The article discusses how Chinese companies can improve their service development through innovation and value creation. By studying the successful online travel service Ctrip, the researchers found that service innovation and value co-creation in a networked environment are key to success. They analyzed Ctrip's business model and practices to uncover the secrets behind its achievements. The study also provides suggestions for supply chain management and proposes a framework for analyzing service innovation and value co-creation. The findings highlight the importance of adapting to the changing industrial landscape and leveraging technology to enhance service offerings.