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Questions: 1.Describe how service and manufacturing firms are different when it comes to innovation? 2. What tendencies the manufacturing and services exhibit in exploiting customer ideas for new offerings? 3.What are the alternative ways services formalising the innovative process? 4.Why senior managers in service organisations should participate in the ideation process? 5. Are there any differences between new services and new products in the role of the customers for idea sourcing across sectors? Answers: 1. The major differences between the service and manufacturing firms are the tangibility of the outcomes, i.e., tangible or intangible. The service firms mainly focus on the outcomes such as consultancy, training and developmental programs that are intangible whereas the manufacturing firms include the production of physical products and services that could be felt and touched by the customers to fulfill their needs and requirements. From the innovation perspective, service firms manage innovation through the selection of services that can create effective patterns to formalise the process of innovation. The service innovation could enable the organisation to respond to the changing needs of consumers and develop new delivery methods by improving the communication and information technology system efficiency (Aarikka-Stenroos and Sandberg 2012). The manufacturing firms innovation allows for managing research and development activities for innovating the products and enhancing its qua lities to ensure customer satisfaction. 2. The service firm manages innovation by developing new products and services, gain additional benefits to prevent simulated products development by its competitors and predict future outcomes to ensure continuous improvements all throughout. The manufacturing firms innovate by establishing a good relationship between standardisation and formalisation to improve the structure of organisation. Making decisions is an integral aspect of organisational success, and it is a major innovation procedure for the manufacturing firms as well because it can not only promote a healthy culture but will also result in enhancing the organisational efficacy (Armstrong et al. 2015). 3. Formalization of innovative processes has helped in linking the predicted outcomes with the structure and strategies followed by the organisations. This has facilitated innovative behaviours among the workers and enabled them to become more creative while managing the production of goods and services. The protection of intellectual properties such as copyrights, trademarks, etc. can be done to formalise the innovative processes and generate improvements in the areas of production, delivery, research and development activities. The service firms have made changes in the global economic environment and implemented effective information technology to improve the outsourcing and communication processes too (De Luca and Atuahene-Gima 2013). 4. The involvement of senior managers is essential not only for decision making but also to formulate new ideas and concepts. As the senior managers hold the most authority and power to make the organisation function properly, it is important for them to get involved in the process of ideation and ensure that proper decisions are made by assessing the data and information obtained from the beta testing. The senior managers could guide the employees in the right direction by making them understood about their roles and responsibilities and furthermore train the workers to make them skilled and knowledgeable as well. Their opinions and ideas matter and it could help in improving the research and development activities too (Lusch and Nambisan 2015). 5. Yes, there are differences between services and products related to the idea sourcing across sectors. By obtaining ideas, the customers would be able to know about the new products and how those could satisfy them whereas the new services of the organisations could help in innovating the manufacturing and production processes for delivering the best quality products to the customers. Based on the surveys, data and information were collected, and this had made the customers informed about the innovation procedures along with the corporate structure and performance as well (Aarikka-Stenroos and Sandberg 2012). References Aarikka-Stenroos, L. and Sandberg, B., 2012. From new-product development to commercialization through networks.Journal of Business Research,65(2), pp.198-206. Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015.Marketing: an introduction. Pearson Education. De Luca, L.M. and Atuahene-Gima, K., 2013, May. Market knowledge dimensions and cross-functional collaboration: Examining the different routes to product innovation performance. American Marketing Association. Lusch, R.F. and Nambisan, S., 2015. Service innovation: A service-dominant logic perspective.Mis Quarterly,39(1).