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Service Innovation by Lars Witell, Gary R. Schirr, Per Kristensson, Anders Gustafsson

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CHAPTER 2

What Is Service Innovation?

If you want something new, you have to stop doing something old or if you do what you did you get what you got.

—Peter Drucker

In this chapter, we describe service innovation and what sets it apart from new product development focused on goods or hardware. We will show that service innovation involves a wider and more holistic approach to innovation, comprising process, experience, social aspects, and behavioral and business models or in essence what creates value for customers.

What service do you think of when hearing the term “service innovation”? Many people find this question very difficult and we do receive replies like the concept of “lean” or Internet banking. If you were asked about innovations in ...

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