Service-Logic Innovations: HOW TO INNOVATE CUSTOMERS, NOT PRODUCTS.

The article focuses on value creation, which is defined by customer use, and a service-logic approach to innovation. Value propositions are created through an interaction of buyers and producers where the unrecognized needs of consumers become the potential market. Tangible products or services represent the complex relationship in a value-creating process of customer demand, production capabilities, and market exploitation, which then results in value realization. A study, based on value-in-use and value-in-exchange criteria, found two emerging patterns in service-logic innovation. The effect of this approach on the consumer roles of user, payer, and buyer, the reconfiguration of value constellations, smart offerings, Mobility Car-Sharing, business travel, and Google are mentioned.