Services form a major portion of the GDP of several nations, especially that of the first world nations. These nations also experience high cost of providing services of different kinds. This has resulted in the displacement of non-customer facing services to countries that can offer them at lower prices. Nations have to be concerned about sustaining their economies even as such off-shoring of services continue to grow. It is therefore important to understand how countries can create those service innovations that will help them retain the growth trajectory of their economies. We believe that the different types of service innovations need different approaches to the use of technologies. This paper review related work, introduce a new perspective on service innovation and identify how technologies can be managed to create optimal value from service innovations.