All innovation is service-logic innovation. This challenge to traditional,
attribute-based views of innovation rests on the understanding that any innovation
changes the way customers co-create value with the firm. This new perspective
overcomes an artificial distinction between product and service
innovations. Furthermore, it facilitates a more customer-centric view of innovation
rather than the traditional and limiting product-centric view.
Our inductive research has produced a managerial framework that corresponds
with the growing body of service-logic literature. By looking outside-in,
managers change customers’ roles as users, buyers, and payers. By working
inside-out, managers help customers became smarter through smarter offerings,
by relieving or enabling them of certain co-creating activities, and by reconfiguring
value constellations. Managers who understand these patterns of servicelogic
innovation can systematically and proactively explore new opportunities
and, at the same time, anticipate competitive threats from competitors’
innovations.