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.
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TL;DR: In this paper, the authors examine how customer value may be affected by deploying radio frequency identification (RFID) technologies within service environments and demonstrate that individuals will recognize far more value from RFID service applications than just cost savings and inventory availability.
Abstract: This article examines how customer value may be affected by deploying radio frequency identification (RFID) technologies within service environments. Business articles promote operational cost savings and improved inventory management as key benefits of deploying RFID. In response, service firms are using RFID to reengineer service transactions and customer touchpoints. Customers may view these RFID applications to offer both benefits and drawbacks. This article demonstrates that individuals will recognize far more value from RFID service applications than just cost savings and inventory availability. The article analyzes qualitative survey responses on the value gained from RFID to identify a broad list of value objectives—benefits and drawbacks—associated with RFID service applications. The article contributes to academic literature by providing salient value dimensions for return on investment models of service RFID applications and for future empirical analyses of means-ends and value-profit chain models. Managers can use the list of dimensions to develop rich business cases for evaluating the benefits and costs from enhancing service operations with RFID. The identified drawbacks also provide managers with a resource for understanding potential risks of RFID applications.
40 citations
TL;DR: In this paper, the authors explicitly examine exploration and exploitation related to customers and markets, and explain the logic of exploration-exploitation with respect to two market-related resource classes, the firm's knowledge of markets and customers (market/customer intelligence) and market actors' knowledge of and bonds to the firm (brands/bonds) as viewed in combination with the resource class of technologies, processes, and products.
Abstract: Purpose – Long‐run corporate success requires engagement in two types of innovative activities: exploitation and exploration. However, earlier research has focused on exploration and exploitation concerning a firm's technologies. The purpose of the present article is to explicitly examine exploration and exploitation related to customers and markets.Design/methodology/approach – The article is conceptual in nature, based on marketing, strategic management, and organization literatures.Findings – The article explains the logic of exploration‐exploitation with respect to two market‐related resource classes – the firm's knowledge of markets and customers (market/customer intelligence) and market actors' knowledge of and bonds to the firm (brands/bonds) – as viewed in combination with the resource class of technologies, processes, and products (technologies/processes). The distinction of these three resource classes enables a three‐dimensional conceptualization of the ideal types of a firm's business developm...
39 citations
Cites background from "New service development: areas for ..."
...In our opinion, this provides advantage over traditional two-dimensional matrixes. et al., 2005) , operations management (e.g. Jayanthi and Sinha, 1998; Menor et al., 2002), and technology management (e.g. Geiger and Makri, 2006; Gilsing and Duysters, 2008)....
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TL;DR: In this article, the authors provide a SAT (Stage-Activity-Technique) framework for NSD stages, activities, and techniques based on a literature review and trend analysis and divide the NSD process into five stages: service identification, service value net formation, service modeling, service implementation, and service commercialization.
Abstract: New service development (NSD) is getting important for companies that wish to gain a competitive advantage on service-driven markets. While research on NSD has grown rapidly over the last decade, many studies have been highly fragmented and concentrated on different innovation issues. Few studies have focused on the stages, activities, and techniques of NSD. In addition, the NSD process is delivered through service value net, and can often be carried out by multiple companies. Therefore, this study aims to provide a SAT (Stage-Activity-Technique) framework for NSD stages, activities, and techniques based on a literature review and trend analysis. This study divides the NSD process into five stages: service identification, service value net formation, service modeling, service implementation, and service commercialization. In addition, the NSD process is more likely to be spiral in form for new services that are examined. The NSD process is also likely to be refined by service providers and customers to in...
39 citations
TL;DR: In this paper, the authors focus on the customer experience as an active resource for developing service systems and use a video-based methodology for collecting naturally occurring data and a think-aloud approach for collecting real-time user perceptions.
Abstract: Purpose – A recurring problem for research into services is the question of validity – i.e. knowing which quality factors really are relevant for measurement and analysis. Retrospective data collection of customer perceptions has shortcomings in “fuzzy” and dynamic service processes. This paper focuses on the customer experience as an active resource for developing service systems.Design/methodology/approach – Using a video‐based methodology for collecting naturally occurring data and a “think‐aloud” methodology for collecting real‐time user perceptions, the study reveals concrete cues in the service environment that determine quality from a customer perspective. The study then presents an empirical case to test and develop this methodology.Findings – The study involves able‐bodied and disabled passengers using public transport and identifies environmental and processual factors that are critical for the customer base.Research limitations/implications – The study demonstrates the potential for more advanc...
39 citations
TL;DR: In this paper, the authors investigated the usage pattern of NSD tools and identified the factors that influence their adoption by integrating the theory of planned behaviour (TPB) and the literature on organizational adoption of innovation.
Abstract: – A number of new service development (NSD) tools have been proposed to facilitate NSD processes. Despite the proved values, NSD tools are not used frequently. The purpose of this paper is to investigate the usage pattern of NSD tools and to identify the factors that influence their adoption., – By integrating the theory of planned behaviour (TPB) and the literature on organizational adoption of innovation, a framework was developed. Empirical data from financial institutions in Singapore and Taiwan were collected. Partial least squares was used to test the model comprising both reflective and formative constructs., – The framework shows satisfactory predictive power. Attitude, subjective norm, and perceived behaviour control are significantly related to behaviour intention. Perceived usefulness and perceived ease of use are antecedents of attitude. Competitive pressure influences subjective norm. Perceived behaviour control is determined by compatibility and resource commitment., – TPB can be applied at the firm level by treating the opinion of managers as the proxy of that of the organization. Findings are limited to the small sample size and a focus on only financial services., – Only a small group of NSD tools are used frequently in the firms surveyed. Service firms should pay more attention to the tools available and the factors associated with their adoption., – The paper identifies factors worth noticing when researchers and practitioners develop and implement NSD tools. Also, the data confirmed the appropriateness of the extension of TPB to predict organizational adoption behaviour.
38 citations
References
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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
6,797 citations
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 1986TL;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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