Service innovation refers to the development of new or improved services that enhance customer experiences and meet changing market demands. This can involve introducing new service concepts, improving existing services, or utilizing technology to streamline service delivery. The goal is to create value for customers and differentiate a business from its competitors. Examples of service innovation include the rise of online banking, which allows customers to manage their finances remotely, and the implementation of chatbots in customer service, providing instant support. These innovations not only improve efficiency but also cater to the evolving preferences of consumers in a digital age.