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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01 Jan 2018
TL;DR: In this article, the authors describe how customers banking data is becoming available for third-parties by APIs, as a result of the European regulation PSD2, where customers' data can be freely accessed by third parties by APIs.
Abstract: The financial sector, as we know it, is radically transforming. As a result of the European regulation PSD2, customers banking data is becoming available for third parties by APIs [Evry n.d]. The t ...
6 citations
11 Jun 2012
TL;DR: This article conducted a large-scale survey among Singapore financial institutions to offer empirical evidences regarding NSD tools usage patterns, their impacts on new service development performance, and the contingencies on NSD innovativeness.
Abstract: This study takes a holistic view on new service development (NSD) tools. A thorough literature review was conducted to identify the commonly used NSD tools, together with their purposes, strengths and weaknesses. We executed a large-scale survey among Singapore financial institutions to offer empirical evidences regarding NSD tools usage patterns, their impacts on NSD performance, and the contingencies on NSD innovativeness. The results showed that: (1) NSD tools are still underutilized in service firms; (2) NSD tools have positive influences on NSD performance; and (3) more tools are adopted when services are new to the firm and new to the customer.
6 citations
Proceedings Article•
01 Jan 2009TL;DR: This paper draws from two reference domains to demonstrate the prospective value of information and communication technologies (ICTs) to the new service conception process and introduces a sensitizing model that can be used in an exploratory, foundational study of ICT use in the newservice conception process.
Abstract: To stay competitive over time, many service providers develop new services continuously through a process comprised of three primary stages: strategic planning, in which a new service objective is articulated; new service conception (i.e., new service development’s ‘front end’); and service system design, development and testing (i.e., its ‘back end’). Of these stages, new service conception has received the least attention from new service development (NSD) and information systems (IS) researchers, particularly with respect to the computer-mediated tools that are used to support it. After reviewing the NSD literature, this paper draws from two reference domains (new product development (NPD) and computerized creativity support (CCS) studies) to demonstrate the prospective value of information and communication technologies (ICTs) to the new service conception process. The paper concludes by introducing a sensitizing model that can be used in an exploratory, foundational study of ICT use in the new service conception process.
6 citations
11 Jul 2018
TL;DR: Customers' willingness to pay differentiated by charging point's characteristics and its location is obtained and implemented in form of price recommendations into an actual web-based P2P platform that enables private individuals to provide and access EV charging services.
Abstract: Poor availability of a nationwide, publicly accessible charging infrastructure in Europe is seen as a major impediment for a stronger market penetration of electric vehicles (EVs) Making privately owned charging points for electric vehicles accessible to the public in a Peer-to-Peer (P2P) charging network may present a remedy to this problem Developing such a P2P service, among others, requires knowledge on the customers' willingness to pay for EV charging We survey customers of a utility company in a mid-sized European city to assess their willingness to pay for EV charging Using choice-based conjoint analysis, we obtain customers' willingness to pay differentiated by charging point's characteristics and its location The estimates are subsequently implemented in form of price recommendations into an actual web-based P2P platform that enables private individuals to provide and access EV charging services This research contributes to the knowledge on the design of payment models in general and on the design of EV charging infrastructure services in particular Poor availability of a nationwide, publicly accessible charging infrastructure in Europe is seen as a major impediment for a stronger market penetration of electric vehicles (EVs) Making privately owned charging points for electric vehicles accessible to the public in a Peer-to-Peer (P2P) charging network may present a remedy to this problem Developing such a P2P service, among others, requires knowledge on the customers' willingness to pay for EV charging We survey customers of a utility company in a mid-sized European city to assess their willingness to pay for EV charging Using choice-based conjoint analysis, we obtain customers' willingness to pay differentiated by charging point's characteristics and its location The estimates are subsequently implemented in form of price recommendations into an actual web-based P2P platform that enables private individuals to provide and access EV charging services This research contributes to the knowledge on the design of payment models in general and on the design of EV charging infrastructure services in particular
6 citations
Cites background from "New service development: areas for ..."
...model is widely recognized and described as fundamental [18] and the most synthesized [19] in NSD research....
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TL;DR: The challenge of taking innovation to scale in an established firm is addressed by enhancing the understanding of the nature of service ramp ups and ramp downs by addressing reasons and importance for delays that lead to service ramp downs.
Abstract: Volume ramp ups are notoriously difficult in digital services, where market pressures can lead to ramping up too soon and too rapidly which in turn can lead to the need to ramp down. This paper addresses the challenge of taking innovation to scale in an established firm by enhancing our understanding of the nature of service ramp ups and ramp downs. Digital service ramp ups differ substantially from production ramp ups as the speed is much greater, and problems are visible to customers. However there are similarities between service ramp downs and product recalls and an important contribution is exploring the nature of ramp downs their processes and possible causes. Using an engaged research approach, longitudinal data from three consecutive ramp ups in a European telecom operator were collected. Through analyses of cases, qualitative and quantitative case data, and using a system dynamics model, we identified a set of issues that affect service ramp ups and ramp downs. These include the need to ramp up the service supply chain, biases leading to unrealistic assumptions about scalability and problem‐solving, decision biases in various functions, launching digital services in beta form, a lack of transparency of capacity and lack of learning from previous ramp ups. We show that if these problems are not addressed or resolution is delayed, this can lead to cycles of delay, backlogs and productivity problems and the inevitability of a ramp down. We explore reasons and importance for such delays that lead to service ramp downs.
6 citations
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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