Three Keys To Making Service Innovation A Success

The expansion of services certainly stands as the most significant and spectacular business trend in the past three decades. Nowadays, service delivery represents approximately 80% of the US Gross Domestic Product (GDP) and over 75% of the GDPs of most of the Organisation for Economic Co-operation and Development (OECD) countries. Increasingly, there is evidence that services dominate global economies and drive growth. Services are often referred to as the reciprocal of manufacturing because of the importance of labor in the total cost of most of service outputs, as opposed to that of materials in tangible goods. The expansion of services is the most spectacular business trend in the past three decades. Western economies, in particular, continuously add positions in services but shed jobs in manufacturing. After a long period of stagnation due to the predominance of manufacturing, international trade in services is now dramatically taking off. Wealth is finally created in the service economy, thanks to the “capitalization of innovation”. Leading brands have emerged in services; and many are strong enough to carry an astonishing value. As it is frequently emphasized, “modern economies are inescapably service economies”…