A colleague recently asked – what is service innovation?
OECD and others have written a lot about service innovation from a largely economic perspective, contrasted with agricultural or manufacturing innovation.
The biggest challenge in defining service and service innovation are the dominant logics – which is usually based on economics and sectors of the economy:
product innovation – a thing
process innovation – a set of activities
service innovation – a system with people inside
well aren’t there things and activities in systems with people inside?
so what’s the difference?
Here is the most concise I can be:
service is defined as the application of knowledge for mutual benefits (value co-creation)
service innovations scale the benefits of new knowledge, globally, rapidly, and sustainably
service platforms help scale service innovations – platforms can be:
technology: Internet, smart phones
business models: franchises, cartels
government policy and rules: universal education, universal access