Abstract
Innovative service design is crucial in the ever-changing healthcare environment in order for organizations to hold competitive advantage. The concept of service design thinking refers to the marketing and design of services that improve the customer experience and the interactions between customers and service providers. Innovative thinking in service design can help organizations gain competitive advantage. The challenges with service design thinking in healthcare and innovative ways of thinking about service design in healthcare are introduced, as well as ways to build and sustain competitive advantage in healthcare.