Petter Gottschalk’s research while affiliated with BI Norwegian Business School and other places

In this chapter, the authors explore and propose the fundamental principles for designing a strategy-aligned service governance model, which is closely related to IT governance. Both IT governance and service governance can only be operationalized successfully by strong a C-level executive leadership. The role of a CIO has a good positional-fit with the enterprise-wide focus of the governance purpose. This chapter addresses the CIO’s enterprise-wide leadership role, including ownership and utilization of the governance process to create business value and competitive advantage.

A general understanding of business firms is required in order to be able to develop business and IT strategies. This chapter presents the resource-based theory of the firm, the knowledge-based theory of the firm, and the activity-based theory of the firm. With the widespread adoption of Internet technologies by firms, e-business models have emerged as a significant mechanism for service business. Both business and e-business models represent the commercial implementations of the business strategies chosen by the firms. This chapter, therefore, reviews the firm with a service orientation in terms of its value configuration, business model, and e-business model.

The purpose of this chapter is to explain the basic principles, theories, process, and management of service innovation. The authors first review the basic set of customer-centric principles of service innovation. Next, the authors review the theories behind service innovation typology. The following sections focus on the service innovation process, new service development, service engineering, customer participation, and lifecycle management. Then the authors select a couple of case examples from the literature to illustrate how the interrelated core concepts of knowledge, dynamic capabilities, and service innovation that have been covered in the previous and current chapters are utilized in different types of firms.

In this chapter, the authors first define a knowledge organization in the context of the knowledge-based view of the firm described in chapter 1. As business intelligence has emerged as a key pillar of highly competitive knowledge organizations, its use as a foundation for knowledge creation and application in service business is then discussed. This is followed by a discussion of the evolutionary growth model of knowledge organization, highlighting that superior innovative capabilities are closely linked to learning organization, the most mature level of knowledge organization. The second part of this chapter then describes the interrelationships between knowledge and core capabilities or competencies. Finally, the authors review example characteristics of knowledge intensive business services to prepare the groundwork for chapter 4, which will treat the basic service principles and theories in detail.

The purpose of this chapter is to explain the concepts and principles of service science, management and engineering, and the basic constructs of innovative service strategies. It highlights why service is increasingly being conceptualized as a process rather than a unit of production output. The chapter first describes the evolving service perspectives and their associated characteristics and principles. It then addresses the service “implementation” aspects and describes the definitions and interrelationships of service concept, design, and strategies to create differentiating customer experience.

This chapter explores the underlying enterprise-wide strategic and operational fitness issues holistically from an organizational processes standpoint. It explains the theories and practices of enterprise or organizational processes and how enterprise architecture can be used to ensure the strategic and operational alignment of systems, processes, and strategies.

This chapter explains the theory behind and the practice of strategic program planning and program management. The authors first describe two contrasting approaches to IT strategic planning, namely: the Cassidy Model and the Spewak Enterprise Architecture Planning (EAP) methodology. The authors then describe the principles and methods for enterprise architecture-driven strategic planning and the related IT project portfolio management principles. They conclude the chapter by explaining the basic principles of product/service portfolio strategic planning by describing a couple of recent approaches in the literature.

In this chapter, the authors discuss the critical success factors of IT strategy holistically across four dimensions of the strategic management process from strategy formulation to planning to execution and to value delivery monitoring, end-to-end. The most basic requirement for the success is that IT must be regarded as being part of the business, devoid of the “us” vs. “them” chasm (separating IT from the business) found in most traditional organizations where IT is viewed as a subservient role performing basically a “back office” function. Case examples are used to illustrate the alignment processes and the resulting business value accrued. Because IT leaders have to manage alignment in all four dimensions in order to maximize the strategic value of information technology deployment, the chapter also examines the evolutionary CIO leadership roles in value creation.

This chapter describes the principles and methods for producing a business-aligned IT strategy to enable value co-creation with customers. In particular, the authors detail the alignment method and the underlying dynamic process of alignment as they form the critical disciplines that practitioners must master. The chapter also describes the Strategic Alignment Maturity (SAM) model by which management can gauge and continuously improve their organization’s strategic alignment capabilities. Finally, the authors discuss in detail the various methods for IT-enabled value creation.

To leverage knowledge management for business innovation, IT managers must first understand the basic principles, theories, and practices of knowledge management. Next, they must understand how knowledge management will contribute to innovation. This chapter addresses both topics to help make IT managers become IT innovators.