Managing the new service development process: towards a systemic model

Abstract

Purpose: When compared with the field of new product development, research on new services has seen fewer developments and offers less comprehensive insights. This paper tries to fill this gap by providing empirical findings from two qualitative longitudinal case studies of new service development. Knowledge on the management issues for developing new bank offerings efficiently is limited. Furthermore, recent research suggests that organisational learning can contribute greatly to the success of innovation projects. The aims of this paper are to provide a detailed description of the development process of a new financial product and to identify learning actions that may contribute to its effectiveness. Design/methodology/approach: The paper reports findings from a qualitative, longitudinal case study of a well‐known French bank, and of a retailer. The research focuses on the description of the process, the organisational issues involved and the decision making during the development process. Findings: The findings lead to the proposition of a model of new service development comprising a strong organisational learning component. Research and managerial implications are discussed for ways to better understand the new service development process and to enhance its effectiveness. The results reveal an informal development process consisting of a sequence of issues to solve and decisions to make. Multiple learning actions and strategies are identified that enhance the process's effectiveness and efficiency. Research limitations/implications: Generalisation of the proposed NSD model will require further qualitative and quantitative investigations. For the qualitative part, observations of the development of standardised offers are necessary to enrich the initial framework. Furthermore, non‐standardised offers would constitute a specific research field, given the dimensions of complexity and divergence of the delivery processes. For the quantitative part, the impact of learning process on results of the development may be assessed on the basis of measurements used in similar contexts, such as the impact of learning on the success of joint ventures. Originality/value: Findings suggest that learning during innovation should be supported for banks and retailers. Several opportunities for further research are therefore suggested.