Purpose - To demonstrate an intrapreneur led three-phase model of innovation based on understanding the relationships between service delivery and product development thought, and the application of intrapreneurial focused teams in the healthcare and manufacturing industries. Design/Methodology/Approach - The research proposes a model of innovation that starts with effective teambuilding within an intrapreneurial context then encompasses the relationship between service and product as a platform for the development of new services and products. A two-part qualitative case study provides insight and understanding of the model's application within both service and manufacturing environments. Findings - The research found that investigating service delivery shortfalls with effectively developed intrapreneurial teams leads to new and/or improved services. New service developments in turn lead to the development of new products. An action research model based on Deming's PDSA cycle determines the point of departure for each stage of innovation. The PDSA cycle provides a method for combining innovation, knowledge development and management. Practical implications - Current approaches focus on the characteristics of intrapreneurs, rather than on the linked activities that lead to successful product/service innovation. Important issues such as how teams progress through the stages of service and product development are not usually considered. As a consequence, there is little in the extant literature to guide prospective intrapreneurs or organisations. Originality/value - Little research has been conducted into how intrapreneurship occurs in organisations. This paper provides insight into how intrapreneurship functions through new service and new product innovations in both the service and manufacturing sectors.