Abstract

Since the early 1960s, many innovations on information technology-enabled services (IISs) that fulfill underserved customers and create competitive advantages for firms have been examined on the realization of their values. However, even with much theoretical promise, most IIS experiments have failed. Extant argumentsattribute this to initiatives, business models, institutional challenges, professions, sector characteristics, market segments or geographic locations. However, the issue on how to proactively manage the development, deployment and diffusion of new IT-enabled services still remains unclear. This study provides a comprehensive picture of (potential) challenges of IISs, explains how values and expenses are transformed within IIS projects. Moreover, we can conclude that elaborate IT-enabled services enable service-for-service exchanges and produce innovations and challenges. Nevertheless, successful IT-enabled services need not only toeliminate retardants from different levels-societal, industrial, organizational, group and individual, but also to maximize values while controlling expenses during theprocess of IISs.

Key words: Service, service innovation, information technology-enabled service, proactive management, value.