Abstract
Changes in water law and policy, in the UK and further afield, are promoting social and service innovation, as well as technical innovation in the water sector. In particular, the separation of wholesale and retail water and sewerage services for English and Welsh commercial water systems customers is leading to a focus on service innovation. But what do we mean by 'service innovation'? To whom does it apply and how do these parties interpret it? To answer these questions, this paper presents the findings of recent interviews undertaken by and case studies presented to the Water Efficiency (WATEF) Network Service Innovation Technical Committee. The paper explores definitions and interpretations of service innovation (SI) and discusses case studies where SI is already being realised in the water sector. The study was conducted using interviews and case studies. tree-branch model of SI is proposed, emphasising the placement of the customer as the focus of SI. A revised definition of SI was also provided to assist water service providers in enhancing the services provided to their customers. The study revealed that the water sector offers scope for improvement in fundamental business services. These include billing, customer relations, communication (information services) and data provision and visualisation.
Highlights
The Water Act received Royal Assent on 14th May 2014 [1], ushering in wholesale and retail separation and opportunities for non-domestic customers to change their supplier
Participants in recent CCWater research highlighted there was limited information available on the percentage of savings or value added services in such renegotiation cases [3]. Another case where deregulation may be enacted differently or produce different results is where a company’s business model may vary. This is exemplified by Dŵr Cymru Welsh Water, which operates in the majority of Wales, and is owned by a single private company limited by guarantee – it is able to retain financial surpluses to reinvest into company activities
In order to test and refine the working definition of service innovation for water efficiency (SIfWE) and gain insight into how SIfWE is perceived within the water sector, a mixed methods approach comprising the following data collection methods was utilised: 1. Links to an online questionnaire-based survey form and separate case study template form were circulated to Water Efficiency (WATEF) Service Innovation Technical Committee (SITC) member’s networks; 2
Summary
The Water Act received Royal Assent on 14th May 2014 [1], ushering in wholesale and retail separation and opportunities for non-domestic (business) customers to change their supplier. Participants in recent CCWater (consumer body) research highlighted there was limited information available on the percentage of savings or value added services in such renegotiation cases [3] Another case where deregulation may be enacted differently or produce different results is where a company’s business model may vary. This is exemplified by Dŵr Cymru Welsh Water, which operates in the majority of Wales, and is owned by a single private company limited by guarantee (i.e. without shareholders) – it is able to retain financial surpluses to reinvest into company activities. Use of ODIs in the energy sector has successfully led some service providers to reorganise with a focus on the delivery of regulatory promises through managing their business differently. Whether or not this will have similar impact in the water sector and what it means for service innovation will be seen in the asset management planning period (AMP6) [5]
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