Analysis on Service Innovation of Product: Interpretation and Application of Theory on Color TV Products

As the market has become increasingly more competitive, only enterprises make product innovation can they gain sustainable competitive advantages. Based on the theory of product level and considering business activities, this paper proposes that product innovation happens in a two-dimensional space which is composed by the two elements above. In this article, "Service" refers to professional service activities provided for the creation and achievement of product by the enterprises. Service innovation of product, as a new service or the improvement of existing service, can meet the demands of consumers better and improve the value of product. By taking TV products for example, this article gives a further interpretation and application of the proposed theory. Finally, this paper concludes that: (1) the service innovation of product can be divided into three different levels, but all innovation have an effect on new product development, and (2) in practice, product innovation needs the support of service innovation in different product levels and different business activities to achieve the innovation of total product.