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Abstract

Professional service firms are facing new competitive challenges in a global market with more value-focused clients, service commoditization, regulatory changes, and new Internet-enabled business models. They increasingly need to improve competitiveness through sustained innovation of the value they provide and the efficiency with which they provide it. But how can firms establish an effective and sustainable innovation system? This Executive Digest shares a best practice model for innovation based on academic research and honed by a decade of practical experience in application across professional service firms in consulting projects. This work covers how to develop innovation strategies by establishing processes and organization to support innovation, providing innovation training, developing new services, and re-engineering existing services. The author, Alastair Ross, details the practices required and shares some of the challenges encountered in realizing them. This article draws heavily on his latest book, Innovating professional services: Transforming value and efficiency.

6. Conclusions

Herein, I have described the overall goal of an innovation system suitable for a professional services firm and have provided examples of good and bad practices in firms. I have also outlined the key elements of the approach for establishing an effective innovation system within a professional services firm. While innovation is challenging, especially in a professional services environment, applying a systematic approach as described will substantially improve a firm’s ability to enhance its innovation capabilities, and hence its business performance.