Value creating services supporting smart specialisation

In designing our S3 we have adopted the approach to innovation advocated by former CEO of Apple, Steve Jobs: we start with customer experiences and then go back towards technology, and not the other way around. This builds on our region's strong research capabilities related to service innovation, service design and servitisation.

Servitisation is a process aimed at gaining new insights into users and how to best support their value-creation processes. Radically new services possess a transformational power to convert value chains. This requires deep insights into the behaviour and values of the users, as well as the situations in which they live and act.

Several examples of servitisation show that it cuts across Värmland's S3 priorities:

• 'Digitalisation of Welfare Services': The Service Research Centre at Karlstad University plays a key role in disseminating knowledge on user needs, customized services and the streamlining of services with higher quality.
• Primary health services: Experio Lab involves staff, patients and families to work together with service designers to create value in people's everyday lives.
• 'Forest Based Bioeconomy': The SP research institute is forming a service innovation lab for companies to develop new business models and other service innovations for bio based products.

To sum up, our S3 was formed in accordance with a service design methodology. During the process it was clear that there was a demand within all areas of specialisation for developing new business models, service innovations and ultimately customer values. Therefore service innovation has become a horizontal, enabling S3 priority in Värmland.

The line between production of services and goods disappears slowly but surely out and create the need for new knowledge and new ways of thinking in organizations and companies. (Tomas Riste, Regional Commissioner)