ABSTRACT
The aim of this chapter is to explain how information technology (IT) impacts innovation in services and identify mechanisms and models of IT-driven service innovation.
The starting point is a literature review on innovation in service sector and contemporary changes in its nature. Having explained new dimensions of innovation in services, the chapter focuses on mechanisms through which IT drives innovation in services and presents a conceptual framework of IT-driven service innovation development. The framework consists of components centered at value creation, delivery and capturing. It allows us to understand the role of technology in service ecosystems for innovation and to explain how in such circumstances firm value is created and distributed on a market.
Theoretical and conceptual considerations are illustrated by some examples of innovations induced by information technology in services (innovation in tourism, healthcare services and FinTech). The main conclusion for managing IT-driven innovation is that technological factors require to be enriched with social and behavioral components related to co-creative customer’s engagement as well as development of IT capabilities.
