Innovation Without R&D

The secrets to providing innovative services

Increased expectations from customers and financial markets, coupled with the rapid erosion of brand loyalty, means that companies in the services industry have to innovate continuously. However, most service companies lack research and development departments—the traditional backbone of innovation—and, in general, have very little to show in terms of innovation capabilities. But service companies have to be innovative. In this paper, we go behind the scenes to unravel the secrets to providing innovative services.

In services, the foundation of successful innovation is a more flexible and iterative approach in which people contribute knowledge based on their capabilities and reputations.