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Riggs Bank N.A. of Washington, DC entered into a consent order with the Office of the Comptroller of the Currency in July 2003, received a cease and desist order from the Federal Reserve Board later that year, and was assessed a $25 million penalty by the Financial Crimes Enforcement Network (FinCEN) in May 2004, all for Bank Secrecy Act violations. In general, Riggs was deficient (i) in designing a program tailored to the risks of its business that would ensure appropriate reporting, (ii) in implementing the procedures it did have, and (iii) in responding to classic “red flags” of suspicious conduct. As a result, Riggs failed to file a number of timely and complete suspicious activity reports (SARs) and late and complete currency transaction reports (CTRs) for high‐risk accounts. In discussing the violations that occurred, FinCEN articulated internal control, customer due diligence, compliance monitoring, and independent testing standards that Riggs did not meet, and that other institutions should regard as rules of general applicability.

Introduction In the last decade the problem of product liability has become one of the major concerns affecting industry, consumers and government. Product liability, which relates to the responsibility of a manufacturer to compensate a user who suffers injury from using his product, is not a new concept. King Hammurabi of Babylon instituted these two laws over 4,000 years ago:

The paper aims to discuss how services and service innovation are inter‐linked and support organisational innovation. In particular, the reorganisation of operations and the introduction of new organisational arrangements are examined and conceptualised for further empirical analysis.

Based on the analysis of the different, most recent developments in the literature and practical experiences, a conceptual framework is developed that incorporates service and organisational innovation.

The developed conceptualisation focuses on the role of services and service innovation, and the emerging interactions between organisations and services providers, where facilitators play a role. Accordingly, services are no longer a secondary instrument of the value chain. Instead, they have become essential and may add value from their involvement, for example, in product design, business management, procurement in global markets, and support to customers' participation in value creation.

The paper provides a concept derived from an in‐depth literature analysis. In a next step an empirical analysis based on the proposed concept would complete the theoretical findings.

The proposed conceptual framework supports the overall recognition of service and organisational innovation as a powerful mechanism to gain competitive advantage for companies.

This paper proposes for the first time a conceptual framework that shows that organisational innovation turns into a prevailing tool that facilitates the integration of service innovations into the value chains of companies, and thus the increasing level of inter‐connectedness required for firms' competitiveness.