Service Innovation and Its Outcomes

946 Words4 Pages
Service innovation has long been a part of business, but the fact that service is not tangible like a product is makes service innovation a more elusive concept. Yet many businesses have sought to improve their service levels and gain competitive advantage by harnessing service innovation. This paper will analyze the issue of service innovation, including the ways it can be fostered and how one can measure the results of service innovation. One approach to service innovation has been to leverage emergent technologies. Jana (2007) notes that the development of the Internet (a product) has fostered tremendous advances in service innovation. The first major one was online shopping, but since then all manner of services have been brought to the online sphere. Customers can manage accounts online, of course, but also businesses have found new ways to interact with their customers online as well. The emergence of social networking itself somewhere between a product and a service has allowed companies to further innovate in the way that they interact with customers and the ways that they market to customers. Another way to foster service innovation is through knowledge. Jana (2007) notes that some major companies have banded together to foster new ways of developing service innovations. Kandampully (2002) suggests that knowledge, which is ever-changing in its nature is the core resource that allows for service innovation. In this respect, service innovation is fostered much
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