What is Service Innovation?
service:
the application of resources (e.g. knowledge, capabilities, technology, time, money, effort) for the benefit of another; co-creating value.
innovation:
occurs when models of practice change, co-creating new value(s) for stakeholders, whether incremental, radical or super-radical.
Cities
Initial Innovation: The first cities emerged in the 4th millennium BCE in Mesopotamia.
Benefits to Society: Simple concentration of people, knowledge, and resources led to innovations from community education, healthcare and entertainment to infrastructure.
Harms: As benefits scaled, harmful impacts also began to scale.
Service Innovation: Institutional arrangements such as governance, social and trade structures, and specialized professions were developed to regulate the scaling of harms within these more complex economies. That evolution is service innovation.
Automobiles
Initial Innovation: The first gasoline-powered car was built in Germany in 1885.
Benefits: Wide-ranging impact on transportation and social mobility, the automobile revolutionized the way people move from one place to another, making transportation more accessible, efficient, and convenient. People could travel greater distances, expand their horizons, and pursue new opportunities. Economies, trade, tourism and social connectivity grew.
Harms: Pollution. Traffic. Accidents, injuries and passenger deaths.
Service Innovation: With pressure from government regulations, consumer demand and competitive commerce, the automobile industry has continuously improved products and services, introducing safety systems, fuel efficiency, and connectivity. It has also embraced sustainability and digitalization as strategic imperatives, investing in new technologies and collaborations to reduce environmental impact and enhance customer experience.