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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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Proceedings Article
01 Jan 2014
TL;DR: This work conducted six case studies to investigate how firms orchestrated service innovation, focusing on the design of the service architecture and its relationship to enterprise systems.
Abstract: Service science perspectives highlight the central role of information technology (IT) in transforming the design and delivery of services. To discern the mechanisms through which IT impacts service innovation, we explore the dynamics of the relationship between enterprise IT and service architectures, and how these dynamics influence the performance of service innovation projects. We conducted six case studies to investigate how firms orchestrated service innovation, focusing on the design of the service architecture and its relationship to enterprise systems. We synthesize the case findings to develop a set of propositions on the antecedents and consequences of fit (or misfit) between service architecture and enterprise IT architecture. We then study how the case firms attempted to achieve congruence between the service and system architectures— both in design and in operation—by viewing the design moves they made as efforts to build and strike digital options.

7 citations


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

  • ...In the operations management literature, scholars have gained insights by applying concepts that have traditionally informed IT systems design, such as modularity and architecture, to the design of service systems (Menor et al. 2002; Voss and Hsuan 2009)....

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Dissertation
01 Jan 2007
TL;DR: Cusumano et al. as discussed by the authors explored economies of scale and strategic differentiation in services via an inductive field-based case study of the world's largest casino gaming company, Harrah's Entertainment, and concluded that scale and differentiation can be combined through the strategic use of information technology in a manner that increases customer switching costs, resulting in improved profitability and returns.
Abstract: This dissertation is focused on the topic of service innovation and explores economies of scale and strategic differentiation in services via an inductive field-based case study of the world’s largest casino gaming company, Harrah’s Entertainment. It includes comparisons to services firms in other industries such as distribution/logistics (UPS) and for-profit/online education (Apollo Group/University of Phoenix). The findings suggest that scale and differentiation (considered by many to be mutually exclusive in services) can be combined through the strategic use of information technology in a manner that increases customer switching costs, resulting in improved profitability and returns. The limitations of standardization-only scale-oriented strategies are discussed, and the dissertation concludes with a description of the three key components needed by any firm seeking to employ a strategy of scalable service differentiation: (1) a loyalty program, or other means of linking specific transaction data with specific customers, (2) an analytic engine that determines the ranking/prioritization of customers and the criteria upon which to differentiate services, and (3) a set of information technology tools that automate consistent differentiated service delivery across a company’s touch-points with its customers. Thesis Supervisor: Michael A. Cusumano Title: Sloan Management Review Distinguished Professor of Management

7 citations

Joe Rubleske1
01 Jan 2012
TL;DR: In this paper, a temporal model of mindfulness around new service conception in libraries is proposed, which depicts library administrators as active producers of new service concepts, and the model posits that the innovative library administrator continuously identifies new customer needs and new external solutions through seven types of mindful interactions.
Abstract: The organizational ability to innovate is widely acknowledged as crucial to sustained success. For libraries and other service providers, innovation entails the continuous development of new services that propose value to customers. This new service development process can be understood as comprising a “front end,” in which new service ideas are conceived and developed, and a “back end,” in which selected ideas are implemented. Our understanding of the former – that is, of new service conception in libraries – is particularly underdeveloped. To build a conceptual foundation for research in this area I used qualitative data collection techniques and constant-comparison analysis within the framework of a comparative, embedded case study. Fourteen new service ideas conceived by three case organizations – two public library systems and one library consortium – served as the units of analysis. The model that emerged from the data – a “Temporal Model of Mindful Interactions Around New Service Conception” – depicts library administrators as active producers of new service concepts. More specifically, the model posits that the innovative library administrator continuously identifies new customer needs and new external solutions through seven types of mindful interactions. At the same time, she tries to match unmet customer needs with potential external solutions in order to produce a new service concept that is ready for implementation. The model extends the concept of individual mindfulness as developed by Weick and Sutcliffe (2006) and Weick and Putnam (2006). In short, it proposes that an individual can concurrently maintain two modes of mindfulness – cognitive-flow mindfulness and content mindfulness – in order to facilitate knowledge creation in the form of a new service concept. More specifically, one can be mindful during an interaction of its potential for engendering novel content (cognitive-flow mindfulness) while keeping in mind certain organizationally-influenced content (content mindfulness). The individual who can concurrently maintain both modes of mindfulness is better able to make novel associations between new information and the content about which she is mindful (e.g., the library’s mission and major goals, unmet customer needs, potential external solutions). While the data behind the model suggest that mindfulness can be maintained by administrators in smaller, more resource-challenged libraries, and in libraries with non-consolidated organizational structures, the data also reveal that the new service concepts produced by these administrators were yielded only after an external funding source was obtained. For these libraries, developing and delivering new services without grant monies, or without a mechanism within the service for generating revenue, may not be feasible. This does not mean that the administrators of these libraries should stop trying to innovate, or should stop being mindful of new service possibilities, but rather that (1) they must be mindful, perhaps to a greater degree than their counterparts at better-funded libraries, of an interaction's potential for engendering an external funding source, and (2) they may not be able to devote as much time to identifying new customer needs and potential external solutions. Instead, they may need to devote much of their time to addressing ongoing financial challenges. A TEMPORAL MODEL OF MINDFUL INTERACTIONS AROUND NEW SERVICE CONCEPTION

7 citations

29 Jun 2012
TL;DR: In this article, a model that links three main variables: service innovation, information communication technology (ICT) capability, and customer responsiveness is proposed. But the model is not applicable to the case of the postal and courier services in Malaysia.
Abstract: In Malaysia, the national postal services and private courier companies significantly contribute towards the national economy and also provide the employment opportunities. Postal and courier services in Malaysia have undergone a radical change due to the rapid evolution of Information Communication Technology (ICT).Nevertheless, the need to have efficient postal and courier services is undeniable because of the increase in e-commerce applications these days and the need for integrated supply chain.Unlike the manufacturing sector, the innovation models in the service are still inconsistent.This requires further investigation especially in the postal and courier services.The investment in service innovation is huge but the question remains.Will it lead to customer responsiveness? Hence, this study seeks to develop a model that link three main variables: service innovation, information communication technology (ICT) capability, and customer responsiveness.This link has been given little attention by prior research particularly in the postal and courier services sector.The proposed model is discussed in the paper.

7 citations


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

  • ...Other studies have shown that the competence to innovate [14] and the firm’s new service development process [15] could lead to a greater organizational performance....

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Journal ArticleDOI
M. Sridhar1, P. Ganesan1
TL;DR: In this article, a detailed review related with service innovation factors in Indian banking sector has been conducted and the findings of this research is that certain factors act as a barriers to innovation and if they are concentrated and adopted by the bank they facilitate innovation thereby satisfying customers and improving the relationship.
Abstract: Service innovation in process and/or product is influenced by many factors they either enhance or reduce customer satisfaction and relationship improvement. The aim of this study is to determine the service innovation factors and their effects on customer satisfaction and relationship improvement in Indian banking sector. Since there is limited literature in identifying the service innovation factors in the Indian banking sector, a detailed review related with service innovation factors has been conducted. The findings of this research is that certain factors act as a barriers to innovation and if they are concentrated and adopted by the bank they facilitate innovation thereby satisfying customers and improve the relationship. This study helps the managers of the bank, policy makers and academicians about the importance of determining the service innovation barriers/facilitators and their effect in satisfying the customers and improving a long term relationship with them.

7 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,…...

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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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