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This talk explores how service innovations emerge and develop across diverse organizations and sectors. A significant challenge for service innovations is that they often follow a distinct trajectory of innovation modes – unlike product innovations – before achieving market success. While some innovation modes occur within service development processes, others take place externally. Centred on the ongoing evolution and development of innovations, this talk addresses two key areas. First, it examines how customer feedback can act as activation triggers for developing absorptive capacity and thereby contributing to continued value creation and service development. Second, it delves into service modularization within a manufacturing context, identifying specific modularization processes and their impact on the characteristics of service modules.