While most everyone is familiar with product innovation, few are conscious of service innovation. However, the latest statistics from Peer Insight, a service-innovation research firm, reveal that service industries are rapidly overtaking product industries as the most prevalent and profitable forms of business. As the service industry grows, so to do consumer expectations. Increasingly, customers weigh the services that come along with products they purchase, such as the ‘Geek Squad’ support that comes with many products purchased at Best Buy, when deciding whether or not to purchase more expensive products, such as homes or electronics.
This change in the market’s attitude has drawn the attention of executives at IBM, who organized the SRI Initiative; a consortium of academics and executives from both the public and private sector, who gather to consider the effects of service innovation on the broader business community.
For more information on service innovation and SRI’s vision statement, read Reena Jana’s article in Business Week and visit the SRI Initiative website.
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