Group #7: Najwa Bukhari Riffat Hussain Fahad Ullah Asim Shah Hamayun Shah & Mohsin Kamal

Group #7
Najwa Bukhari
Riffat Hussain
Fahad Ullah
Asim Shah
Hamayun shah &
Mohsin Kamal
Organizing successful new service development:
a lit review by Jeroen P.J. de Jong & Patrick A.M.
Vermeulen
• Organizing new service development (NSD) is an emerging,interesting and very

important area for all the authorities in service firms.
• Continuous innovation ultimately pays off.
Cont..
• Lit on NSD has grown significantly over the years, numerous publications in
this area are highly fragmented.
• The current paper classifies current lit on NSD into two evolutionary stages
as,
• Managing Key activities in the NSD process & secondly Creating a situation
which leads to innovation.
Introduction
• Services constitute a major part of the total economic activity in western countries
(OECD 2000,Anxo and storrie,2001).
• Despite its significance most of the service firms find it difficult with their
innovation efforts i.e financial services.
• Moreover many service entrepreneurs avoid from explicitely organizing
NSD,instead rely on adhoc process.
• Firms being most successful in providing new services prevent their innovation
efforts and processes from being adhoc (De Brentani,2001 ; Kelly and Storrey
2000).
• Current body of research focuses on some particular sectors,
• Financial services covered well (e.g Story and Easingwood,1996).
• Similarly transport service received much of the attention (e.g Nijholf et
al.,2002),followed by telecommunication services (e.g Hellstorm and
Hellstrom,2002) and wholesale (e.g Hart and service,1993).
Fahad ullah
What is innovation in services?
Nature of Services
• Services tend to be Intangible, heterogeneous, simultaneously produced
and consumed, and perishable.
• Innovations in services mostly involves small and incremental changes and
therefore easier to imitate.
Dimensions of innovation in services

• All definitions of innovation include the development and implementation of
“something new” along with some benefit.
• Innovation involves an application component.
Dimensions of innovation in services

• Innovation in the services concept
• Innovation in the client interface
• Innovation in the delivery system
• Innovation in the technological options
Results of innovation in services

• Current research usually focuses on manufacturing
• Services are poorly covered by innovation statistics
• The intangible and simultaneous nature makes the impact of service
innovations harder to trace however,
• Financial benefits ,creating customer value and increasing strategic success
are some resulted benefits.
EVOLUTIONARY STAGES
MANAGING KEY ACIVITIES

• People
 Involvement of Frontlines Employees
 Presence of Product Champions
 Management support
Implementation
• Structure
 Funnel tools
 Multifunctional teams
 Availability of Resources
 Pre-launching Testing
 Market Research and Launch
Peoples:
Involvement of Front Lines Employees
 Coworkers: The heart of the innovation process

 Sales Man: Embody new services, differentiate it from competitive
services and help clients in decision making about services.
Product Champions
 Someone who play an informal role that pushes a new product or service beyond the
roadblocks within the organization
 Persuade opponents and mobilize resources
Management Support:
 Encourage creative behaviors and development of ideas
 Set examples through their own actions
STRUCTURE:
Funnel tools:
 Trigger and channels employee creativity through creativity tools to gather and
screen ideas of front lines employees
 Provide rules and procedure to guide the developmental process
 Brainstorming a direct trigger to generate ideas
 Positive relationships with Co-workers innovative behaviors.
Multifunctional teams:
 Contributes directly to NSD
 New combinations of knowledge and competencies
 Increase problem solving ability
 Functional department cooperate and share information about developmental
process
Availability of resources:
• Time and money are required in NSD
Structure is cont.….
Pre launching testing:
o The service firms should the developed service in market for test
o The lack of testing is partly due to imitation strategy
o Me-too services risk is low
o Consumer acceptance of a new service through quantitative research
is not reliable
Market research and launch:

o To understand customer needs and preferences
o Design new products to fit different profiles of customer
o A careful market launch consist of
 trainings of co-workers
 effective marketing
 evaluation of the result of the launch
Creating a Climate for Continues
Innovation
 It is the second evolutionary stage of “New Service
development” process.
 It is important to get competitive advantage.
 For creating a climate for continues innovation manager

interventions can be aimed at people and structural
related characteristics.
Creating a Climate for Continues Innovation
People:
 External contacts
 Information sharing
 Autonomy of employees
Structure:
 Strategic focus
 Training and education
 Internal organizations and task rotation
 Information technology
Implication for managers
• Innovation is not just confined to IT. This paper helps managers understand
that innovation could be done in various other fields like new service
development.
• It can help managers focus on some key activities in the NSD such as
involving front line managers, recruiting product champions and providing
management support.
• It also helps managers understand the concept of making a climate that
support idea generation and initiation of new services.
Limitations
• Empirical evidence is scarce.

• The literature id limited to banks, insurance companies and
telecommunication but some fields are ignored like engineering, IT services
etc.
• There is limited study to show the effects of New Service Development.
Conclusion

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Group #7

• Organizing new service development (NSD) is an emerging,interesting and very

Dimensions of innovation in services

Dimensions of innovation in services

Results of innovation in services

MANAGING KEY ACIVITIES

 Coworkers: The heart of the innovation process

Market research and launch:

 It is important to get competitive advantage.

 For creating a climate for continues innovation manager

• Empirical evidence is scarce.

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