ed and established in research (e.g., Surowiecki, 2005; von Hippel, 2005; Chesbrough, 2006; Gassmann, 2006; Ogawa and Piller, 2006; Lakhani and Panetta, 2007; West and Lakhani, 2008). However, these results have not yet been linked to NSD and thus escaped the sys- tematic literature review. This research argues that an open-innovation paradigm rather than a closed- innovation paradigm is necessary for successful innovation of electronic services. This is due to their heavy reliance on reuse, their reliance on new business models, and knowledge leveraging as services are implemented as software (Gassmann, 2006). As open innovation is geared toward systematically integrating external ideas and influences into the internal innovation process, a systematic approach becomes available for the integration of the transparent feedback generated by ser- vice usage of electronic services. To support such an open innovation process in the networked environment in which electronic services operate it would be necessary to provide a central, shared innovation repository through which the diverse actors like service provider, cus- tomer, and aggregator can interact (Riedl et al., 2009a). Thus, a duality of an open and networked structure for the delivery of many electronic services and an open and networked model for the development of these services is created. Taken together the special requirements posed by developing new electronic services, the environment of highly networked services, and the move to an open innovation model offer the potential for new and improved service innovation approaches that are until now little understood. 7.5 Conclusion NSD is a rather complete method describing key processes and tasks. Moreover, it covers all phases of the life cycle from design, analysis, and development to launch as is apparent from the wide collection of process models that have been reported. Especially noteworthy is the cyclic model of Johnson et al. (2000). However, the design of electronic services is not explicitly cove