Final answer:
Service innovation is driven by new product technology, customer needs, and observant contact employees.
Step-by-step explanation:
Service innovation is driven by multiple factors, including:
- New product technology: Technological advancements can lead to the development of new and improved products or services. For example, the invention of the transistor revolutionized the electronics industry and enabled the creation of smaller and more efficient devices.
- Customer needs: Understanding and meeting the needs and preferences of customers is crucial for service innovation. Companies need to listen to customer feedback, conduct market research, and identify areas where improvements can be made.
- Observant contact employee: Front-line employees who interact directly with customers can provide valuable insights into their needs, expectations, and pain points. Their observations and feedback can help drive service innovation.