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The Evolving Role of Innovation Centers in Driving Client Value

Publisher IDC
Published Dec 22, 2025
Length 11 Pages
SKU # IDC20676908

Description

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

Table of Contents

11 Pages

Executive Snapshot

New Market Developments and Dynamics

Purpose of the Innovation Center

Design Choices that Drive Adoption

Focus on Emerging Tech (Especially AI)

From Broad Scope to Industry Focus

Global Networks with Local Customization

Hybrid and Virtual Innovation Experiences

Return to Hands-On Co-Creation

Ecosystem Partnerships and Open Innovation

Emphasis on Measurable Outcomes

An Operating Model that Balances Cost and Impact

Funding Model

Account Growth and Pipeline Velocity

A Substantial Investment

How to Measure the Value Created as a Service Provider

Advice for the Services Provider

Anchor the Lab in Client Needs and Strategy

Keep Tech Offerings Cutting-Edge (But Relevant)

Localize and Specialize Innovation Centers

Focus on Tangible Client Outcomes

Integrate Innovation Centers with Delivery and Strategy

Measure Impact and Improve Continuously

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