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This book asks: (1) How is the service sector growing; (2) what is service innovation; (3) what are the drivers of service innovation; and (4) how can organizations innovate service in a structured way? The book views service as the value-creating activity of customers. The role of a company is to provide the resources and knowledge to enable value creation. We develop a model of service innovation. We also develop guidelines for what is required from the organizational perspective: how should an organization view its customers to be successful, what does a service development process look like, and how to transform an organization that has a product focus to a service orientation. In Chapter 1, the authors review the definition of service and the narrowing difference between goods and service. They argue that the subjects of service innovation and service itself are vital and understudied. They believe that understanding service differently will influence both what we believe an innovation is and how it is created.

This book asks: (1) How is the service sector growing; (2) what is service innovation; (3) what are the drivers of service innovation; and (4) how can organizations innovate service in a structured way? The book views service as the value-creating activity of customers. The role of a company is to provide the resources and knowledge to enable value creation. We develop a model of service innovation. We also develop guidelines for what is required from the organizational perspective: how should an organization view its customers to be successful, what does a service development process look like, and how to transform an organization that has a product focus to a service orientation. In Chapter 2, the authors describe service innovation and what distinguishes it from new product development focused on goods or hardware. They argue that service innovation involves a wider and more holistic approach to innovation, comprising process, experience, social aspects, and behavioral and business models or what creates value for customers. They review and categorize different types of service innovations and illustrate them with examples, including Ikea and Skype.

This book asks: (1) How is the service sector growing; (2) what is service innovation; (3) what are the drivers of service innovation; and (4) how can organizations innovate service in a structured way? The book views service as the value-creating activity of customers. The role of a company is to provide the resources and knowledge to enable value creation. We develop a model of service innovation. We also develop guidelines for what is required from the organizational perspective: how should an organization view its customers to be successful, what does a service development process look like, and how to transform an organization that has a product focus to a service orientation. Chapter 3 focuses on the importance of understanding "value in use"-the value-creation process of the customer. Questionnaires, focus groups, and even in-depth interviews rely on a customer's memory of this process. Research shows, however, that people are not very good at remembering such activities in detail. Organizations must therefore utilize user research methods that uncover needs and be customer-oriented in order to meet those needs.

This book asks: (1) How is the service sector growing; (2) what is service innovation; (3) what are the drivers of service innovation; and (4) how can organizations innovate service in a structured way? The book views service as the value-creating activity of customers. The role of a company is to provide the resources and knowledge to enable value creation. We develop a model of service innovation. We also develop guidelines for what is required from the organizational perspective: how should an organization view its customers to be successful, what does a service development process look like, and how to transform an organization that has a product focus to a service orientation. Chapter 4 covers the service innovation process and what an organization must do to create a com¬plete offering. Service innovation is more iterative and less structured than product-development processes for goods. They suggest that a service innovation process can be divided into three steps: focus (on the development project), understand (the customer), and build (a structure that facilitates delivery of customer value). Because services are easier and quicker to copy than physical products, the chapter concludes by discussing how a company can create unique offerings.

This book asks: (1) How is the service sector growing; (2) what is service innovation; (3) what are the drivers of service innovation; and (4) how can organizations innovate service in a structured way? The book views service as the value-creating activity of customers. The role of a company is to provide the resources and knowledge to enable value creation. We develop a model of service innovation. We also develop guidelines for what is required from the organizational perspective: how should an organization view its customers to be successful, what does a service development process look like, and how to transform an organization that has a product focus to a service orientation. Chapter 5 covers customers taking active roles in service innovation. The most pertinent example of active customers is lead users, who innovate what they are most in need of. Lead users are those who stand to most benefit from product advances, but are often identified by the fact that they are already innovating. Customer involvement encompasses how companies may identify and cooperate with those customers who possess a potential for innovation. The chapter also discusses ethnography, a research method used to understand the customer's value-creation processes in depth.

This book asks: (1) How is the service sector growing; (2) what is service innovation; (3) what are the drivers of service innovation; and (4) how can organizations innovate service in a structured way? The book views service as the value-creating activity of customers. The role of a company is to provide the resources and knowledge to enable value creation. We develop a model of service innovation. We also develop guidelines for what is required from the organizational perspective: how should an organization view its customers to be successful, what does a service development process look like, and how to transform an organization that has a product focus to a service orientation. Chapter 6 covers service innovation in firms with a goods-centric mindset. Even some traditional service organizations view their standardized services like goods and can be considered goods-centric. In health care, goods-centricity is often used to produce care as efficient and profitable as possible. The authors briefly discuss why and how these "goods-centric" or "product focused" firms try to increase the share of services and how they use service innovation to differentiate their offerings. They also consider various service strategies and how firms can change their business models to charge for services that they previously offered for free.

This book asks: (1) How is the service sector growing; (2) what is service innovation; (3) what are the drivers of service innovation; and (4) how can organizations innovate service in a structured way? The book views service as the value-creating activity of customers. The role of a company is to provide the resources and knowledge to enable value creation. We develop a model of service innovation. We also develop guidelines for what is required from the organizational perspective: how should an organization view its customers to be successful, what does a service development process look like, and how to transform an organization that has a product focus to a service orientation. Chapter 7 summarizes many of the key insights from Chapters 1 through 6. Service innovation is different from new product development for goods. It is iterative and less structured than NPD for goods. Scientific inquiry and true experimentation are built into a good service innovation process. A deep understanding of customer needs and the value-creation process can be obtained only through direct observation and participation. Important customer knowledge cannot easily be shared; it becomes second nature and is contextual, tacit, or sticky knowledge that is not communicated even within an organization.