For a product based company, their product innovation is their IP and possibly unique selling technique. I heard many times from many entrepreneurs, service companies does not have an IP. Being a founder of a service/consulting company, I was finding many days how to develop an IP.
After a long days of study I found the answer. It comes with experience and domain expertise. Let me explain how. Your organization may have a set of experienced people who have domain expertise in three different domains. May be, in the following vertical – medical, insurance and hospitality. Those set of people have in-depth knowledge in those industries and have implemented many software for them. So they know in and out about those industry and processes. They can guide those client companies how to improve their process and how software can increase productivity, cut cost etc.
Now you may have a different set of people who are good at new technologies available in market, in a word cutting edge technology. Those technical people once tagged with those domain experts, create an excellent unique service for your clients. You will find those services are innovative and unique in many ways since they are built to facilitate the process improvement of those specific industries. This unique service can be defined as intellectual property for a service company.