Strategies towards innovative services: findings from the German service landscape

The specifics of services seem to prohibit a simple transfer of innovation strategies from the manufacturing to the service sector. To better understand what works, successful strategic service innovators and their strategic approaches have been the focus of this study. To do so, 80 service innovators in Germany have been monitored over a period of one year. By analyzing them, according to the basic strategies they follow (low cost, differentiation or mixed emphasis) and the dominant design of their service delivery system (information technology-based, people-based or mixed approach), this paper provides an understanding of the strategic approaches followed by successful service innovators. Our findings propose that there is a fit between the complexity of service offerings and variety of the interaction approaches by successful service innovators. In sum, we argue that for an appropriate design of service innovation strategy both managers and researchers need to go beyond the traditional distinction of low cost and differentiation strategy.