Page 178 - DMGT522_SERVICES MANAGEMENT

Unit 8: New Service Development and Process Design

Notes
Figure 8.1: Process of New Service Development

Let us have a detailed understanding of the eight steps involved in the process of new service
development.

8.1.1 Idea Generation

Idea generation is the first step in the new service development process. It is very difficult to
know when a new idea generates and how it generates. It is an undisputed fact that the scarcest
product in the present day competitive world is a good idea. Ideas are applied to an organisation
or a situation. Service firms need more and more ideas. Therefore, mechanism need to be
developed for the continuous generation of new as they are in direct contact with the customer
and involve themselves physically and the chief position as source of ideas. Generally, customers
are more expressive in services than in goods because they have direct interaction with the
service provider. Relationship marketing contributes a lot in this direction. The other sources
include support personnel, competitors, professional organisations, researchers and social
organisations. Service firms should design channels to receive ideas from various sources.
Proper motivational and reward schemes also need to be designed for the purpose. While
collecting the ideas the managers concerned should have open mind and should not be evaluate
at this point. They should look for maximum under of ideas from various sources and pooling
the ideas should be the only objective. Ideas from various sources and pooling the ideas should
be the only objective. Ideas need not be innovative altogether; they can be for minor
improvements to the present service offer.

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