The paper explores how dynamic capabilities of sensing, seizing, and reconfiguring shape the development of service business in different capital goods industries. Two different approaches to service business development are found. The first can be described as exploitation of service opportunities through temporal expansion of the service business along the primary customer activity chain. The second focuses on the exploration of service opportunities through spatial expansion and reconfiguration along the adjacent customer activity chain. In other words, it is about searching and discovering new service business opportunities by enhancing companies' autonomy to innovate new services.