Innovation, Service Innovation and Measuring Technology Enabled Service Innovation - A Disjointed State between Theory and Practice

The value from Information Technology (IT) has long been a debatable issue in business. As investments in IT continue to increase, so do the reliance of most organizations on their in-place technical infrastructure and the performance of their IT function. IT enabled service innovation by its very nature is elusive and hard to measure. Our approach seeks to explore how a service operator, such as an international airport, can gauge value from investment into IT when introducing service innovation. We examine how the airport operator combines a variety of accounting techniques and other tools to capture value from their IT investments. We offer some lessons learnt and suggest a more 'in sync' way for businesses evaluating their IT enabling service innovations.