Having a strategy for new service development : does it really matter?

Purpose – The aim of this study is to investigate the role of key strategic factors in new service development (NSD). In particular, the role of service development strategy, a formalised development process, integrated development teams and customer co-creation were investigated and the results were compared with managers' beliefs. Design/methodology/approach – The study used a sample of more than 500 service development projects to test a NSD conceptual model. Regression analysis was used to test the relative importance of the key strategic factors, and the results were compared with managers' beliefs. Findings – The results show that managers believe that customer co-creation is most important in order to succeed with NSD. However, contrary to management belief, a service development strategy is the “missing link” in improving NSD performance. In addition, the research highlighted an interaction effect between integrated development teams and customer co-creation, which means that project managers should focus on individual competencies on the development team and how they interact with customers throughout the NSD process. Originality/value – For a long time, NSD has failed to receive the attention it deserves, not just in practice but also in service research. This study shows that the number of new services put on the market and then withdrawn because of low sales remains as high as 43 per cent. This paper contributes knowledge on how to reduce the number of failures in NSD by pointing out the key strategic factors that influence NSD performance.

Modelling the Knowledge Interface between Sales and Production Functions of a Company. Case: New Service Development Process.

Yrityksen sisäisten rajapintojen tunteminen mahdollistaa tiedonvaihdon hallinnan läpi organisaation. Idean muokkaaminen kannattavaksi innovaatioksi edellyttää organisaation eri osien läpi kulkevaa saumatonta prosessiketjua sekä tietovirtaa. Tutkielman tavoitteena oli mallintaa organisaation kahden toiminnallisesti erilaisen osan välinen tiedon vaihto. Tiedon vaihto kuvattiin rajapintana, tietoliittymänä. Kolmiulotteinen organisaatiomalli muodosti tutkimuksen pääteorian. Se kytkettiin yrityksen tuotanto- ja myyntiosiin, kuten myös BestServ-projektin kehittämään uuteen palvelujen kehittämisen prosessiin. Uutta palvelujen kehittämisen prosessia laajennettiin ISO/IEC 15288 standardin kuvaamalla prosessimallilla. Yritysarkkitehtuurikehikoita käytettiin mallintamisen perustana. Tietoliittymä nimenä kuvastaa näkemystä siitä, että tieto [tietämys] on olemukseltaan yksilöiden tai ryhmien välistä. Mallinnusmenetelmät eivät kuitenkaan vielä mahdollista tietoon [tietämykseen] liittyvien kaikkien ominaisuuksien mallintamista. Tietoliittymän malli koostuu kolmesta osasta, joista kaksi esitetään graafisessa muodossa ja yksi taulukkona. Mallia voidaan käyttää itsenäisesti tai osana yritysarkkitehtuuria. Teollisessa palveluliiketoiminnassa sekä tietoliittymän mallinnusmenetelmä että sillä luotu malli voivat auttaa konepajateollisuuden yritystä ymmärtämään yrityksen kehittämistarpeet ja -kohteet, kun se haluaa palvelujen tuottamisella suuremman roolin asiakasyrityksen liiketoiminnassa. Tietoliittymän mallia voidaan käyttää apuna organisaation tietovarannon ja tietämyksen mallintamisessa sekä hallinnassa ja näin pyrkiä yhdistämään ne yrityksen strategiaa palvelevaksi kokonaisuudeksi. Tietoliittymän mallinnus tarjoaa tietojohtamisen kauppatieteelliselle tutkimukselle menetelmällisyyden tutkia innovaatioiden hallintaa sekä organisaation uudistumiskykyä. Kumpikin tutkimusalue tarvitsevat tarkempaa tietoa ja mahdollisuuksia hallita tietovirtoja, tiedon vaihtoa sekä organisaation tietovarannon käyttöä.

The value of digitalization of services in the new service development

The purpose of this thesis is to study factors that have an impact on the company’s capabilities to identify and analyze the value of digitalization of services during the early stages of service development process and evaluate them from the perspective of a case company. The research problem was defined: “How digitalization of services affects delivering the services of the future?” The research method of this thesis was based on the qualitative case study which aimed to study both company’s and customer’s set of values. The study included a literature review and a development study. The empirical research part consisted of analyzing three existing services, specifying a new digital service concept and its feasibility analysis as part of a business requirement phase. To understand the set of values, 10 stakeholder interviews were conducted and earlier customer surveys were utilized, and additionally, a number of meetings were conducted with the case company representatives to develop service concept, and evaluate the findings. The impact of the early stages of service development process discovered to reflect directly in the capabilities of the case company to identify and create customer value were related to the themes presented in the literature review. In order to specify the value achieved from the digitalization the following areas of strategic background elements were deepened during the study: Innovations, customer understanding and business service. Based on the findings, the study aims to enhance the case company’s capability to identify and evaluate the impact of the digitalization in delivering services of the future. Recognizing the value of digital service before the beginning of the development project is important to the businesses of both customer and provider. By exploring the various levels of digitalization one can get the overall picture of the value gained from utilizing digital opportunities. From the development perspective, the process of reviewing and discovering the most promising opportunities and solutions is the key step in order to deliver superior services. Ultimately, a company should understand the value outcome determination of the individual services as well as their digital counterparts.

Understanding the Combined Role of Internal and External Factors in New Service Development Process within the Professional Knowledge Intensive Business Service Firms

Our research asked the following main questions: how the characteristics of professionals service firms allow them to successfully innovate in exploiting through exploring by combining internal and external factors of innovation and how these ambidextrous organisations perceive these factors; and how do successful innovators in professional service firms use corporate entrepreneurship models in their new service development processes? With a goal to shed light on innovation in professional knowledge intensive business service firms’ (PKIBS), we concluded a qualitative analysis of ten globally acting law firms, providing business legal services. We analyse the internal and factors of innovation that are critical for PKIBS’ innovation. We suggest how these firms become ambidextrous in changing environment. Our findings show that this kind of firms has particular type of ambidexterity due to their specific characteristics. As PKIBS are very dependant on its human capital, governance structure, and the high expectations of their clients, their ambidexterity is structural, but also contextual at the same time. In addition, we suggest 3 types of corporate entrepreneurship models that international PKIBS use to enhance innovation in turbulent environments. We looked at how law firms going through turbulent environments were using corporate entrepreneurship activities as a part of their strategies to be more innovative. Using visual mapping methodology, we developed three types of innovation patterns in the law firms. We suggest that corporate entrepreneurship models depend on successful application of mainly three elements: who participates in corporate entrepreneurship initiatives; what are the formal processes that enhances these initiatives; and what are the policies applied to this type of behaviour.

Frontline employees' collaboration in industrial service innovation:routes of co-creation's effects on new service performance

From a Service-Dominant Logic (S-DL) perspective, employees constitute operant resources that firms can draw to enhance the outcomes of innovation efforts. While research acknowledges that frontline employees (FLEs) constitute, through service encounters, a key interface for the transfer of valuable external knowledge into the firm, the range of potential benefits derived from FLE-driven innovation deserves more investigation. Using a sample of knowledge intensive business services firms (KIBS), this study examines how the collaboration with FLEs along the new service development (NSD) process, namely FLE co-creation, impacts on service innovation performance following two routes of different effects. Partial least squares structural equation modeling (PLS-SEM) results indicate that FLE co-creation benefits the NS success among FLEs and firm’s customers, the constituents of the resources route. FLE co-creation also has a positive effect on the NSD speed, which in turn enhances the NS quality. NSD speed and NS quality integrate the operational route, which proves to be the most effective path to impact the NS market performance. Accordingly, KIBS managers must value their FLEs as essential partners to achieve successful innovation from an internal and external perspective, and develop the appropriate mechanisms to guarantee their effective involvement along the NSD process.

Customer involvement in new service development

This case study aims at filling the research gap in the literature, by researching how customers experience customer involvement in new service development, in addition to giving insight on what are the organisational customers’ motivations to become involved in service development. These subjects are studied by conducting three interviews. The thesis gives a review of previous findings regarding customer-driven new service development, customer involvement, customer roles, modes of involvement, communication in the involvement process, what is the role of customer engagement and what are the motivational drivers for customers. The thesis also explains what new service development is and makes a distinction between new service development and new service design. The results revealed that organisational customers want to be involved throughout the development process, with active involvement in the beginning and end phases. Moreover, customers prefer face-to-face methods and active and bidirectional communication throughout the process. The findings propose seven motivational factors, a new framework for customer-driven new service development and communication process map. The managerial implications list five themes for service providers to take into consideration when involving customers to the service development process.

Developing Service-based Solutions for Water Treatment in Finnish Mining Industry

The aim of this master’s thesis is to analyze the mining industry customers' current and future needs for the water treatment services and discover new business development opportunities in the context of mine water treatment. In addition, the study focuses on specifying service offerings needed and evaluate suitable revenue generation models for them. The main research question of the study is: What kind of service needs related to water treatment can be identified in the Finnish mining industry? The literature examined in the study focused on industrial service classification and new service development process as well as the revenue generation of services. A qualitative research approach employing a case study method was chosen for the study. The present study uses customer and expert interviews as primary data source, complemented by archival data. The primary data was gathered by organizing total of 13 interviews, and the interviews were analyzed by using qualitative content analysis. The abductive-logic was chosen as the way of conducting scientific reasoning in this study. As a result, new service proposals were developed for Finnish mine industry suppliers. The main areas of development were on asset efficiency services and process support services. The service needs were strongly associated with suppliers’ know-how of water treatment process optimization, cost-effectiveness as well as on alternative technologies. The study provides an insight for managers that wish to pursue a water treatment services as a part of their business offering.

A human-centric service approach for architecting and reengineering global system

Production of a new system in any range is expanding dramatically and new ideas are there upon introduced, the logic stands behind the matter is the growth of application of the internet and granting web-based systems. Before producing a system and distribute to the customer, various aspects should be studied which multiple the profit of the system. The process of productizing a new system from being unprocessed idea until delivers to the final user has been unambiguous. In this thesis, the systematize service in a way that benefits both the customer and provider, along with an effort to establish trust and diminish customer’s risk and increase service productivity are in detail presented. Characteristics of Servitization and Productization as two faces of one coin have been interpreted. Apart from the abovementioned issues state of art, service-oriented architecture (SOA) and New Service Development (NSD) has been included in this report for solving the problem of gradually decline in value of companies.

Overcoming Challenges to Service Innovation Process Implementation in an SME

This case study research reports on a small and medium-sized (SME) business-to-business (B2B) services firm implementing a novel new service development (NSD) process. It provides accounts of what occurred in practice in terms of the challenges to NSD process implementation and how the firm overcame these challenges. It also considers the implications for NSD in this and other firms’ innovation practices. This longitudinal case study (18 months) was conducted “inside” the case organization. It covered the entire innovation process from the initiation to the launch of a new service. The primary method may be viewed as participant observation. The research involved all those participating in the innovation system in the firm, including decision-makers, middle managers and employees at lower hierarchical levels and the firm’s external networks. Implications for researchers and managers focusing on structured innovation models for the services sector are also presented.

Asiakkaan osallistuminen palvelunkehitysprossiin

Suomessa on uudistuneen jätelain tavoitteena jätteiden lajittelun tehostaminen ja jätemäärien pienentäminen. Tutkimuksen tavoitteena oli selvittää miten asiakas voi osallistua uuden palvelun kehittämisprosessiin. Empirian kautta vastattiin kysymyksiin millainen on asiakkaan halukkuus ja valmius osallistua palvelunkehittämiseen ja mikä on asiakkaiden palaute palvelun ominaisuuksista. Tutkimus toteutettiin tapaustutkimuksena, jossa tutkittavana oli Aalto-yliopiston jätteiden raportointi- ja suunnittelupalvelun (Kierrätyspalvelin) palvelunkehitysprosessi. Tiedonkeruumenetelmänä oli yksilö- ja ryhmäteemahaastattelut. Tutkimustuloksena esitettiin Kierrätyspalvelimen palvelunkehitysprosessin malli. Tärkeimpänä tutkimuksellisena havaintona oli, että haastateltavat toimivat lähinnä tiedonlähteinä tarpeistaan. He osallistuivat palvelun ominaisuuksien testaukseen ja määrittelyyn.

Palvelun kehittämisen prosessi: Uusien ratkaisuiden yhtäaikainen kehittäminen ja testikäyttö henkilöstöravintolassa

Palveluiden kehittämista on tutkittu suhteellisen vähän. Ensimmäiset palvelukehitysprosessit esitettiin kirjallisuudessa jo 80-luvulla mutta sen jälkeen kehitysprosessia ei ole radikaalisti päivitetty. Tämän työn tarkoituksena on koota kirjallisuudesta erilaisia lähestymistapoja palveluiden kehittämiseen ja näiden tutkimuksien löydöksien pohjalta rakentaa synteesi palveluiden kehittämisen prosessista sekä tutkia sen toteutumista IBM:n ja Fazer Amican yhteishankkeena toteutetun Tulevaisuuden henkilöstöravintola –projektin tapauksessa. Palveluiden kehittämisen prosessin synteesi perustuu kirjallisuudessa esitettyyn perinteiseen 12-vaiheiseen kehitysprosessiin, jota on muokattu päällekkäin suoritettujen vaiheiden kehitysprosessin, teknologian mahdollistaman palvelukehityksen, testikäytön ja interaktioiden kautta oppimisen näkökulmasta. Synteesissä on esitetty prosessin neljä päävaihetta, jotka ovat ideointi, palvelun kehittäminen ja testikäyttö, tuotteistus ja lanseeraus.

XML-based content transformation in converged service development

Tele- ja dataviestinnän yhdistyminen digitaaliseen sisältöön luo uusia palveluideoita sekä mobiili- että internetverkkoihin. Nämä palvelut kehitetään usein erikseen, jolloin saman sisällön käyttäminen eri pääsymenetelmin ei ole mahdollista. Sisältömuunnos on mahdollista sisällön ja muotoilun eriyttämisellä, joka puolestaan vaatii informaatioyksiköiden merkkauksen sisältöä kuvaavilla lisätiedoilla. Tässä diplomityössä tutkitaan Extensible Markup Languagen (XML) käyttöä yhdistyneiden palvelujen sisältömuunnoksessa. Nykyisiä ja tulevia palveluita ja verkkoja tarkastellaan sekä sisällön että liiketoiminnan kannalta. Lisäksi esitellään lyhyesti omia ajatuksia ja käsityksiä yhdistyneistä palveluista ja informaation täsmällisyydestä. Työn käytännön osuudessa kuvataan itse suunniteltu palvelualusta sekä esitellään sen avulla rakennettuja sovelluksia

User-driven community-based service development

This final thesis project was carried out in the Industrial Management department of University of Applied Sciences Stadia for Forum Virium Helsinki. The purpose of this study was to answer to the question of how companies can use online customer community of co-creation in service development and what is the value gained from it. The paper combines a range of recently published theoretical works and ongoing customer community case development. The study aims to provide new information and action approaches to new service developers that may increase the success of the community building process. The paper also outlines the benefits of the use of online customer community and offers practical suggestions for maximizing the value gained from the community in service development projects. The concepts and suggestions introduced in the study appear to have notable new possibilities to the service development process but they have to be further tested empirically. This paper describes the online consumer community of co-creation to an important organizational process of innovation management suggesting that it possesses a great value to business. Online customer communities offer a potential of improving the success of new services or products enabling early, penetrable market entry and creating sustainable competitive advantage.