New service development: managing the dynamic between services and operations resources

Bonomi Santos, Juliana and Spring, Martin (2013) New service development: managing the dynamic between services and operations resources. International Journal of Operations and Production Management, 33 (7). pp. 800-827. ISSN 0144-3577

Abstract

Purpose Previous research suggested new service development (NSD) is characterized by less stable offerings, less formal processes and is more emergent than NPD. In face of these issues, it seems managers must concern themselves more with the underlying resources. To understand this distinctive nature of NSD, this study investigates the relationship between NSD and operations resources. Design Building on the resource and capabilities perspective, a multiple-case study was designed to investigate how the NSD is influenced by and reconfigures operations resources and capabilities. Data were collected in three providers of bespoke services for the B2B market. Findings We propose a model of NSD composed of three stages: emergence, accommodation and consolidation. This model describes the process that takes place when providers redeploy their operations resources and capabilities to implement new ideas they were presented with. Our findings also show the challenges associated with the reconfiguration of operations resources and capabilities and with the reconciliation of the requirements of the existing and new services. Limitations We looked at services successfully implemented in knowledge-intensive SMEs. Other studies could explore these NSD processes in other context and initiatives that failed. Practical implications The paper suggests shows the risks and efforts involved in using existing resources to take advantage of ideas that come along. Originality / value The model takes a fundamentally different perspective from many NSD models. It shifts the focus from managing the new service to managing the resources that underpin the evolving and emerging service ideas and offerings. This paper should interest people willing to understand these NSD practices.