THE CREATION OF NOVEL AND MARKETABLE SERVICE IDEAS

Novel and marketable service ideas are useful to most service enterprises. However, the literature has identified several reasons for innovations in services as lagging behind those in manufacturing. Some service enterprises believe that service ideas and innovations are readily imitated by competitors. Others view the impact of service innovations on profitability difficult to assess because specific innovative service elements are typically bundled with many other service elements when delivered to or used by customers. Some service enterprises do not have in-house groups specifically dedicated to innovative pursuits, making it difficult for them to systematically produce new service ideas. Furthermore, because services are usually produced and consumed concurrently, any failure tends to expose the service enterprise immediately, unlike the manufacturing companies which can minimize such risks of exposure by conducting pilot testing away from the marketplace. As a result, many service enterprises are said to shy away from aggressively pursuing new service development projects. It does not have to be this way. This paper describes the combinatorial, heuristic, and normatively guided method, which when correctly applied to a service enterprise enhances the generation of new service ideas in a systematic, speedy, and cost-effective manner, and without requiring the creation of a dedicated and rigid organizational structure. Virtual teams of the "stealth" type are set up to address innovation needs related to marketability and cost competitiveness. These teams may include frontline customer-facing employees as well as customers, suppliers, and other external experts, who can work together despite geographical and time-zone constraints. The application of this method toward developing a specific new service idea is discussed in greater detail. The integration of a "stealth" team can also be readily applied to the front end of a typical stage-gate service development process, whereby parallel teams are engaged to address critical issues and steps needed to successfully market a service idea before initiating costly development, thereby raising the service enterprises' overall probability of developing commercially successful new services over time.

Team Size and Decision Rule in the Performance of Simulated Monitoring Teams

A methodology is presented for randomly creating “teams” from a data pool of individual response records. Using this approach, the effects of two variables on team monitoring performance were investigated: (1) team size and (2) the decision rule employed in defining the requirements of a “team” response. Size of the simulated teams was varied from two to five members. The decision rule was varied from “parallel” in which a response by any one or more members produced a “team” response to “series” in which a “team” response occurred only if all members responded. “Parallel” teams were found to maximize correct detections while “series” teams eliminated all false alarms. For each decision rule, detection rate increased as a function of team size. For each team size, detection rate deteriorated as the decision rule required more members to respond correctly.