Business services now account for about 70% of the total production and employment in OECD countries, but the real innovation is rare in the service sector. Many companies gradually improve their proposals, but few succeed in creating service innovations that launch new markets or modify existing ones. By thinking about the service from the point of view of its main advantages and its use in the separation of its production, managers can more easily see how out-innovations of their competitors. Before they can do that, though, they need to understand the different types of services to create a market innovation, as well as those that allow them. Presents and describes the two-by-two matrix, taxonomy helps managers to think strategically about the service innovations that can create new markets. Matrix dimensions are of the type for the proposed level of service and separation. The literature on best practice examples to highlight each cell of the matrix and explain the importance for understanding the dynamics of the cell, which is most suitable for the efforts of innovative services. "Hide
by Leonard L. Berry, Venkatesh Shankar, Janet Turner Parish, Susan Cadwallader, Thomas Dotzel Source: MIT Sloan Management Review 10 pages. Publication Date: January 1, 2006. Prod. #: SMR195-PDF-ENG
