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Service innovation analysis based on the value chain approach

Service is an active collaboration between the supplier and the customer, a relationship of ldquovalue co-creationrdquo. It appearances as a relationship between the supplier and the customer, instead of goods sold. So people and the relationships between them play an important role in a service system. We can say a service system is drive by people and their advanced relationships. The value created in a service system is the co-creation value, so the key characteristic that differentiates a service system model from a traditional economic transaction system is the interaction with the clients as participants in the service process, not only as value actives. This paper, according to the differentiation a service system from a traditional economic transaction system, divides the value chain of a service system into three components: supplier, employee, and customer, while introducing the definition of ldquoThe Difference Point of Service Quality Delivered (DPSQD)rdquo. DPSQD is the specific position of creating service differences which comes from two parties understanding service. The specific positions include: the position between customer and supplier; the position between supplier and employee; the position between employee and customer. Then according to the different positions of DPSQD, we can get the different effects of service system improvement. Finally we analyze the service system innovation, with aspects of technological people and the relationships between them. And emphasize the important role of technology in service system innovation: technology is not only the driver of service system innovation, but also the enabler of service system innovation. So we bring about the whole service system systematic innovation.