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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01 Apr 2016
TL;DR: In this article, one suggested component of stimulating service innovation is customisation, which is considered a main research priority and remains a challenge for service providers, and is considered as one of the main challenges of service innovation.
Abstract: Crafting and stimulating service innovation is considered a main research priority and remains a challenge for service providers. One suggested component of stimulating service innovation is custom ...
3 citations
Cites methods from "New service development: areas for ..."
...Often, the terms “NSD” and “service innovation” are simply used interchangeably (Menor, Tatikonda, and Sampson 2002), without further characterizing the differences....
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Proceedings Article•
18 Jul 2010TL;DR: In this paper, a new framework for service design as a means and an end tool for modeling, designing, and developing the new manufacturing services is presented, which covers service concept, customer value and science & technology.
Abstract: Along with the changes of economic structure, Taiwanese manufacturing firms are facing unfavorable problems such as increasing operating costs and the matured product life cycle In order to gain competitiveness, many manufacturers in Taiwan are transforming into “manufacturing service industry” to satisfy customer needs Many manufacturers are moving toward to provide high value-added services by service innovation Previous studies argue that service design is an important issue in service innovation After literature review, this study presents a new framework for service design as a means and an end tool for modeling, designing, and developing the new manufacturing services According to the proposed framework, service design covers service concept, customer value and science & technology This paper applies qualitative case study method to discuss how the manufacturers apply service design to fulfill customer needs Next, a qualitative single case study is reported, in which a troublesome service design concept was surveyed through 5 extensive interviews We provide not only an original perspective on service design in manufacturing industry, but also a common implicit view that pure manufactures can shift to service-oriented manufactures by adding service to their customers Our results also indicate that service differentiation and functional value are the most important customer values which were considered by experienced managers
3 citations
Additional excerpts
...probability of launching new services [26]....
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Proceedings Article•
01 Jan 2013TL;DR: A theoretical model and related hypotheses are developed to examine the impact of the FFE team’s openness capabilities and IT competence on the performance ofThe FFE phase of service process innovation (SPI) projects measured in terms of market and technical uncertainty reduction as well as on the overall effectiveness of the SPI projects.
Abstract: The innovation process can be viewed as a two-stage model being comprised of “fuzzy front-end” (FFE) and “project execution”. The former is the focus of this study. Although both opening up to the outside world and use of IT in the innovation process have been suggested to have a positive impact on innovation performance by the literature, little effort has been put into studying both issues in the front-end phase. Therefore, the main purpose of this study is to address these gaps. In doing so, we develop a theoretical model and related hypotheses to examine the impact of the FFE team’s openness capabilities and IT competence on the performance of the FFE phase of service process innovation (SPI) projects measured in terms of market and technical uncertainty reduction as well as on the overall effectiveness of the SPI projects. This research is expected to make several contributions to the literature on innovation management and information systems (IS) management by providing new insights into how openness can improve the front-end process as well as how IT can facilitate a more open and collaborative approach to the FFE phase.
3 citations
TL;DR: In this article, a new definition of service innovation and a new model for service innovation at the enterprise level is proposed. But the definition is not clear and the current definition of related concepts and definitions in academia is not yet clear.
Abstract: Service
innovation is the driving force of social progress and provides necessary impetus
to the overall economic growth of the service industry. Although the importance
of service innovation is very strong, the current definition of related
concepts and definitions in academia is not yet clear. A large-scale economy as
a whole can be interpreted as a large service system that contains a variety of
interrelated subsystems. Therefore, to further promote the economic development
through service innovation, we need to know how to establish the management
mechanism of service innovation at the enterprise level. This thesis gives a
new definition of service innovation and also points out the difference between
the traditional model of innovation and new models of innovation. This thesis
pays special attention to the promotion of enterprise services, and relies on
relevant theories of management to construct a service innovation management
mechanism for enterprise service innovation based on theoretical guidance.
3 citations
Cites background from "New service development: areas for ..."
...tiveness of the service industry, and its basis is the service innovation competition, service enterprises should deepen service innovation [15]....
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05 Feb 2020
TL;DR: This article seeks to cover the gap through the development of a new service design method, the (Service (D)esign method for (C)ompanies undergoing a (S)ervitization process: SDCS, which followed Design Science Research (DSR) methodology.
Abstract: To cope with the fierce business competition and the increasing challenges brought with it, manufacturing companies have been demonstrating a growing interest in extending their service business. It is in this context that companies seek servitization strategies, i.e., developing the capabilities to add services to their traditional product offerings, to increase value to the customers and to differentiate themselves from the competition. However, companies pursuing a servitization strategy often lack methods and tools to design new services adapted to their context. Thus, this article seeks to cover this gap through the development of a new service design method, the (S)ervice (D)esign method for (C)ompanies undergoing a (S)ervitization process: SDCS. The development of this method followed Design Science Research (DSR) methodology. This article also presents the application of the SDCS method in a company undergoing a servitization process.
3 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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