New service development : a literature survey

Abstract

The multifaceted, complex process of new product development could be regarded as the single most important factor driving firm success or failure in the maturing telecommunications industry. The speedy introduction of innovative new services with a customer quality orientation is needed to excel in this extremely competitive environment. Approaches proposed to a service marketing strategy include the exploitation of similarities with product development, relating, or even transforming, the service to a product or something tangible, management of temporary supply/demand imbalances and service flowcharting/blueprinting. Sensitivity towards ethical issues is important to avoid a negative reputation and to get a name for being honest, fair and accepting of responsibility for the consequences of the service developed. Globalisation, deregulation (which causes increased competition) and the shifting of patent law in favour of the inventor drive the increased importance of intellectual property protection, to prevent competitors stealing inventions and new service concepts. To qualify for patent protection, a concept must be new, useful and not obvious to someone with knowledge in the field. In the case of new service development, one cannot apply all the principles and practices to protect intellectual property. However, it is surmised that an organisation can maintain a competitive advantage with new services by encapsulating and integrating such services in internal expert systems, software and firewalls to entry. Internal safeguards and the confidentiality of systems are obvious policies. Potential research topics are offered.