Technology companies are under enormous pressure to improve the performance of their service businesses. And this pressure could well increase over time. The simple truth is that as technology firms become more services-centric, they will be less able to meet overall company and shareholder expectations without making serious, systematic investments in services research innovation. Yet, technology companies appear to be doing anything but. Results from an industry survey focusing on services research and innovation, demonstrate that a clear "services innovation imperative" is being confronted tepidly and tentatively, if at all, by most technology companies.

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