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Innovation in Services: Corporate Culture and Investment Banking
Innovation is as important in services as it is in manufacturing. However, competing on innovation in services demands a different organizational approach. Relative to innovation in manufacturing, innovation in services has five distinctive characteristics--it is: distributed throughout the organization; fluid, that is, more continuous than discrete; broadly relevant to hiring and promotion decisions; influenced by reward systems and culture at the firm-wide level; and enabled by leadership. The foundations--both cultural and structural--for competing on innovation in services must operate pervasively throughout the organization. Examines innovation in investment banking and discusses its implications for competing on innovation in other service industries.