support. The goal is to make participation easy and obviously valuable. Host: This is what our listeners really want to know, Alex. Why does this matter for business? What are the practical takeaways for a business professional tuning in right now? Expert: I think there are three key takeaways. First, innovation today is a team sport, especially for SMEs. You can't do it all alone. This study provides a model for how to create and engage with structured ecosystems that pool resources, knowledge, and risk. Expert: Second, leaders need to look beyond simple networking. A contact list isn't an innovation strategy. The real value comes from an 'orchestrator'—a central hub that actively manages collaboration and helps navigate complexity. If you're looking to partner, seek out these more structured ecosystems. Expert: And finally, for any industry associations or regional development agencies listening, this study is a practical guide. It outlines the specific design requirements needed to build a hub that actually works—one that creates tangible value by connecting partners, sharing relevant knowledge, and providing a clear framework for success. Host: A fantastic summary. So, to recap, small and medium-sized businesses and public organizations face significant hurdles to innovation, but a well-designed Digital Service Innovation Hub can act as a crucial orchestrator, connecting partners, sharing knowledge, and driving real progress. Host: Alex Ian Sutherland, thank you so much for your insights. Expert: My pleasure, Anna. Host: And thank you for listening to A.I.S. Insights — powered by Living Knowledge. Join us next time as we decode another key piece of research for your business.
service innovation, ecosystem, innovation hubs, SMEs, public sector
