With the global spending of more than US$4.1 trillion in 2007, healthcare has been one of the largest

industries worldwide. To better plan and develop the healthcare system, an effective way is to leverage

on the advancement of information technology (IT). However, despite of many attempts in the

computerization and automation of healthcare services, most of the healthcare information systems

failed to deliver in the era of rising expectations. With respect to this aspect, this study focuses on the

success stories of a private-owned hospital in Singapore. We illustrate our lessons learned from this

hospital, the Alexandra Hospital, which has successfully innovated a healthcare system setting and

making a benchmark standard for the Singapore healthcare industry. By conceptualizing on the

generation of innovative capability process, this study complements the scarce innovation literature in

the service industry. Theoretical and practical contributions were shared and documented in this