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: In this paper, the authors analyzed the differences between services and products based on factors associated with the innovation process and found that the client's participation in the process of innovation is greater in service firms that possess a larger innovation gap and are more proactive.
Abstract: The research performs a complete analysis of the differences between services and products based on factors associated with the innovation process. The research analyses the factors/dimensions and their repercussions that determine firms' capacity to adapt to their environment and observes how the critical dimensions of the innovation process influence the gap generated by the difference in the firm's current level of innovation and the level developed by the competition. The results show that the client's participation in the process of innovation is greater in service firms that possess a larger innovation gap and are more proactive. The opposite is the case for formalization and decentralization, which occur in lower levels in this kind of firm. Further, decentralization and formalization are lower in service than in manufacturing firms.
11 citations
Cites methods from "New service development: areas for ..."
...We identify and define these dimensions based on studies that have advanced different constructs for new service development (Brown & Eisenhardt, 1995; De Brentani, 1995; Froehel, Roth, Chase, & Voss, 2000; Menor, 2000; Menor et al., 2002)....
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Dissertation•
21 Jun 2019
TL;DR: In this article, the authors explore the contributions of service design to the development of new health services, with particular emphasis on the initial stages of the service concept, and use a design-based project which was undertaken in collaboration with the innovation unit of a new Danish hospital.
Abstract: In the service economy, there is increasing focus on the development of innovative services
and healthcare systems are not an exception. Health care organisations, such as hospitals, are
finding themselves in a position of needing to design new services that are suitable to the
current challenges, such as the management of chronic illness and a shift toward salutogenic
models of health.
Simultaneously the design discipline of Service Design, has been gaining increasing attention
with regards to service improvement and delivery, due to its human oriented and creative
approach to problem solving. Design scholars have aligned its principles with a Service
Dominant logic of conceptualising services.
In this dissertation, I explore the contributions of service design to the development of new
health services (New Service Development), with particular emphasis on the initial stages of
the process: the service concept.
I use a design-based project which was undertaken in collaboration with the innovation unit of
a new Danish hospital, to conceptualise new decentralised services for citizens with chronic
illnesses, that would take place in 2030.
The design project is discussed with respect to how service design added value to the process
of concept generation, how this is relevant to New Service Development and I relate it to a
Service Dominant Logic for healthcare.
Keywords: service design, healthcare, service dominant logic, service innovation
11 citations
01 Jan 2017
TL;DR: The proposed EDIT (Experiences through Design, Innovation and Touch points) model provides a structured approach to new service development and can be approached from design thinking and a traditional innovation adoption process and is flexible to accommodate different firm types andnew service development skills.
Abstract: There is increased interest both by practitioners and academics in the design aspect when developing new tourism services. In particular the design of travel experiences has attracted widespread research interest over the past few years. This chapter reviews popular innovation types and experience design aspects such as design thinking and blue printing. The goal of this chapter is to merge the competing approaches towards tourism innovation; technological and administrative innovation applied to increase efficiencies and reduce cost versus customer-centric design thinking. The proposed EDIT (Experiences through Design, Innovation and Touch points) model provides a structured approach to new service development. Most importantly the model can be approached from design thinking and a traditional innovation adoption process and is flexible to accommodate different firm types and new service development skills. This chapter also discusses future theoretical and empirical studies.
11 citations
TL;DR: An instrument for service opportunity analysis based on quantitative data and systematic processes is proposed in line with the notions of service engineering to promote consensus building for promising service opportunities and enhances the efficiency of the fuzzy front-end stages of new service development.
Abstract: Successful innovation in services is considered a key factor for organisational sustainability. However, existing customer- and expert-centric approaches are becoming time-consuming and labour-intensive as the number and complexity of services increase. To counter this, an instrument for service opportunity analysis based on quantitative data and systematic processes is proposed in line with the notions of service engineering. At the heart of the suggested approach is text mining to extract the meanings of service documents and the local outlier factor to identify novel services based on quantitative indicators. A case study of mobile services is exemplified. The suggested approach promotes consensus building for promising service opportunities and enhances the efficiency of the fuzzy front-end stages of new service development.
11 citations
05 Dec 2010
TL;DR: This paper attempts to define the life cycle of healthcare services and explores the use of modeling and simulation in supporting healthcare service development and management, and particularly explores a number of exemplars of how modeling was used to support earlier stages of the service life cycle.
Abstract: Over the past decades simulation has been recognized as a vital tool for solving problems within the healthcare sector, almost catching up with other areas. It is evident that healthcare systems are rapidly evolving into complex and dynamic environments whilst bearing a multitude of stakeholders. Simulation has originally emerged from military and manufacturing applications that mainly follow sequential processing with pre-specified targets. Such an approach is too rigid and irrelevant to the complexity and dynamism of healthcare systems, where lack of understanding is a common feature. This is mainly attributed to lack of understating of the life cycle of healthcare services. In this paper we attempt to define the life cycle of healthcare services and explore the use of modeling and simulation in supporting healthcare service development and management. We particularly explore a number of exemplars of how modeling was used to support earlier stages of the service life cycle.
10 citations
Cites background from "New service development: areas for ..."
...Most new service development (NSD) literature (Menor, Tatikonda, and Sampson 2002) tend to distinguish between design and development....
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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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