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This paper tackles the issue of how to make the process nature of services more visible in the characteristics-based service innovation model developed by Gallouj and Weinstein (1997). We argue that the invisibility of the service process in the original model is likely to reduce the use of the model for detailed-level analyses within individual services. In our supplemented model four new aspects are added: a separate category for the process characteristics, the ‘front office - back office’ division, the customer’s technology and process, and the distinction between direct and indirect utilities. We apply our model in two empirical cases, which depict knowledge-intensive business services (KIBS) and consumer services. JEL Codes: L80, O30, O33