The Evolving Role of Innovation Centers in Driving Client Value

This IDC Market Perspective, informed by visits to service providers' innovation centers across Europe and discussions with key stakeholders (both vendors and clients), identifies the core roles of a modern innovation center, the design choices that drive adoption, and an operating model that balances cost and impact. It also includes a practical scorecard for measuring value. Innovation centers have become a strategic asset for IT and business service providers. The best centers are not showrooms or gadget galleries but modular business spaces where providers and clients co-create, test realistic use cases, and convert interest into funded initiatives. Done right, a center raises win rates, shortens sales cycles, improves solution fit, and strengthens senior relationships. Done poorly, it becomes a costly stage set that ages quickly and fails to influence buying decisions. "Service providers that make their innovation centers engines for decisions and pilots will outperform those treating them as brand theaters," says Senior Research Analyst Dina Capelle, European Services, IDC