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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: It was possible to identify the most important service recovery dimensions from the perspective of a manufacturing company (“speed of recovery”, followed by “empowerment”) and the respective degree of application according to the respective level of application.
Abstract: Purpose – The aim of this study is to propose a method for assessing the service recovery performance of a manufacturing company with value‐added services Service recovery performance is assessed by an index with value ranges from 0 to 100 percentDesign/methodology/approach – A tree‐like structure was built to represent service recovery This structure was weighted according to the degrees of each dimension's relative importance using the analytic hierarchy process (AHP) method After construction, the dimensions were evaluated by considering how much they were applied during the process; the service recovery index and the gaps between importance and application were determined The method was tested in a multinational manufacturing company and in two buyer companiesFindings – It was possible to identify the most important service recovery dimensions from the perspective of a manufacturing company (“speed of recovery”, followed by “empowerment”) and the respective degree of application according to the

34 citations

Journal ArticleDOI
TL;DR: This paper investigated sources of innovation in the hospitality industry and tested the lead-user method borrowed from the manufacturing industry to extract innovative service ideas from the market before they materialize as competing market offerings using a downtown hotel as an empirical example.
Abstract: When service firms are challenged by their aging brands to become “innovation oriented,” they depend in part on key organizational competencies, such as employee competency and market orientation These competencies are at the core of innovation in a service firm such as a hotel or a restaurant franchise An innovation-oriented service franchise knows how to listen to its employees and customers; however, choosing which customer or employee to listen to might be paramount to finding radical innovative ideas Learning from the past, this article investigates sources of innovation in the hospitality industry and tests the lead-user method borrowed from the manufacturing industry to extract innovative service ideas from the market before they materialize as competing market offerings Using a downtown hotel as an empirical example, this study shows that not only are innovative service ideas present in the marketplace, but also that the best ideas most likely exist within the minds of current and past dissati

33 citations

Journal ArticleDOI
TL;DR: This study increases the understanding of R&D networks by presenting an empirically grounded process model of the formation of such networks and highlights the importance of the network webber both in triggering the formation process and in managing the process.
Abstract: Because of fundamental changes in the competitive environment, the amount of resources and knowledge needed in research and development (R&D) activities has become overwhelming for a single organisation. Moreover, new technologies create lucrative new possibilities for new service development, which are out of reach for a single organisation. Thus, there is a strong need to perform R&D activities in networks. This study increases the understanding of R&D networks by presenting an empirically grounded process model of the formation of such networks. The model has three main elements: the initial conditions, the role of network webber and the sub-processes through which the formation progresses. The process model highlights the importance of the network webber both in triggering the formation process and in managing the process. Moreover, the model suggests a view of the process that is overlapping and iterative, i.e., the sub-processes of enabling the network, acquiring actors, assuring continuity, formal ...

33 citations

Proceedings Article
15 Nov 2011
TL;DR: This work proposes a new framework which structures service innovation capability into the areas of sensing, seizing, and transformation, and identifies and describes the key activities in all of these three areas based on an analysis of existing literature.
Abstract: Service organizations face the challenge of offering their customers continuously improved or completely new services and, hence, require service innovations to sustain themselves in the market We interpret the design and implementation of new or enhanced service offerings as a dynamic capability because the service organization is required to sense impulses for innovation, seize meaningful ways for change, and to finally transform its operational capabilities to the desired state Accordingly, we propose a new framework which structures service innovation capability into the areas of sensing, seizing, and transformation We further identify and describe the key activities in all of these three areas based on an analysis of existing literature With this conceptual paper, we contribute to a better understanding of service innovation capability by proposing a novel framework which is grounded in dynamic capability theory This framework is beneficial to both practice and academia It offers an overview of service innovation capability areas and activities against which service organizations can critically reflect their service innovation initiatives As for academia, it stipulates promising directions for future research

33 citations


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

  • ...This paper was written in the context of the research project KollaPro (promotional reference 01FL10004) which is funded by the German Federal Ministry of Education and Research (BMBF)....

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01 Jan 2010
TL;DR: A review of the current state of the art in user involvement in service innovations is presented, based on three different research viewpoints: marketing and business research, human-centred design and media research.
Abstract: The importance of user orientation in innovation activities is nowadays emphasized not only in business life but also in political and societal discussions. In today’s competed and changing market situations, one promising way to support market success are innovations originating from the needs of the customers. The traditional division to product-oriented and service-oriented business is blurring as traditional products are equipped with service elements that bring additional value to customers. Service orientation in business changes the connection to the customers: it is not enough to be able to sell the product to the customer once but the service customer has to be kept satisfied every day. Service providers need to know their customers better and to offer them better possibilities to be involved in service development. In this report we present a review of the current state of the art in user involvement in service innovations. The review is based on three different research viewpoints: marketing and business research, human-centred design and media research. In each of these research fields we can see a similar trend of changing the attitude towards users; from passive research object to an active design partner, potential resource and co-producer. The transition from product design to service design requires that design and usage should be more firmly connected – the design does not end when the service is launched but the design continues in use where the users are creating content for the service. The users shape usage practises in actual use and this may indicate needs to refine the service. That is why service providers should have good channels to monitor the users and to listen to their ideas and feedback. In addition to user involvement in the actual design process and during use, users should increasingly be involved also in early innovation phases, in ideating what kinds of services should be designed for them and with them. Different users can give different contributions to service innovation and their motivations and preferred ways to participate vary. Different roles in the innovation process should be available to user groups such as lead users, ordinary users, advanced users, critical users and non-users. User communities are increasingly important sources of innovations, either existing communities or new communities that are grown around the service. Customer interaction may shorten the development cycle and improve the quality of innovations. Successful user involvement, however, requires that the organisation has methods and processes to gather and analyse user data as well as to integrate user data in the design process. User involvement is especially useful in the early stages of service development processes due to their high uncertainty and low formalisation. Direct user-designer interaction helps in transferring user feedback and ideas to service innovations. Designers’ direct interaction with users is also beneficial as it seems to change designers’ mindset smoothly from technical features to user experience, thus boosting better designs. User experience of the service is improved when users themselves can contribute to developing the service.

32 citations


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

  • ...Service marketing literature emphasizes the role of service process newness in addition to service outcome newness (Menor et al. 2002), and also provides models that can be used to analyse existing and new services....

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  • ...Menor et al. (2002) present the same idea by using concepts external and internal newness adopted from Tatikonda & Zeithaml (2001): external newness captures the novelty as the customer perceives it and in contrast, internal newness emphasizes what must be changed or developed internally for the new service to be operational (for example personnel training, information flows, physical infrastructure and facilitating goods). In addition to these classifications of separate service innovations, Paswan et al. (2009) take a broader view and present a typology for service innovation strategy....

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  • ...Service innovation characteristics and research fields is indirectly influencing NSD speed and IT facilities are influencing both effectiveness and speed of NSD. Menor et al. (2002) suggest that despite the differences, many operational guidelines could be adopted or modified from traditional New Product Development (NPD) and manufacturing studies, for example requirement specification and concept of modularity could be modified and used more actively also in the service development context....

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  • ...However, service development process models usually contain more stages than product development process models, and many of the models provide some extensions or additions to the stages of basic product development models (Menor et al. 2002, Nijssen et al. 2006)....

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  • ...…characteristics and research fields is indirectly influencing NSD speed and IT facilities are influencing both effectiveness and speed of NSD. Menor et al. (2002) suggest that despite the differences, many operational guidelines could be adopted or modified from traditional New Product…...

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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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