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This paper examines R&D activities in ICT (Information Communication Technology) and aims to identify the key factors that lead to innovative change in service development. Software for major business applications has normally been run on users‟ corporate servers, but several IT vendor companies now provide it as an on-demand service (Software as a Service) through their own network. This trend is apparent in areas such as infrastructure (Cloud computing) and service delivery platform (Platform as a Service). As a result, developers‟ tasks are mainly focused on selecting and integrating software components with configuration tasks to meet customer demand. Consequently, service providers are required to integrate and manage these services in cooperation with other service providing companies. Services have been analysed within the theoretical perspective of providercustomer interactions, which are regarded as inseparable activities. Through this interaction, providers are expected to activate the process of creating value for the user. SD logic defined „service‟ as the application of knowledge and skills for other parties. Companies‟ resources should be used to provide „service‟ in the collaborative interaction with customers. This study examines recent service developments in the Japanese telecom industry using case methodology. The findings of the research are as follows: 1) As developments within web technology have led to standardised interfaces and platform functions, services are now being offered by integrating modularized service components; 2) Additionally, there is a new emphasis on the role of interfirm …