Service Innovation Types

Sevice innovation can be radical, incremental or technology-driven. Clark and Johnston (2008) use a radical-incremental-technology-driven scale for categorizing and understanding types of innovation. They provide the following types: 

1. Radical (3 types)

• Major Innovation: new service driven by information and computer-based technology; 
• Start-up Business: new service for existing market; 
• New Services for the Market Presently Served: new services to customers of an organization. 

2. Incremental Innovations

• Service Line Extensions: augmentation of existing service line (e.g. new menu items); 
• Service Improvements: changes in features of currently offered service (e.g. Pacific Island/Maori Education Roles); 
• Style Changes: modest visible changes in appearances (e.g. style changes). 

3. Technology Driven Service Innovation

• E.g. Power/energy – e.g. international flights with jet aircraft; 
• E.g. Physical design - enclosed sports stadiums; 
• E.g. Materials - Astroturf and other new all-weather surfaces; 
• E.g. Methods - JIT and TQM; 
• E.g. Information - E-commerce using the Internet. 

Not all innovation is technology-driven, and innovations can be both radical (or incremental) and technology-driven.