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.
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13 Apr 2021
TL;DR: The paper contributes to the literature on servitization and PSS by explicitly identifying twenty-one preconditions that support the PSS design process while integrating product and service innovation in close relation to the end-user.
Abstract: User expectations regarding new products and services are evolving rapidly, forcing innovative organizations to explore new avenues for innovation, combining products and services. This paper focuses on the integrative design of product–service systems (PSSs) and builds on the servitization and service-based innovation literature. Many tools have been proposed for designing integrated PSS, with the intent to generate economic and/or sustainable impact. In this article, we focus on tools being used for bringing the user experience and intangibles in the design process. Although the literature is rich with tools and methods to optimize the PSS design process, it does not consider the full array of methods and their impact. This lack of research attention might hinder organizations developing PSS. Using in-depth interviews, this qualitative research systematically combines the extant conceptual literature on PSS design tools and processes with expert insights, thereby contextualizing how to lower thresholds in PSS design processes and how to increase the effectiveness of PSS design tools. The paper contributes to the literature on servitization and PSS by explicitly identifying twenty-one preconditions that support the PSS design process while integrating product and service innovation in close relation to the end-user.
6 citations
Journal Article•
TL;DR: In this article, the effects of customer involvement on operational dimensions (i.e., innovation speed and technical quality) and market dimensions (e.g., competitive superiority and sales performance) of new service performance were investigated.
Abstract: Customer involvement has been recognized as an important factor for successful service development. Despite its acknowledged importance, a review of the literature suggests that there is little empirical evidence about the effectiveness and outcomes of interacting with customers while developing new services. Against this backdrop, the present study investigates the effects of customer involvement on operational dimensions (i.e. innovation speed and technical quality) and market dimensions (i.e. competitive superiority and sales performance) of new service performance. Findings reveal that whereas customer involvement has a positive direct effect on technical quality and innovation speed, it has an indirect effect on competitive superiority and sales performance. In terms of managerial implications, the study offers critical insights on how customer involvement in new service development gets translated into improved new service performance.
6 citations
Cites background from "New service development: areas for ..."
...De acuerdo con Menor et al. (2002), la velocidad y la calidad son los resultados operativos centrales en el esfuerzo de desarrollo de un nuevo servicio, dado el recorte que se está produciendo en el tiempo en que un servicio puede sostener su ventaja competitiva sin verse imitado por los…...
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01 Jan 2015
TL;DR: In this article, the success of relationship management depends on the collection and analysis of customer knowledge, data and information to be used for developing highly personalized bank service offerings, which is the view of Customer Relationship Management (CRM) is the utilization of customerrelated information or knowledge to deliver relevant products or services to customers.
Abstract: One view of Customer Relationship Management (CRM) is the utilization of customer-related information or knowledge to deliver relevant products or services to customers (Zineldin, 2000). The success of relationship management depends on the collection and analysis of customer knowledge, data and information to be used for developing highly personalized bank service offerings.
6 citations
6 citations
Proceedings Article•
21 Jun 2012
TL;DR: This research examines how Service-Oriented Architecture (SOA), and its effect on Information Technology Infrastructure Flexibility (ITIF), acts as an enabler for recently identified organizational drivers of services innovation in a service system, namely Collaborative Architecture Management (CAM) and Collaborative Organizational Infrastructure (COI).
Abstract: Innovation in services can be regarded as an inter-play of service concepts, service delivery practices, client interfaces, and service delivery technologies. Furthermore, innovations in services are increasingly brought to the market by networks of firms, selected for their unique capabilities and operated in a coordinated manner, referred to as a service system or service value network (SVN). Bringing such service innovations to market by a network of firms requires extensive coordination and integration of data, information/knowledge and processes, while ensuring strategic alignment of partnering firms. In this research we examine how Service-Oriented Architecture (SOA), and its effect on Information Technology Infrastructure Flexibility (ITIF), acts as an enabler for recently identified organizational drivers of services innovation in a service system, namely Collaborative Architecture Management (CAM) and Collaborative Organizational Infrastructure (COI).
6 citations
Cites background from "New service development: areas for ..."
...In our context of network partners, previous alliance literature and innovation literature have demonstrated that innovation in services is possible in several dimensions through increased productivity, improvement in performance, and new service offerings [3],[8],[27],[28],[26],[29],[30],[31]....
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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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