Service innovation - lessons from modularization and open innovation - a new service value

Abstract

The traditional manufacturing model of volume-variety influencing the conduct of business is not entirely representative of service-centric business. The latter has two key differences â it is much more end-user centric and individualistic in experience. The complex nature of service attributes also make it much more convoluted. The notion of product being the centre of interaction is being replaced with service processes involving participants and generally defined between a service provider and service consumer. The aim of this paper is to validate the service innovation hypotheses put forward based on significant developments in value networks, open interfaces, and business models recently. In doing so, this theoretical paper substantiates the claim that prescriptive volume-variety relationships are little meaningful in service delivery environment