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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TL;DR: The research contributes to market strategy and business modelling research by introducing BM Stress Testing as a new method that can achieve and maintain agility regarding BM uncertainties.
Abstract: Business Model (BM) Innovations aim at making systemic changes in the business logic of companies when they are bringing innovative products and services to the market. Companies should be sensitive to changes in their business environment and able to modify their BMs in an agile way. To assess the agility of BMI during specific market entry situations, this paper uses a method that stress tests the value proposition and the components of a BM against contingent uncertainties. We present three qualitative case studies of companies that differ in their market entry approach. Starting from their strategic orientation, these case companies’ stress test their Business models and BM components, using a scenario-based identification of uncertainties. The BM Stress Test method contributes to a quick understanding of the components their BM needs to monitor, reconsider, or improve. Such stress testing helps enhance business agility. The research contributes to market strategy and business modelling research by introducing BM Stress Testing as a new method that can achieve and maintain agility regarding BM uncertainties.
31 citations
Cites background from "New service development: areas for ..."
...Examples are New Product Design (Takeuchi and Nonaka 1986), Stage- Gate model (Cooper 1990), Quality Function Deployment (Cohen 1995; Chan and Wu 2002), Service Blueprinting (Shostack 1984), Service Concept Analysis (Goldstein et al. 2002) and New Service Design (Menor et al. 2002)....
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TL;DR: A ‘user‐centric service map’ is proposed, which first visualizes the portfolio of existing services based on the dictionary of potential needs and then helps to investigate vacuums that can provide a concrete shape for new service opportunities.
Abstract: Today, service innovation is just as important as product innovation The ideation of service innovation, vis-a-vis product innovation, is user-oriented, rather than maker-oriented Thus, capturing and understanding user context is key to being able to offer personalized and relevant services, and further identify new service opportunities Therefore, a user-centric approach is needed in new service development, especially in the era of ubiquitous service There exists a rich literature on how to incorporate customers into new service development, but most has focused only on their expressed needs, and failed to identify potential needs In response, this paper proposes a ‘user-centric service map’, which first visualizes the portfolio of existing services based on the dictionary of potential needs and then helps to investigate vacuums that can provide a concrete shape for new service opportunities The suggested approach is composed of three parts: first, constructing a potential needs dictionary, second, developing a service map, and finally, identifying new service opportunities A case study of Apple's App Store services is conducted to verify the feasibility and utility of the proposed approach and offer strategic implications
31 citations
Posted Content•
TL;DR: The paper provides a structured literature review and proposes a conceptual framework for studying the interconnection of the development and adoption of BB, EG and EC, and shows the interconnections of various concepts.
Abstract: The paper discusses the interconnection of the adoption and diffusion of broadband (‘BB’), e-government (‘EG’) and e-commerce (‘EC’) services. It provides a structured literature review and proposes a conceptual framework for studying the interconnection of the development and adoption of BB, EG and EC. The interconnections of various concepts are shown along with several hypotheses that are thoroughly theoretically grounded. The role of different technology acceptance models is discussed, while the importance of including various aspects in policy preparation analyses is emphasized.
31 citations
TL;DR: In this article, the authors examined the role of market research and technology in the development of Internet banking services and how consumers are involved in this process, and developed an innovative conceptual framework within the context of new service development.
Abstract: Technology has become of one the most significant strategic weapons for banks to survive in increasingly competitive bank markets. Today, banks in Turkey are competing aggressively to introduce new types of products and services that are driven mostly by technology. Internet banking is the latest and most innovative technology based service offered by the banks in Turkey. Yet, as users of Internet banking actively participate in the service provision, a customer oriented design according to needs and skills of the various classes of consumers becomes a major necessity to accelerate the diffusion of the service. Against this background, this research examines the role(s) market research and technology play in the development of Internet banking services and how consumers are involved in this process. The key finding of this study is that the banks involved in this research were developing and introducing Internet banking services with very limited scientific market research. Technology had the dominant role in this process. Market research was utilised only after the commercialisation of the service had taken place. The conceptual framework developed for this research identified the three key roles consumers play in the development of Internet banking services. This study contributes to the existing literature by developing an innovative conceptual framework within the context of new service development. The key findings of this study provide implications for the banking industry and future research.
31 citations
Cites background or methods or result from "New service development: areas for ..."
...Despite the increasing significance of technology in the service sectors, the role that technology plays in NSD and in particular how the Internet could potentially impact the design and development of new services, is still one critical area that requires further exploration (Menor et al. 2002; Bullinger et al. 2003)....
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...Indeed, the role of technology in the development of innovative products and/or serv- ices has been overestimated in the previous studies (Bullinger et al. 2003; Menor et al. 2002)....
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...(1982) has been the most widely applied model in the context of service innovation (Menor et al. 2002)....
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...important to note that NSD processes for Internet-based services must be highly sensitive to the present environment, including new technologies, new competitive threats, new innovations of competitors and new expectations and preferences of customers (Menor et al. 2002)....
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...Until recently, due to the distinctive nature and characteristics of services such as intangibility, heterogeneity and simultaneity, the development of new services has been regarded as an ad hoc process (Menor et al. 2002)....
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TL;DR: In this paper, an inductive analysis was applied to 13 instances of activities related to the productisation of services, with secondary data being analysed to identify practices relevant to SP and to examine their significance.
Abstract: Purpose
The previous literature has indicated that the productisation of services may play a role in service management, although a certain level of obscurity still surrounds the concept. Therefore, the purpose of this paper is to clarify the meaning of service productisation (SP) as well as to contribute to a greater understanding of the concept.
Design/methodology/approach
An inductive analysis was applied to 13 instances of activities related to the productisation of services, with secondary data being analysed to identify practices relevant to SP and to examine their significance. The analysis is guided by an extensive literature review.
Findings
SP has been found to play a role in systematising and tangibilising a service offering and its related processes as well as in formalising the processes and service offerings. The potential elements of SP have been identified and supporting evidence has been provided. The findings indicate that SP has a specific focus on the offering and its related processes, with the aim being to create a service product that can be sold, delivered and invoiced. SP may utilise various practices and techniques, and customer orientation also plays a significant role. A typology of SP has been created by reflecting on its commercial and technical aspects.
Practical implications
This study has important implications for the service industry as it provides a structure and key considerations for productising services.
Originality/value
This study is one of the first to seek evidence for the concept of SP from multiple instances of SP as well as an extensive literature base. The typology created provides a context for discussing SP as well as reflecting on its commercial and technical aspects.
30 citations
Cites background from "New service development: areas for ..."
...Service blueprints thus assist in mapping the steps of a service and in tangibilising the service concept (Menor et al., 2002)....
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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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