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Economic Analysis: Theory and Practice
 

Key components of innovation growth of service industries

Vol. 13, Iss. 47, DECEMBER 2014

Available online: 12 December 2014

Subject Heading: INNOVATION AND INVESTMENT

JEL Classification: 

Pages: 2-13

Mannapov R.G. Ufa State University of Economics and Services, Ufa, Republic of Bashkortostan, Russian Federation
mannapovrais@mail.ru

Importance Constantly changing factors of social development and the growing importance of new market realities require expansion and intensification of innovative processes in the area of services. This is becoming a particularly urgent implementation of detailed analytical work in service organizations, which is not everywhere and not always carried out.
     Objectives The aim of this study is to develop practical recommendations for the innovative development of service organizations' activities on the basis of an analytical approach.
     Methods In accordance with the systematic approach, I applied a method of system structuring of key internal components of the service organization, to analyze and identify opportunities for improvement. Also I used the method of analogy through the study of current trends and the experience of the development of service activities in foreign countries covered in the writings of a number of researchers (K. Prahalad, M. Krishnan, M. Porter, C. Christensen, H. Chesbrough, etc.). I also considered the potential usefulness and limitations of their usage in domestic companies.
     Results The article reveals the specific processes, trends, new phenomena taking place in the services sector in the current environment. I have identified problem areas and objective conditions of service companies in the system of economic analysis that forms the technical basis for adequate solutions. I emphasize the need for economic analysis of the cost of the innovation and value of innovative services to consumers. As a result of the research, I have developed an analytical map of conceptual components of innovation to improve the service organization.
     Application Such an analytical map can serve as the organizational and methodological basis for practical use in modern organizations' activities in the area of services and the further improvement in terms of innovation development.
     Conclusions and Relevance The overall conclusion is that the innovative improvement of the service organization should be based on the results of permanent analysis of both individual and a specific set of influencing factors.

Keywords: service industry, service organization, economic analysis, customer value, service processes, innovative solution

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