Service Innovation on Electronic Business: The Case Study of Taiwan

This paper presents the evolution of service innovation on e-business (electronic commerce) industry and forecast the future market demand in Taiwan. The emerging business model of service innovation creates many value-adding economical activities for e-business sector, including retail, finance, transportation, and entertainment. E-business industry becomes more dynamic and diversified. With multiple-analysis, this study used not only Bass model to forecast the life cycle of e-business industry, but network analysis, content analysis and interviews to deepen understanding of the process of service innovation within the broad electronic services scope. This study has suggested e-business industry in Taiwan has turned mass service into infrastructure, platform and software service and build another industrial life cycle. The findings of this study also have implications for the new business model based on new service innovation and innovative service diffusion. A limitation is well known fact that sudden services breakthroughs often have not been foreseen by the majority of main-stream e-business services.