Patterns of new service development processes in banking

2016 ◽  
Vol 34 (1) ◽  
pp. 62-77 ◽  
Author(s):  
Andrey Martovoy ◽  
Anne-Laure Mention
Keyword(s):  
Financial Services ◽  
Idea Generation ◽  
Innovation Process ◽  
Small Sample ◽  
Problem Definition ◽  
Service Development ◽  
New Service Development ◽  
Service Concept ◽  
Content Type ◽  
Business Goals

Purpose – The purpose of this paper is to map the existing patterns in the development of services innovations in financial institutions. Design/methodology/approach – The data come from a dedicated survey of banks located in Luxembourg. Executives and innovation managers reported on banks’ innovation processes for the period of 2010-2012. Findings – The study unveils four patterns of new service development (NSD) processes. The problem-driven pattern starts with problem definition and represents a bank’s response to an issue. The proactivity-driven pattern commences with idea generation to explore a variety of alternatives. The market-driven pattern emphasises a profit rationale and starts with a business analysis. The strategy-driven pattern frames idea generation within the scope of business goals and starts with the development of a service concept. Most banks keep a balance between being open and closed to cooperation with external partners in the innovation process. Service concept development is the stage most open to the cooperation for innovation, while introduction to a market is the opposite. Research limitations/implications – The national context and small sample size are the limitations of this study. Promising research avenues include the extension of findings to other settings and understanding of the effects of NSD patterns. Practical implications – Banks adopt different approaches to the innovation process in order to pursue their innovation goals. Practitioners may use this knowledge in order to re-think the way they innovate. Originality/value – The unveiled mapping of NSD processes contributes to the understanding of the innovation in financial services. The findings will be valuable for innovation managers, scholars, and students.

Interacting with Muslim customers for new service development in a non-Muslim majority country

2019 ◽  
Vol 10 (4) ◽  
pp. 1017-1036 ◽  
Author(s):  
Intekhab Alam
Keyword(s):  
Financial Services ◽  
Emerging Market ◽  
Financial Service ◽  
Service Development ◽  
Service Firms ◽  
New Service Development ◽  
Content Type ◽  
Customer Interaction ◽  
Muslim Majority ◽  
Financial Service Firms

Purpose The purpose of this paper is to discuss the process of interaction with the Muslim customers in developing new Islamic financial services in a secular and non-Muslim majority emerging country, India. Design/methodology/approach Data were collected using a multiple case study methodology in which the service managers of 23 financial service firms and their customers were interviewed. A total of 46 managers and 31 Muslim customers provided data for this paper. Findings A service firm must interact with its Muslim customers to obtain key input and information for developing new Islamic financial services, particularly in a Muslim minority country. The Muslim customers are willing to work with the financial service firms for the purpose of new service development and are a good source of information for new Islamic financial services. Practical implications The paper has implications for the financial service firms interested in achieving growth and prosperity by developing and marketing new services to the growing population of Muslim customers in the emerging markets, particularly India. Originality/value The issue of customer interaction in new service development is a key concept in the extant literature, yet no study has explored this concept for the Islamic banking and financial products in a non-Muslim majority emerging market. This is the first paper that has applied the customer interaction in new service development theory to the interaction process of Muslim customers in a non-Muslim majority country and, thus, addressed a worthwhile research gap.

scholarly journals Unfolding the simple heuristics of smart solution development

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tuomas Huikkola ◽  
Marko Kohtamäki ◽  
Rodrigo Rabetino ◽  
Hannu Makkonen ◽  
Philipp Holtkamp
Keyword(s):  
Single Case ◽  
Innovation Process ◽  
Research Strategy ◽  
Service Development ◽  
New Service Development ◽  
Content Type ◽  
Study Approach ◽  
Project Outcomes ◽  
Simple Rules ◽  
Stop Rules

PurposeThe present study intends to foster understanding of how a traditional manufacturer can utilize the “simple rules” approach of managerial heuristics to facilitate its smart solution development (SSD) process.Design/methodology/approachThe study uses an in-depth single case research strategy and 25 senior manager interviews to understand the application of simple rules in smart solution development.FindingsThe findings reveal process, boundary, preference, schedule, and stop rules as the dominant managerial heuristics in the case and identify how the manufacturer applies these rules during the innovation process phases of ideation, incubation, transformation, and industrialization for attaining project outcomes.Research limitations/implicationsThe study contributes to the new service development (NSD) literature by shedding light on simple rules and how managers may apply them to facilitate SSD. The main limitations stem from applying the qualitative case study approach and the interpretative nature of the study, which produces novel insights but prevents direct generalization to other empirical cases.Practical implicationsThe resulting framework provides guidelines for managers on how to establish formal and clear simple rules that enable industrial solution providers to approach decision-making in smart solution development in a more agile manner.Originality/valueThe study comprises one of the first attempts to investigate managerial heuristics in the context of SSD and puts forward a plea for further NSD research applying psychological conceptualizations to enrich the simple rules perspective.

scholarly journals Incremental and radical open service innovation

2018 ◽  
Vol 32 (2) ◽  
pp. 101-112 ◽  
Author(s):  
Per Myhren ◽  
Lars Witell ◽  
Anders Gustafsson ◽  
Heiko Gebauer
Keyword(s):  
Service Innovation ◽  
Group Development ◽  
Case Analysis ◽  
Team Development ◽  
Service Development ◽  
New Service Development ◽  
Content Type ◽  
Open Service ◽  
Cross Case Analysis

Purpose Open service innovation is an emergent new service development practice, where knowledge on how to organize development work is scarce. The purpose of the present research is to identify and describe relevant archetypes of open service innovation. The study views an archetype as an organizing template that includes the competence of participants, organizing co-creation among participants and ties between participants. In particular, the study’s interest lies in how open service innovation archetypes are used for incremental and radical service innovation. Design/methodology/approach For the research, a nested case study was performed, in which an industrial firm with nine open service innovation groups was identified. Forty-five interviews were conducted with participants. For each case, first a within-case analysis was performed, and how to perform open service innovation in practice was described. Then, a cross-case analysis identifying similarities and differences between the open service innovation groups was performed. On the basis of the cross-case analysis, three archetypes for open service innovation were identified. Findings The nested case study identified three archetypes for open service innovation: internal group development, satellite team development and rocket team development. This study shows that different archetypes are used for incremental and radical service innovation and that a firm can have multiple open service innovation groups using different archetypes. Practical implications This study provides suggestions on how firms can organize for open service innovation. The identified archetypes can guide managers to set up, develop or be part of open service innovation groups. Originality/value This paper uses open service innovation as a mid-range theory to extend existing research on new service development in networks or service ecosystems. In particular, it shows how open service innovation can be organized to develop both incremental and radical service innovations.

Managing service innovations at online travel agencies: evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yu Mu ◽  
Bart Bossink ◽  
Tsvi Vinig ◽  
Suchuan You
Keyword(s):  
Success Factors ◽  
Innovation Management ◽  
Service Innovation ◽  
Idea Generation ◽  
Analytical Framework ◽  
Service Development ◽  
Content Type ◽  
Travel Agencies ◽  
Online Travel ◽  
Online Travel Agencies

Purpose Research on service innovation management of online travel agencies (OTAs) remains relatively scarce. This study aims to illuminate the detailed components of managing service innovations at OTAs. Design/methodology/approach An in-depth case study is conducted at Trip, the largest OTA in China. A coherent framework of managing service innovations at OTAs is proposed through refining an existing framework from new service development (NSD), and concerning the success factors of service innovation. Based on theoretical synthesis and empirical analysis, the NSD framework is adapted, restructured and refined for service innovation management at OTAs. Findings The proposed framework contains three facets and associated managerial elements: (1) resources, including stakeholders, technologies and systems; (2) contexts, including innovation strategy, structure and culture; and (3) ideation, including idea generation and idea application. Different success factors are attached to the managerial elements. The facets, managerial elements and success factors serve as the components in the framework. Research limitations/implications This study provides academia with an analytical framework to understand and interpret service innovation management at OTAs, which can be used as a point of departure for future research. Practical implications The analytical framework inspires OTA managers to adopt a structured approach in service innovation management, and policymakers to design related interventions. Originality/value This study offers a first step toward the investigation of service innovation management at OTAs, specifically in China. The proposed framework is potentially applicable to other industries.

Exploring front-line employee contributions to service innovation

2015 ◽  
Vol 49 (9/10) ◽  
pp. 1346-1365 ◽  
Author(s):  
Jenny Karlsson ◽  
Per Skålén
Keyword(s):  
Employee Involvement ◽  
Service Innovation ◽  
Idea Generation ◽  
Innovation Process ◽  
Positive Contribution ◽  
Product Knowledge ◽  
Front Line ◽  
Content Type ◽  
Value Propositions ◽  
Practice Knowledge

Purpose – This paper aims to study front-line employees’ contribution to service innovation, when they contribute and how they are involved in service innovation. Design/methodology/approach – The paper draws on a multiple-case study on service innovation in four organizations with extensive front-line employee involvement. The main data collection methods are interviews and observations. Findings – The paper suggests that front-line employees contribute customer knowledge, product knowledge and practice knowledge during five phases of the service innovation process – project formation, idea generation, service design, testing and implementation – and that front-line employee involvement ranges from active to passive. Research limitations/implications – Statistical generalization of the results is needed. Practical implications – The paper reveals that early and active front-line employee involvement in the service innovation process creates conditions for a positive contribution to service innovation. Originality/value – The paper suggests that early and active knowledge contributions by front-line employees to the service innovation process are associated with the creation of attractive value propositions.

Idea generation leveraged from value co-creation process enhances new service development performance

2018 ◽  
Vol 27 (6) ◽  
pp. 483-504 ◽  
Author(s):  
Seyedeh Khadijeh Taghizadeh ◽  
Syed Abidur Rahman ◽  
Malliga Marimuthu
Keyword(s):  
Idea Generation ◽  
Service Development ◽  
New Service Development ◽  
Creation Process

Stories of innovation: roles, perspectives, and players

2013 ◽  
Vol 38 (1/2) ◽  
pp. 40-53 ◽  
Author(s):  
Jon Martens
Keyword(s):  
Organizational Culture ◽  
Idea Generation ◽  
Innovation Process ◽  
Project Teams ◽  
New Approach ◽  
Content Type ◽  
Organizational Settings ◽  
Culture Integration ◽  
Organizational Narrative

Purpose – This study aims to examine the roles of stories in the innovation process. Design/methodology/approach – An integrative literature review was used to identify and analyze studies that examined stories of innovation in various organizational settings. The conceptual framework of the review was based on three perspectives of organizational culture: integration, differentiation, and fragmentation. Findings – A typology of the roles of stories of innovation was synthesized from a review of the literature. The major roles in the typology included fostering a culture of innovation, managing product planning and project teams, facilitating idea generation and problem solving, and analyzing failed innovations. These roles were congruent with multiple perspective of organizational culture, including integration, differentiation, and fragmentation. Research limitations/implications – Additional research should be conducted to further explore and confirm the study's exploratory typology as a possible extension to the role of organizational narrative in the process of innovation. Practical implications – The study's conceptual typology can presently serve as a useful learning tool for HRD practitioners to facilitate an organization's understanding of the innovation process. Originality/value – The study presents a new approach to analyzing the roles of stories in innovation with perspectives of organizational culture and provides an initial base for further research that might extend understanding of the types of roles narratives play in innovation.

New Service Development of Entrepreneurial Innovations in the IT Sector

2008 ◽  
Vol 9 (1) ◽  
pp. 21-31 ◽  
Author(s):  
Michael C. Ottenbacher ◽  
Robert J. Harrington
Keyword(s):  
Information Technology ◽  
Idea Generation ◽  
Service Development ◽  
New Service Development ◽  
Innovation Projects ◽  
It Innovation ◽  
The Impact

The authors report on a survey of small and medium-sized entrepreneurial information technology (IT) firms to investigate the impact of new service development (NSD) process activities on innovation success and failure. Their findings highlight the importance of managing the process to engage customers, management and employees, facilitating innovation champions to aid in idea generation and commitment, effectively communicating the benefits to customers, and using the tacit nature of the process to create barriers to imitation. In general, the findings point to several key elements that impact on successful entrepreneurial IT innovation projects and appear to result from an iterative, flexible and process-linked approach to NSD innovation.

Urban transportation: innovations in infrastructure planning and development

2017 ◽  
Vol 28 (1) ◽  
pp. 150-171 ◽  
Author(s):  
Sundaravalli Narayanaswami
Keyword(s):  
Public Transportation ◽  
Large Scale ◽  
Urban Transportation ◽  
Development Project ◽  
Service Development ◽  
New Service Development ◽  
Content Type ◽  
Transportation Service ◽  
Capital Intensive

Purpose New services design and development are difficult to plan, execute, measure and evaluate. Particularly, new services that are capital-intensive and involve a long gestation and development time are considered extremely risky. The purpose of this paper is to discuss a list of innovative practices in various managerial aspects in designing, planning and development of a large scale infrastructure intensive public transportation service. A contemporary new public transportation service development is discussed as evidence of proven and benchmarked criteria. Design/methodology/approach This is a technical paper, where theoretical foundations of best practices in new service development project are discussed and supported by practice-based evidences from a real-life urban transportation project. A case study approach is adopted with secondary data. Findings Worldwide during and after economic recession of 2008, several projects were stalled or abandoned. The inference through this work is that through efficient management practices, a large capital-intensive new service development project can be made successful even during a turbulent economy in a region marred by more challenges than elsewhere. Practical implications Several issues in large scale services development, such as urban transportation are domain specific. Some of the issues faced in urban transportation are common to several Gulf countries; therefore the policy guidelines, managerial practices and development strategies reported in this paper can be replicated in many of them. The commercial impact of the service project is a significant drive towards fuel conservation and to save huge amounts of productive time. Social implications Public transportation with a high quality of networked service improves the quality of life to a large extent. Unless certain measurable demands are not met, an affluent society is less likely to endorse public transportation. In addition, endorsement of public transportation is been promoted in several parts of the world as a drive towards a green, energy efficient, low-carbon emission and sustainable environment. Originality/value To the best of the authors’ knowledge, new services planning and development is a key operations management topic, on which very little is written about. Particularly no other paper has presented a real-world large scale infrastructure intensive project development to this detail, and along with a theoretical background to benchmark performance and development practices.

Networked new service development process: a participant value perspective

2014 ◽  
Vol 52 (1) ◽  
pp. 18-32 ◽  
Author(s):  
Hannu Makkonen ◽  
Hanna Komulainen
Keyword(s):  
Service Development ◽  
End User ◽  
New Service Development ◽  
Content Type ◽  
Matching Process ◽  
Living Lab ◽  
Value Propositions ◽  
Careful Investigation ◽  
Practical Implications ◽  
Shed Light

Purpose – The purpose of this paper is to shed light on perceived value for the participating actors during the new service development (NSD) process. The authors are particularly interested in how participant value emerges in a multi-actor NSD process and how it can be conceptualized. Design/methodology/approach – The empirical research design comprised three extensive living lab experiments in a real end-user environment over a three years period. Findings – The study is illustrative by its nature and advances two main arguments through conceptual analysis and empirical illustration: NSD can be seen as the identification of actual and emerging needs and technologies and their matching; and the matching process builds on the interaction between the participants and is characterized by their individual motives to leverage the NSD process for value-in-context. Practical implications – A careful investigation of the different stakeholders' expectations of the NSD process provides a basis on which to create lucrative value propositions instead of approaching potential stakeholders with technology- or product-centric arguments. Originality/value – The paper opens avenues for further research to develop the current conceptualizations of NSD in launching the new service emergence perspective.

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