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Journal ArticleDOI

New service development: areas for exploitation and exploration

01 Apr 2002-Journal of Operations Management (No longer published by Elsevier)-Vol. 20, Iss: 2, pp 135-157
TL;DR: The management of new service development (NSD) has become an important competitive concern in many service industries as discussed by the authors, however, NSD remains among the least studied and understood topics in the service management literature.
About: This article is published in Journal of Operations Management.The article was published on 2002-04-01. It has received 688 citations till now. The article focuses on the topics: Service system & New product development.
Citations
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Journal ArticleDOI
TL;DR: There is a significant difference in the results based on decision makers and content analysis in Turkish banking sector, and a foreign bank has the best performance, whereas another foreign bank states on the last rank.
Abstract: The aim of this study is to evaluate new service development competencies in Turkish banking sector Within this scope, 16 Turkish deposit banks are taken into the consideration Additionally, balanced scorecard-based criteria are evaluated with the integrated hybrid multicriteria decision-making approach by using fuzzy analytic hierarchy process (AHP), fuzzy analytic network process (ANP) and fuzzy VIseKriterijumsa Optimizacija I Kompromisno Resenje methods Moreover, this evaluation is performed by using both decision makers’ evaluations and content analysis It is concluded that there is a significant difference in the results based on decision makers and content analysis Foreign banks have the best performance in decision makers’ evaluation, whereas there are different banks in the first ranks of the content analysis However, fuzzy AHP and fuzzy ANP give very similar results in ranking the banks according to the new service development competencies Furthermore, no banking type in Turkey has any priority over the others in all analysis Hence, a foreign bank has the best performance, whereas another foreign bank states on the last rank

59 citations

Journal ArticleDOI
TL;DR: A systematic approach to evaluation of new service concepts (NSCs) by integrating the merit of group analytic hierarchy process (AHP) in modeling multi-criteria decision making (MCDM) problems and the strength of rough set theory (RST) in handling subjectivity in concept evaluation is proposed.
Abstract: Highlights? Proposing a systematic approach to evaluation of new service concepts (NSCs). ? Integrating the merits of group analytic hierarchy process and the strengths of rough set theory. ? Measuring the feasibility of NSCs in terms of strategy, finance, market, technology, and implementation. One of the most crucial stages in the new service development (NSD) process is concept selection, which is characterized by newly generated alternatives and vaguely defined concept evaluation criteria. Although a number of factors have been found to be influential, a lacuna remains as to how to make a strategic decision based on influential factors. This study proposes a systematic approach to evaluation of new service concepts (NSCs) by integrating the merit of group analytic hierarchy process (AHP) in modeling multi-criteria decision making (MCDM) problems and the strength of rough set theory (RST) in handling subjectivity in concept evaluation. The suggested approach is designed to be executed in four discrete stages. First of all, a hierarchical AHP model for the evaluation of NSCs is constructed in terms of strategy, finance, market, technology, and implementation. Second, pairwise comparisons are made among criteria and sub-criteria, and preferences to NSCs with respect to the sub-criteria are obtained by domain experts. Third, the individual judgments obtained at the preceding stage are aggregated into group judgments. Finally, the NSCs are prioritized based on risk propensity of decision makers. A case study of the video game service is presented to illustrate the suggested approach. We believe that our method can promote consensus building on the promising NSCs.

59 citations

Journal ArticleDOI
TL;DR: The findings suggest that servitization leads to improved energy consumption and therefore enhances environmental performance, but had no effect on corporate sustainability disclosure and other environmental policies such as environmental assurance, emissions reduction policies, and environmental supply chain management.

57 citations

Journal ArticleDOI
TL;DR: In this article, the authors investigated how a manufacturer's efforts to become an advanced services provider can be comprehensively measured, and developed a framework for assessing the transformation journey towards becoming an advanced service provider.
Abstract: The purpose of this paper is to establish a framework for assessing the progress and outcome of a manufacturer’s transformation towards becoming a provider of ‘advanced services’ – a complex bundling of products and services, whereby manufacturers offer capabilities and outcomes instead of products alone ‘Advanced services’ represent the most complex offering in the current servitization trend among manufacturers However, current performance measures lack the breadth and focus to assess progress or outcomes, and so support research and practice of organisational transformation efforts required To address this gap the paper investigates how a manufacturer’s efforts to become an ‘advanced services’ provider can be comprehensively measured, and develops a framework for assessing the transformation journey towards becoming an ‘advanced services’ provider The research method is based on (1) a systematic literature review process to create a comprehensive set of service-related performance measures that are available to assess a manufacturer’s servitization efforts, followed by (2) an engagement with an expert panel to synthesise the identified measures and create a set of ‘advanced services’ performance measures The proposed framework is presented as a scorecard that can be used in practice to assess the progress and outcome of a manufacturer’s transformation towards becoming a provider of ‘advanced services’

56 citations


Cites background from "New service development: areas for ..."

  • ...In a few cases, that data is interrelated with external sources as required for benchmarking purposes (e.g. profit compared to major competitors (Gebauer, Gustafsson, and Witell 2011), relative market share (Menor, Tatikonda, and Sampson 2002))....

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Journal ArticleDOI
TL;DR: In this paper, the authors analyzed the innovation practices of 372 B2B product manufacturers and service providers and found that compared to product-focused firms, services-focused ones are overall less sophisticated in their innovation practices: they manage less explicitly for innovation, have lower innovation expectations, favor incremental innovation and, when they do initiate more innovative or radical projects, they spend less time taking them to market.

55 citations

References
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Journal ArticleDOI
TL;DR: In this paper, the authors consider the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning and examine some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space.
Abstract: This paper considers the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning. It examines some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space, and the effects of ecological interaction. Two general situations involving the development and use of knowledge in organizations are modeled. The first is the case of mutual learning between members of an organization and an organizational code. The second is the case of learning and competitive advantage in competition for primacy. The paper develops an argument that adaptive processes, by refining exploitation more rapidly than exploration, are likely to become effective in the short run but self-destructive in the long run. The possibility that certain common organizational practices ameliorate that tendency is assessed.

16,377 citations

Journal ArticleDOI
TL;DR: In this paper, the authors organize the product development literature into three streams of research: product development as rational plan, communication web, and disciplined problem solving, and synthesize research findings into a model of factors affecting the success of product development.
Abstract: The literature on product development continues to grow. This research is varied and vibrant, yet large and fragmented. In this article we first organize the burgeoning product-development literature into three streams of research: product development as rational plan, communication web, and disciplined problem solving. Second, we synthesize research findings into a model of factors affecting the success of product development. This model highlights the distinction between process performance and product effectiveness and the importance of agents, including team members, project leaders, senior management, customers, and suppliers, whose behavior affects these outcomes. Third, we indicate potential paths for future research based on the concepts and links that are missing or not well defined in the model.

3,824 citations


"New service development: areas for ..." refers background in this paper

  • ...…that a common set of factors—development process, market/environment, organizational and strategic—impact NPD performance (Schilling and Hill, 1998; Brown and Eisenhardt, 1995; Montoya-Weiss and Calantone, 1994) and NSD performance (de Brentani, 1995; Cooper et al., 1994; Cooper and de Brentani,…...

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  • ...This challenge is particularly difficult given the diverse literature reporting NPD research (see Krishnan and Ulrich, 2001; Wind and Mahajan, 1997; Brown and Eisenhardt, 1995)....

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  • ...The extant NPD research does not have all the answers to the questions of product or service development, but there is a foundation that can be drawn on (see integrative reviews by Krishnan and Ulrich, 2001; Schilling and Hill, 1998; Wind and Mahajan, 1997; Brown and Eisenhardt, 1995)....

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  • ...Underlying the empirical work addressing the antecedents of development performance is the belief that a common set of factors—development process, market/environment, organizational and strategic—impact NPD performance (Schilling and Hill, 1998; Brown and Eisenhardt, 1995; Montoya-Weiss and Calantone, 1994) and NSD performance (de Brentani, 1995; Cooper et al....

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Journal Article
TL;DR: Porter as discussed by the authors argues that the Internet is not disruptive to most existing industries and established companies and, contrary to recent thought, the Internet itself will be neutralized as a source of advantage.
Abstract: Many of the pioneers of Internet business, both dot-coms and established companies, have competed in ways that violate nearly every precept of good strategy. Rather than focus on profits, they have chased customers indiscriminately through discounting, channel incentives, and advertising. Rather than concentrate on delivering value that earns an attractive price from customers, they have pursued indirect revenues such as advertising and click-through fees. Rather than make trade-offs, they have rushed to offer every conceivable product or service. It did not have to be this way--and it does not have to be in the future. When it comes to reinforcing a distinctive strategy, Michael Porter argues, the Internet provides a better technological platform than previous generations of IT. Gaining competitive advantage does not require a radically new approach to business; it requires building on the proven principles of effective strategy. Porter argues that, contrary to recent thought, the Internet is not disruptive to most existing industries and established companies. It rarely nullifies important sources of competitive advantage in an industry; it often makes them even more valuable. And as all companies embrace Internet technology, the Internet itself will be neutralized as a source of advantage. Robust competitive advantages will arise instead from traditional strengths such as unique products, proprietary content, and distinctive physical activities. Internet technology may be able to fortify those advantages, but it is unlikely to supplant them. Porter debunks such Internet myths as first-mover advantage, the power of virtual companies, and the multiplying rewards of network effects. He disentangles the distorted signals from the marketplace, explains why the Internet complements rather than cannibalizes existing ways of doing business, and outlines strategic imperatives for dot-coms and traditional companies.

3,558 citations


"New service development: areas for ..." refers background in this paper

  • ...The Internet dramatically reduces these barriers, as summarized in Table 3 ( Porter, 2001 )....

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  • ...A differentiation strategy is difficult to attain in a service environment where innovations are quickly and easily copied ( Porter, 2001 )....

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Book
01 Jan 1986
TL;DR: Innovation is defined as "the development and implementation of new ideas by people who over time engage in transactions with others within an institutional order" as mentioned in this paper, where the authors focus on four basic factors new ideas, people, transactions, and institutional context.
Abstract: Innovation is defined as the development and implementation of new ideas by people who over time engage in transactions with others within an institutional order. This definition focuses on four basic factors new ideas, people, transactions, and institutional context. An understanding of how these factors are related leads to four basic problems confronting most general managers: 1 a human problem of managing attention, 2 a process problem in managing new ideas into good currency, 3 a structural problem of managing part-whole relationships, and 4 a strategic problem of institutional leadership. This paper discusses these four basic problems and concludes by suggesting how they fit together into an overall framework to guide longitudinal study of the management of innovation.

3,513 citations


"New service development: areas for ..." refers background in this paper

  • ...Focusing on NPD, Van de Ven (1986) notes four problems related to the management of development and innovation efforts....

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  • ...Focusing on NPD, Van de Ven (1986) notes four problems related to the management of development and innovation efforts....

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