In this article we find that we innovate in services in three broad categories: emerge, enhance and extend.
Emege - brand new innovations, including servicisation of products
Enhance - improvements and incremental innovation
Extend - moving our service sideways, or downwards; as well as aligning with other services to increase our success
To help us understand this, we use Gallouj & Weinstein's model. This breaks services into two sets of characteristics - external and technical - and two sets of competences - provider and end user. Innovation is then a case of changing those characteristics and/or competences that creates new value