Contrasting services with manufacturing - Innovation in services - New Service Development processes
3 important questions on Contrasting services with manufacturing - Innovation in services - New Service Development processes
What are the three enablers of effective New Service Development?
- Information technology - Using information technology to stimulate ideas for new service products and improved delivery, can be very important.
- Cross-functional teamwork - Cross-functional teamwork is essential to NSD and this requires managers to coordinate the front/back-office boundary between marketing and operations.
- Formal processes - A well-defined development process is less common in service companies but just as important as in manufacturing.
What are the four stages in development of a new service product?
- Generation of a concept
- Business analysis and planning
- Development
- Market launch
What is the implication with generating ideas in the service sector?
Often internal ideas based on anecdotal evidence are used rather than decisions about service innovations being appropriately based on facts gathered from the marketplace. It should be noted that service consumers, just as product users, might not be able to clearly articulate their future product needs, particularly due to the intangible nature of service products.
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