IDC Develops Method for Service Providers to Measure Their Innovation

FRAMINGHAM, MA – MAY 31, 2001 – According to IDC, service providers have an opportunity to differentiate themselves based on the degree to which their offerings are considered innovative. However, many service providers are having extreme difficulty showing that their services are in fact innovative.


"Because business services are intangible, it’s challenging to demonstrate just how innovative they are," said Alister Sutherland, program director for IDC’s Innovation research. "Additionally, service providers are at a disadvantage when it comes to innovation because in general they cannot get their service patented or copyrighted. The minute they bring a new way of doing something to the market, it can be appropriated and copied."

According to IDC, service providers need to consider several factors when determining how innovative their offering is. Questions service providers need to ask themselves include:

· Do any competitors offer a similar product?

· Is the service based on technology? If so, who owns the technology?

· How difficult will it be for competitors to copy the idea?

· Will clients understand and be willing to pay for the value of the service?

"How service providers answer these and similar questions is essential in determining how innovative and valuable their products are," Sutherland said.

Download IDC’s Bulletin for Free

IDC has developed a "Service Innovation Score Card," which is a methodology for evaluating the value and actuality of a business service innovation. The score card is published in a new free bulletin titled Valuing Innovation: Challenges in the Service Industries (IDC #B24512). The bulletin examines the crucial issues surrounding technology, innovation, and their impact on competitiveness. It also provides insights into strategies for optimizing market value for service innovations. It is the first in a series of bulletins that will examine the issues of service innovation, intellectual property rights, differentiation, and competitive advantage for service providers.

To download your free copy, visit and search for document number 24512

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.


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