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SERVICE SCIENCE: RESEARCH AND INNOVATIONS IN THE SERVICE ECONOMY 2010, DOI: 10.1007/978-1-4419-1628-0

At one time, the belief was that services-ranging from healthcare to retail, from banking to education-were the exclusive domain of local providers and were therefore impervious to foreign competition. Because they required direct interaction with customers, service providers needed to be located where their customers were (Bryson et al. 2004). This belief-along with many others associated with service activities requiring direct customer interactions-is no longer true because information technology has fundamentally changed the way many services are now designed and delivered (Karmarkar 2004). In this editorial, we introduce a framework for service managers that shows how advances in technology are continuing to change the way service providers and their customers interact; how both providers and customers access resources and unlock their capabilities in the co-creation of value. We also identify some major challenges confronting today's service managers who are competing in a rapidly changing global knowledge economy. Their success in addressing these challenges requires increasingly sophisticated management techniques that continue to focus on creating value for both direct and indirect customer-provider interactions.