A service cavity is simply a framed system that allows for plumbing, HVAC and electrical to run freely through a building without disturbing the air, vapour or thermal barriers.
A big issue with this approach is the potential for loss of interior square footage - you can't retrofit a service cavity into an existing building without losing space.
Some considerations:
There are many types of service cavities - sleeper floors, chases, varying depth framing (2x4, 2x6), bulkheads.
Window and door openings will require special attention for increasing the depth of the RSO. Plan for jamb extensions!
With allowable floorspace, this approach can be a mid level intrusion - a renovation may not require as much demolition if you're building a new shell to the inside.