Page 177 - DMGT522_SERVICES MANAGEMENT

Services Management Ashwani Panesar, Lovely Professional University

Notes Unit 8: New Service Development and Process Design

CONTENTS
Objectives
Introduction
8.1 New Service Development

8.2 Process Design
8.3 Innovation
8.4 Design and Tools
8.5 Summary

8.6 Keywords
8.7 Review Questions
8.8 Further Readings

Objectives

After studying this unit, you will be able to:
Elaborate the concept of new service development
Explain the role of process design
Discuss the innovation concept
Describe the various design and tools

Introduction

New product development is one of the major challenges the business community is facing in
recent years. A faster offer provides greater mileage to the firms to face competition and win the
customers. Under these circumstances a close and constructive mechanism is imminent to the
organisations to facilitate new product development on continued basis. Research suggests that
products that are designed and introduced by following the steps in a structured planning frame
work have a greater likelihood of ultimate success than those not developed within a frame
work. Service firms often encounter serious threats from competitions in the front of new
product offers. The reasons are that services are intangible, variable and perfect standardisation
is not possible and easily capable without many financial and time problems. The above reasons
do not allow longer life spans to any service offer in the face of severe competition. Therefore,
innovativeness becomes a key for the success of service organisations. Those organisations that
have the competency to introduce new offers or improved offers much before the competitor
and much before the consumer anticipate such change can lead the market.

8.1 New Service Development

The formal process of new product development in the case of services is detailed in Figure 8.1:

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