Service Innovation through Data Ecosystems – Designing a Recombinant Method
Philipp Hansmeier, Philipp zur Heiden, and Daniel Beverungen
This study designs a new method, RE-SIDE (recombinant service innovation through data ecosystems), to guide service innovation within complex, multi-actor data environments. Using a design science research approach, the paper develops and applies a framework that accounts for the broader repercussions of service system changes at an ecosystem level, demonstrated through an innovative service enabled by a cultural data space.
Problem
Traditional methods for service innovation are designed for simple systems, typically involving just a provider and a customer. These methods are inadequate for today's complex 'service ecosystems,' which are driven by shared data spaces and involve numerous interconnected actors. There is a lack of clear, actionable methods for companies to navigate this complexity and design new services effectively at an ecosystem level.
Outcome
- The study develops the RE-SIDE method, a new framework specifically for designing services within complex data ecosystems. - The method extends existing service engineering standards by adding two critical phases: an 'ecosystem analysis phase' for identifying partners and opportunities, and an 'ecosystem transformation phase' for adapting to ongoing changes. - It provides businesses with a structured process to analyze the broader ecosystem, understand their own role, and systematically co-create value with other actors. - The paper demonstrates the method's real-world applicability by designing a 'Culture Wallet' service, which uses shared data from cultural institutions to offer personalized recommendations and rewards to users.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. In today's hyper-connected world, innovation rarely happens in a vacuum. It happens in complex networks of partners, customers, and data. So how can businesses navigate this? Today we're looking at a fascinating study titled "Service Innovation through Data Ecosystems – Designing a Recombinant Method".
Host: It proposes a new method to guide service innovation in these complex, multi-company data environments. Here to break it all down for us is our analyst, Alex Ian Sutherland. Welcome, Alex.
Expert: Great to be here, Anna.
Host: Alex, let's start with the big picture. Why did we need a new method for service innovation in the first place? What problem is this study trying to solve?
Expert: The core problem is that most traditional methods for creating new services are outdated. They were designed for a simple, two-way relationship: a single company providing a service to a single customer.
Host: Like a coffee shop selling a latte.
Expert: Exactly. But today, we operate in what the study calls 'service ecosystems'. Think about the connected car industry or smart agriculture. These aren't simple transactions. You have dozens of companies—carmakers, software developers, data providers, insurance firms—all interconnected and sharing data to create value.
Host: And the old rulebook doesn't apply to that complex game.
Expert: Precisely. The old methods fall short. They don't give companies a clear, actionable roadmap for how to find partners, leverage shared data, and design new services in this crowded and constantly changing environment. There was a real gap between the potential of these data ecosystems and the ability of businesses to innovate within them.
Host: So, how did the researchers approach tackling this challenge?
Expert: They used an approach called design science research. In simple terms, they didn't just study the problem from afar; they rolled up their sleeves and built a practical solution. They designed and developed a new method—a tangible framework that companies can actually use to engineer new services at an ecosystem level.
Host: And that new method is called RE-SIDE. Tell us about the key findings. What makes this framework different?
Expert: The biggest innovation in the RE-SIDE method is that it adds two critical new phases to existing service design processes. The first is the 'Ecosystem Analysis Phase'.
Host: What does that involve?
Expert: It's essentially a strategic reconnaissance mission. Before you even start designing a service, the method tells you to stop and map the entire landscape. Who are the other actors? What data do they have? Where are the opportunities for collaboration? It forces you to look beyond your own four walls and understand the entire playing field.
Host: That makes a lot of sense. And what’s the second new phase?
Expert: That's the 'Ecosystem Transformation Phase'. This acknowledges that these ecosystems are alive—they're constantly evolving. New partners join, new data becomes available, customer needs change. This phase is a continuous process of monitoring, adapting, and transforming your service to stay relevant and aligned with the ecosystem's evolution.
Host: So it's not a one-and-done process. It builds in agility.
Expert: Exactly. And the study demonstrated how this works with a fantastic real-world example: a service they call the 'Culture Wallet'.
Host: A wallet for culture? I’m intrigued.
Expert: Imagine an app on your phone. Multiple cultural institutions—museums, theaters, concert venues—all agree to share their event data into a common, secure data space. The 'Culture Wallet' app uses this shared data to give you personalized recommendations for events near you. It could also act as a digital loyalty card, rewarding you with discounts for attending multiple venues.
Host: I can see how that couldn't be built by one institution alone.
Expert: Absolutely. To create the Culture Wallet, a developer would have to use the RE-SIDE method. They'd first analyze the ecosystem of cultural partners, then select the right ones to collaborate with, and finally, be ready to adapt as new venues join or the available data changes over time.
Host: This is incredibly practical. Let's get to the bottom line, Alex. Why does this matter for business leaders listening today? What are the key takeaways?
Expert: I see three major takeaways. First, it provides a blueprint for shifting from pure competition to collaborative innovation. In a data ecosystem, your greatest opportunities may come from partnering with others, and this method shows you how to do it strategically.
Host: So it’s a guide to co-creation.
Expert: Yes. Second, it de-risks innovation. By forcing you to do that ecosystem analysis upfront, you're making much more informed decisions about where to invest your resources, who to partner with, and what services are actually viable. It reduces the guesswork.
Host: And the third takeaway?
Expert: It's about building for resilience. That 'Ecosystem Transformation' phase is the key to future-proofing your services. Businesses that build adaptability into their DNA from the start are the ones that will not only survive but thrive in today's dynamic markets.
Host: So it’s about having a strategic map to not just enter, but successfully navigate, these complex new business environments.
Expert: That's the perfect way to put it.
Host: To sum it up for our listeners: traditional service innovation models are insufficient for today's interconnected data ecosystems. This study delivers the RE-SIDE method, a practical framework that adds crucial ecosystem analysis and transformation phases. It gives businesses a clear process to collaborate, innovate, and adapt in a constantly changing world.
Host: Alex, thank you so much for these powerful insights.
Expert: My pleasure, Anna.
Host: And thanks to all of you for tuning into A.I.S. Insights — powered by Living Knowledge. Join us next time as we decode another key study shaping the future of business and technology.
Service Ecosystem, Data Ecosystem, Data Space, Service Engineering, Design Science Research