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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: In this paper, the authors identify the dimensions of a firm's service innovation competence and establish the relationship between these dimensions and customer-oriented service innovation configurations and customer adoption, using interviews of senior level managers from service firms from three sectors.
Abstract: Purpose This paper aims to identify the dimensions of a firm’s service innovation competence. This paper also aims to establish the relationship between a firm’s service innovation competence dimensions and customer-oriented service innovation configurations and customer adoption. This study probes the supply side of service innovation to assess the key drivers or capabilities that influence the service innovation process at the firm level. Design/methodology/approach This study uses the triangulation method using existing theoretical concept supplemented by 18 in-depth interviews of senior level managers from service firms from three sectors – hospitality, mobile telecommunication services and financial services. The interview findings were supplemented by 12 service innovation case studies (four from each sector). Content analysis of in-depth interviews was performed using three raters, and inter-rater reliability was tested. Case studies were categorized in terms of the strength of the innovation competence dimension observed. Findings Based on the content analysis of the interviews and categorization of case study observations, six distinct dimensions of the firm’s service innovation competence were identified. Four attributes of each dimension were also identified. Based on the interview insights and case observations, seven propositions are suggested, and a conceptual framework is presented to establish the relationship between the firm’s service innovation competence dimensions and service innovation configurations and customer adoption. Research limitations/implications This study was conducted in the Indian context and remains to be tested using quantitative research. Therefore, researchers are encouraged to test the proposed framework in a different geographical context to ascertain its validity. Practical implications The conceptual framework presented in the paper may help managers of service firms in building innovation capabilities that are relevant to development of customer-oriented innovations. This would lead to better customer adoption of their new services. Originality/value This paper fills an important knowledge gap regarding the dimensions of a critical supply-side component of service innovation, that is, innovation competence. Clear identification of competence dimensions and their relationship with customer adoption extends the current knowledge on service innovation.

18 citations

01 Jan 2013
TL;DR: This study uniquely bridges all actors of the value chain to the user-centered design of an augmented reality interior design service: consumers, interior design enthusiastics and professional interior designers, but also furniture retailer and digital service providers.
Abstract: This paper presents key findings on user expectations of an augmented reality interior design service, a service which combines features of social media, augmented reality (AR) and 3D modeling to ambient home design. Our study uniquely bridges all actors of the value chain to the user-centered design of an augmented reality interior design service: consumers, interior design enthusiastics and professional interior designers, but also furniture retailer and digital service providers. We examine the benefits and challenges of applying user-centered methods with three different target user groups; consumers, prousers and professionals. This paper also describes desired features of an AR interior design service for different target groups, and discusses their technical and practical feasibility. User expectations for AR interior design services were studied with a scenario-based survey, co-design sessions and focused interviews. Altogether 242 consumers and pro-users responded the ambient home design service on the survey. Thereafter, special co-creation sessions with five consumers and two professional interior designers were conducted to develop the concept further with the target groups. In addition, we interviewed four different commercial actors on the field to deepen insights on product expectations. The combination of different user-centered methods proved valuable in the early phases of concept design. It appears that there is a demand for easy-to-use design tools both for consumers and professional users. However, our research confirms that consumers and professionals have different needs and expectations for home design system, and therefore target users should be included in the design process with appropriate methods. Commercial actors see viable business model as most substantial attribute for the service, which must be taken into account in service design as well.

18 citations

Journal ArticleDOI
18 Dec 2018
TL;DR: In this article, a model that assists the transformation of products into services is proposed, which is at a level that can be directly applied by small and medium enterprises (SMEs).
Abstract: The economies of the industrialized world have become dominated by services. Many manufacturing companies have changed from producing products to providing services. However, many companies still lag behind in this transformation. It is observed that most of the published methodologies are at an advanced level and provide minimal assistance to help managers and especially the managers of small and medium enterprises (SMEs) who are interested in easy-to-use methodologies for transforming their product range. Therefore, a model that assists the transformation of products into services is proposed, which is at a level that can be directly applied by SMEs. A utility-driven approach is followed to establish the model that consists of seven steps. In the initial steps, a product that is to be servitized is selected and broken down into its utility features and customer barriers. Furthermore, options for increasing utility and reducing barriers are presented such that the overall tangibility of the existing product is reduced. This reduction in tangibility in both physical and psychological dimensions is defined as servitization in the present study. This article presents a practical framework for the transformation of company offerings so that they are gradually adjusted to a service economy.

18 citations

Journal ArticleDOI
TL;DR: In this article, the authors examined the relationship between innovations and corporate reputation with respect to customer non-financial performance independently and empirically examined the combined effect of service innovation and reputation (as a mediator) on customer nonfinancial performance.
Abstract: Numerous literatures examined the relationship between innovations and corporate reputation with respect to customer non-financial performance independently. The combined effect of service innovation and corporate reputation (as a mediator) on customer non-financial performance was not empirically examined before. Testing this path variance in a service sector like telecommunication is important because in a multicultural country like India with its oligopolistic market nature it is difficult to determine customer satisfaction and build long-term relationship with them. The result would help in understanding the importance of bringing together innovation and reputation and how it can enhance the non-financial performance. Further, decision makers can note that when they frequently innovate and build reputation it makes customers satisfied, thereby framing a long-term relationship that helps to sustain in the competitive environment.

18 citations

Journal ArticleDOI
TL;DR: This paper presents the first empirical tests of the roles of two important factors (task structuring and expertise sharing) in improving the quality of expert predictions of the future success of new Internet services and indicated a significant substitution effect between the factors.

17 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,…...

    [...]

  • ...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)....

    [...]

  • ...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)....

    [...]

  • ...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....

    [...]

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....

    [...]