A service innovation is a new or enhanced intangible offering that involves the firm’s performance of a task/activity intended to benefit customers. 
Consistent with this, the term can also refer to the underlying process of devising new or improved service concepts that satisfy the customer’s unmet needs. 
There are two general type of service innovations based on how they are delivered: 
E-service innovations are delivered primarily through the Internet, such as online ordering or order tracking. E-service innovations increase firm value for companies in most industries.
P-service innovations are delivered primarily through human (people) interaction, as with service desks. They have a positive effect on customer satisfaction – and therefore firm value – in human-dominated industries like hospitality and healthcare.
- Journal of Marketing Research, Service Innovativeness and Firm Value; Thomas Dotzel, Venkatesh Shankar, Leonard L. Berry; 2013.
- Bettencourt, L. A., Service innovation: how to go from customer needs to breakthrough services, McGraw-Hill, New York, 2010.