A big challenge in service business is how to manage customer knowledge and understand the customers’ value creation strategy and processes until the end customers. Also managing the interfaces between own processes and customers’ as well as with other parties’ processes in value co-creation represents a great challenge for service providers. Role of the customer in co-production of a service and/or value co-creation and how to users can be engaged into new service development, production and delivery have received the increasing interest by researchers in the fields of marketing and service and operations management (Grönroos, 2006; Grönroos, 2011; Matthing et al., 2004; Roth & Menor, 2003). However, customer’s actual involvement in value co-creation and service co-production processes already at the early stage of service development needs to be further explored in order to understand its influence on the future success of the service.In this project, modularity is studied as an imperative research and business practice issue to manage the complexity within the service company and along the whole value network. For example, critical elements of customer interaction and its processes and capabilities of customer and user involvement call for modularity that enhances the provider to proactively manage scalable value proportions at the global scale with local responsiveness.Due to the current development, i.e. transformation from product-based business into service-based (Caldwell & Howard, 2010; Ostrom et al., 2010; Pajarinen, Rouvinen & Ylä-Anttila, 2010), the role and importance of business services need increasing attention. Services cannot be seen in a traditional, product-oriented way but involving increasing amount of interactive, technology-based and knowledge-intensive components which make them difficult to specify and manage. Additionally, the services need to involve increasing awareness on sustainability and social responsibility which are included in the emerging business models (Allee, 2000). To do this, the business models need to be changed towards service-based models (Kindström, 2010) that foster the customer involvement, network, and service modularity in creating value of business service innovations.