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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TL;DR: Innovationen sind im Ringen um Wettbewerbsvorteile - besonders in ubersattigten Markten - von zentraler Bedeutung (Gebauer et al. 2005). Innovative Sachguter und Dienstleistungen stellen ein geeignetes Mittel dar, um aktuelle Kunden zu binden and potenzielle Kundens zu gewinnen.
Abstract: Innovationen sind im Ringen um Wettbewerbsvorteile – besonders in ubersattigten Markten – von zentraler Bedeutung (Gebauer et al. 2005). Innovative Sachguter und Dienstleistungen stellen ein geeignetes Mittel dar, um aktuelle Kunden zu binden und potenzielle Kunden zu gewinnen (Stock 2010). Durch Innovationen konnen sich Unternehmen in Zeiten turbulenter Umweltveranderungen den wechselnden Bedurfnissen von Kunden anpassen. Sie ermoglichen es daruber hinaus, die Qualitat von physischen Produkten und Dienstleistungen zu erhohen, Kosten zu senken und neue Markte zu eroffnen (Hauser et al. 2006). In Anbetracht dieser Potenziale geben Unternehmen beachtliche Summen aus, um innovative Sachguter und Dienstleistungen zu entwickeln und auf den Markt zu bringen. Allein in Deutschland betrugen im Jahre 2009 die Ausgaben fur Forschung und Entwicklung (F&E) durch Unternehmen 57,4 Mrd. Euro (IW 2010).
5 citations
TL;DR: In this paper, the authors used a formal model and empirically tested its implications on how the time to discontinuation of new drug discovery projects are impacted by project-and firm-specific characteristics, so that a firm's resources can be promptly redeployed to more fruitful endeavors.
Abstract: Biotechnology and pharmaceutical firms invest billions of dollars in R&D, primarily in new drug discovery Nonetheless, the industry is facing declining returns on R&D investments Failure to discontinue less-promising new drug discovery projects is a key driver of this decreased productivity Hence, firms are scrambling to restructure the new drug discovery process to improve decision-making and to limit the attrition rate to the early stages of drug discovery Drawing on insights from the exploration-exploitation literature, our study addresses this timing problem by using a formal model and empirically testing its implications on how the time to discontinuation of new drug discovery projects are impacted by project- and firm-specific characteristics, so that a firm?s resources can be promptly redeployed to more fruitful endeavors Our findings, based on an analysis of 1,274 early-stage drug discovery projects worldwide, suggest that the time to discontinuation of early-stage drug discovery projects requires careful consideration of these project- and firm-specific characteristics These findings hold important implications for the industry, which is undergoing tremendous stress and transformation The results also contribute to the exploration-exploitation literature by modeling and testing the time-allocation decision between exploratory and exploitative activities
5 citations
11 Jun 2010
TL;DR: A method to construct a service map and explore new service opportunities through matching an existing service feature and customer needs, which is composed of open opportunities and closed opportunities based on the density of adjacent services is proposed.
Abstract: With the growth of service industry, customers are playing an increasingly important role in new service development (NSD). In response, we propose a method to construct a service map and explore new service opportunities through matching an existing service feature and customer needs. Specifically, the service map matches two respective maps, a service feature map and a customer needs map. We first collect data from various websites. Secondly, documents including service features and customer needs are transformed into the structured keyword vector. Then, the service map is created by reducing the dimension of the keyword vector through principal component analysis (PCA) and matching the service feature map and the customer needs map. Finally, we can explore new service opportunities which are composed of open opportunities and closed opportunities based on the density of adjacent services.
5 citations
TL;DR: In this paper, a systematic review of literature on research process of service innovation is conducted and three stages are discussed in the following, customer, new service development and new product development, theoretical and empirical.
Abstract: The industry of service has been progressing rapidly in recent years. In face of the financial crisis, innovation is becoming one of the most important factors along with the development of service innovation. It is important to fully consider characteristics both from theoretical and empirical perspective when identifying service innovation. This article conducts a systematic review of literature on research process of service innovation. In this paper, the research status on concept and typology of service innovation are demonstrated and classified in the second and third section, and three stages are discussed in the following, In addition, the development process is highlighted from four aspects: The customer, new service development and new product development, theoretical and empirical. At last, a recommended list of measures is provided for future theoretical study and empirical research.
5 citations
26 Jun 2019
TL;DR: In this paper, the authors developed a scale that can measure service innovation from customer perspective in retail industry, and found out how the developed scale can be used to evaluate service innovation in the retail industry.
Abstract: Purpose: The study is undertaken with two objectives, first to develop a scale that can measure service innovation from customer perspective in retail industry, and second to find out how the devel...
5 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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