Abstract:

A new concept of service innovation is proposed in this paper. Strategic alliance among service firms would not concern the capital assets and thus derive the sunk cost because of the intangibility of service. Hence, service innovation originated from the dynamic alliance among firms. Before that, firms have to set their service element according to their competence in order to bargain with others. 3V3D-model provides an integrative perspective to develop their competence according to their orientation of position. 3V refers to value proposition, value deployment, and value appropriation. It gives an aspect of value system from industrial level to assist firms to find their position, and define the network relationship in the industries, then show them how to search their resources from the network. 3D indicates service design, service development, and service delivery. It provides a service system from business level to show the implemental process of service innovation. Anyhow, 3V3D-model leads a completed program for business from both industrial and firm level to implement service innovation.