Similarities, differences and advantages, disadvantages of models of the NSD process : a meta-synthesis of literature

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Master!Thesis!

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Similarities*differences/and/advantages*/disadvantages/of/models/of/

the/NSD/process:/A/meta*synthesis/of/literature/

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MSc"Business"Administration3""

Entrepreneurship"and"Innovation"

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Faculty"of"Economics"and"Business"

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University"of"Amsterdam"

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Thesis"supervisor:"" Dr."W."van"der"Aa"

Author:""Angeliki"Papoutsi,"10604707"

Delivery"date:""29"June"2015"

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Statement!of!Originality!

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This/document/is/written/by/the/Student/[Angeliki/Papoutsi]/who/declares/to/take/full/responsibility/

for/the/contents/of/this/document./

I/declare/that/the/text/and/the/work/presented/in/this/document/is/original/and/that/no/sources/other/

than/those/mentioned/in/the/text/and/its/references/have/been/used/in/creating/it./

The/Faculty/of/Economics/and/Business/is/responsible/solely/for/the/supervision/of/completion/of/the/

work,/not/for/the/contents.

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ABSTRACT!! "

Purpose:" This" study" aims" to" examine" the" new" service" development" process" mainly" in" medium" and" large" service"organizations"and"compare"various"models"of"the"NSD"process"that"have"been"developed"as"result"of" empirical" research" and" literature" reviews." Our" main" focus" is" to" examine" the" structure" of" NSD" process," the" stages"and/"or"phases"involved"as"well"as"customer"integration"in"the"process."However,"the"models"are"also" analyzed"in"other"dimensions,"such"as"industry"application,"service"context"(b2b,"b2c),"service"type"etc.,"which" we" argue" will" help" managers" differentiate" these" models" and" understand" their" research" context" and" consequently"their"application"in"other"similar"cases"of"service"innovation"and"development.""Differences"and" similarities" as" well" as" limitations" and" advantages" of" the" various" models" are" derived" to" suggest" managerial" implications"for"managers"when"using"these"models."As"ultimate"goal"this"thesis"seeks"to"extend"prior"work"on" the" NSD" process" and" contribute" to" a" better" examination" of" the" existing" literature" in" NSD" processes" and" customer"involvement"in"NSD." " Methodology:"This"study"was"conducted"by"using"the"method"of"qualitative"meta3analysis"(meta3"synthesis)"of" findings"among"and"within"various"studies."Purposeful"sampling"of"cases"was"employed"with"regards"to"specific" selection"criteria."The"inductive"approach"for"theory"building"was"applied."Constant"Comparison"Analysis"was" used"for"coding"content"within"and"among"literature"and"reducing"the"sources"under"certain"themes."" " ! !

" INTRODUCTION!...!8"

1

1.1

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Background!of!the!research!problem!...!8

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1.1.1

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A"shift"to"service"economies"stresses"innovation"in"services"and"especially"open"

innovation"..."8

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1.1.2

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Importance"of"customers"role"in"service"innovation"..."9

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1.1.3

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Other"external"sources"of"knowledge"..."10

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1.2

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Problem!statement!...!10

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1.3

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Significance!of!the!Study!...!11

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1.4

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Academic!Relevance!...!11

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1.5

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Practical!relevance!...!12

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1.6

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Aim!and!Research!Questions!...!12

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1.7

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Structure!of!the!Thesis!(project!design)!...!13

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" LITERATURE!REVIEW!...!14"

2

2.1

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Structure!of!the!research!field!...!14

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2.2

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Service!Innovation!and!New!Service!Development!...!15

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2.2.1

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Service"innovation"approaches"..."15

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2.2.2

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Defining"service"innovation"and"new"service;"new"service"typologies"..."15

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2.2.3

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Defining"New"Service"Development"..."18

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2.2.4

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How"NSD"is"different"from"NPD"..."19

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2.2.4.1

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How"service"characteristics"impact"NSD"and"customer"involvement"..."19

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2.2.4.2

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Similarities"and"differences"in"Success"factors"between"NSD"and"NPD"..."21

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2.2.4.3

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Similarities"and"differences"in"the"form,"resources"and"activities"of"NSD"and"NPD"process"...."22

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2.3

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Main!models!of!the!NSD!process!present!in!the!literature!...!24

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2.3.1

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Scheuing"and"Johnson"(1989)"model"3"Normative"model"of"New"Service"Development"."24

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2.3.2

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Edgett"and"Jones"(1991)"Flow"Chart"model"of"NPD"Processing"..."25

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2.3.3

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Edvardsson"and"Olsson"(1996)"model"..."26

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2.3.4

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Tax"and"Stuart"(1997)"model"3""Planning"cycle"of"success"for"NSD"..."28

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2.3.5

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Bitran"&"Pedrosa"(1998)"model"..."29

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2.3.6

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Johnson"et"al."(2000)"model"–"New"Service"Development"Process"Cycle"..."30

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2.3.7

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Alam"and"Perry"(2002)"models"of"NSD"..."32

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2.3.8

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De"Jong"et"al"(2003)"model"for"NSD"..."33

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2.3.9

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Stevens"&"Dimitriadis"(2005)"systemic"learning"model"for"NSD"..."34

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2.3.10

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Shekar"(2007)"NuServ"model"of"service"development"..."35

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2.3.11

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Froehle"&"Roth"(2007)"3"A"resource3process"framework"of"new"service"development"."36

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2.3.12

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Reinoso"et"al"(2009)"NSD"model"utilizes"resources,"processes,"and"the"customer"..."36

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2.3.13

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Hossain"et"al"(2010)"..."37

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2.3.14

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Liedtka"and"Ogilvie"(2011)"..."37

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2.4

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Chapter!Summary!...!38

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" RESEARCH!METHODOLOGY!...!40"

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3.1

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Research!design!...!40

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3.1.1

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Research"Philosophy"..."40

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3.1.2

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Research"Approach"..."40

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3.1.3

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Research"Methods"..."40

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3.1.4

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Research"Choice"..."40

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3.2

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Research!instruments!and!procedures!...!42

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3.2.1

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Literature"search"..."42

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" DATA!ANALYSIS!AND!RESULTS!...!49"

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4.1

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Analyzing!method!...!49

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4.2

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Analysis!of!the!methodology!of!the!primary!research!studies!...!49

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4.3

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Results!on!the!methodology!of!the!empirical!papers!...!66

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4.4

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Selection!of!the!NSD!process!models!for!the!phase!and/or!stage!analysis!...!70

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4.5

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Analysis!of!phases!and/or!stages!of!the!empirical!and!conceptual!papers!on!NSD!process

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70

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4.6

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Results!on!differences!^!similarities!and!advantages^disadvantages!on!the!phase^stage!

analysis!of!the!NSD!process!models!...!75

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4.7

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Results!on!differences!^!similarities!and!advantages^disadvantage!on!the!type!of!the!

examined!models!...!75

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4.8

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Results!of!main!activities!within!the!stages!of!NSD!...!79

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4.9

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Results!on!main!activities!of!customers!in!stages!of!NSD!...!81

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" GENERAL!DISCUSSION!AND!CONCLUSIONS!...!83"

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5.1

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Discussion!on!the!similarities!^!differences!and!benefits!^!challenges!of!the!models!...!83

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5.1.1

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Direction"Phase"..."83

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5.1.1

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Design"Phase"..."84

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5.1.2

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Analysis"Phase"(and"Planning)"..."85

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5.1.3

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Development"Phase"..."86

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5.1.1

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Testing"Phase"..."86

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5.1.2

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Launching"Phase"..."87

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5.1.3

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Concluding"remarks"..."87

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5.2

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A!suggested!framework!for!service!managers!...!89

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5.3

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Conclusion!...!90

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5.4

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Limitations!...!92

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" APPENDIX!1!–!SERVICES!DEFINITIONS!^!COMPONENTS!OF!SERVICES!^!SERVICE!

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CHARACTERISTICS!...!94"

1.1

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Defining!services!...!94

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1.1.1

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Service"as"an"activity,"series"of"activities"or"process"..."94

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1.1.2

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Services"as"a"solution"..."94

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1.1.3

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Services"as"an"experience"..."94

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1.2

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Key!Positions!of!definitions!of!services!regarding!the!distinguishing!characteristics!of!

services.!...!94

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1.3

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Components!of!a!service!...!95

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1.3.1

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Managing&the&Augmented&Service&Offering&&3!Grönroos’(Augmented!Service!Offering"

(1990;"2000)"..."96

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1.4

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Characteristics!of!services!and!impact!on!service!delivery!...!98

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" APPENDIX!2!–!CUSTOMER!AND!CUSTOMER!INVOLVEMENT!DEFINITIONS!^!OBJECTIVES!

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AND!EFFECTS!OF!CUSTOMER!INVOLVEMENT!–!CUSTOMER!CHARACTERISTICS!AND!TYPES!

OF!CUSTOMERS!INVOLVED!IN!NSD!...!99"

2.1.1

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Defining"customer"..."99

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2.1.2

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Defining"customer"involvement"in"NSD"..."99

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2.1.3

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Characteristics"of"Customers"..."100

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2.1.4

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Types"of"customers"that"are"involved"in"service"innovation"..."100

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2.1.5

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Objectives"of"Customer"Involvement"..."102

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2.1.6

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Effects"of"Customer"Integration"..."102

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" APPENDIX!3!–!LITERATURE!SEARCH!THAT!RESULTED!FROM!KEY!WORDS!AND!INITIAL!

3

REVIEW!AND!EVALUATION!OF!PAPERS!...!105"

" APPENDIX!4!–!OVERVIEW!OF!THE!PRIMARY!RESEARCH!STUDIES!RELATED!TO!THE!NSD!

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PROCESS!(PURPOSE,!METHODOLOGY!AND!MAIN!FINDINGS)!...!159"

" APPENDIX!5!...!164"

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" BIBLIOGRAPHY!...!176"

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List!of!figures:!!

" Figure/1:/Growth/vectors/served/by/product/development/variants/(Johne/and/Storey,/1998)/.../16" Figure/2:/Six/dimensional/model/of/service/innovation/and/the/(dynamic)/capabilities/for/realising/new/service/ experiences/and/solutions/(Den/Hertog/et/al.,/2010)/.../17" Figure/3:/Normative/model/of/New/Service/Development/(Scheuing/and/Johnson,/1989)/.../25" Figure/4:/Prerequisites/Of/The/Service/*/Edvardsson/and/Olsson/(1996)/and/Edvardsson/(1997)/.../26" Figure/5:/An/integration/model/of/the/service/development/*/Edvardsson/(1997)/.../28" Figure/6:/The/planning/cycle/of/success/for/new/service/integration/*/Tax/and/Stuart/(1997)/.../29" Figure/7:/General/Sequence/of/Stages/of/Development/Projects/*/Bitran/&/Pedrosa/(1998)/.../30" Figure/8:/New/Service/Development/Process/Cycle//*/Johnson/et/al./(2000)/.../31" Figure/9:/the/dynamics/of/NSD/*/Johnson/et/al./(2000)/.../32" Figure/10:/Two/models/of/new/service/development/*/Alam/and/Perry/(2002)/.../33" Figure/11:/A/model/for/new/service/development/*/De/Jong/et/al/(2003)/.../34" Figure/12:/The/systemic/learning/model/for/new/service/development/*/Stevens/&/Dimitriadis/(2005)/.../35" Figure/13:/NuServ/model/of/service/development/*/Shekar/(2007)/.../36" Figure/14:/The/Resource*Process/Framework/(RPF)/of/New/Service/Development./.../36" Figure/15:/The/Resources*Processes*Customer/Framework/*/Reinoso/et/al/(2009)/.../37" Figure/16:/Suggested/NSD/process/framework/.../90" Figure/17:/The/four/components/of/a/service/(Oliver/and/Rust,/1994)/.../96" Figure/18:/The/augmented/service/offering/(Gronroos,/2007)/.../98" " "

List!of!tables:!

" Table/1:/Classification/of/new/services/(Johnson/et/al./2000)/.../16" Table/2:/Success/factors/(directly)/related/to/the/NSD/process/.../34" Table/3:/Evaluation/of/selected/papers/.../43" Table/4://Primary/research/studies/related/to/the/NSD/process/.../47" Table/5:/Conceptual/models/related/to/the/NSD/process/.../47" Table/6:/Design/thinking/process/models/.../48" Table/7:/Analysis/of/methodology/of/empirical/studies/on/NSD/process/.../51" Table/8:/Stages"identified"from"the"analysis"of"all"NSD"models"and"points"of"stage"repetition/.../72" Table/9:/Phases/analysis/of/all/NSD/process/models/and/comparison/with/the/Design/thinking/model/.../74" Table/10:/Similarities/and/differences/in/NSD/models/and/the/design/thinking/process/in/various/dimensions/..../76"

Table/13:/Definitions/of/a/service/and/positions/to/the/distinguishing/characteristics/of/services/.../95" Table/14:/Citations,/Aim*key/themes,/Research/type,/Data/collection/and/analysis,/firm/size,/Industry,/Region/of/ the/reviewed/papers/.../105" Table/15:/Purpose,/Methodology,/Results/*/findings/and/keywords/of/reviewed/papers/.../122" Table/16:/Overview/of/primary/research/studies/related/to/the/NSD/process/.../159" Table/17://Detailed/description/and/comparison/of/stages/of/all/NSD/process/models/.../164" " "

INTRODUCTION!

1

The"New"service"development"process"as"well"as"customer"involvement"in"NSD"are"underexplored"areas"that" need"increased"consideration"from"firms"in"the"modern"service"dominated"and"competitive"markets."Since"the" NSD"process"itself"as"well"as"customer"participation"in"it"have"been"proved"to"represent"vital"factors"for"the" market"success"of"new"service"offerings,"there"is"definitely"a"need"to"understand"how"the"NSD"process"should" be" managed" and" how" customers" can" be" integrated" in" the" innovation" effort" so" that" both" the" firms" and" customers"goals"are"attained;"

The/ aim/ of/ this/ thesis/ is/ to/ focus/ on/ studying/ the/ NSD/ process/ mainly/ in/ medium/ and/ large/ service/ organizations./We/will/target/our/attention/on/reviewing/and/comparing/models/and/research/on/new/service/ development,/originating/predominantly/by/qualitative/primary/research/in/medium/and/large/service/firms/or/ organizations/that/want/to/produce/new/service/experiences/or/solutions./In/particular,/within/the/scope/of/this/ thesis/is/to/examine/the/similarities/and/differences/among/the/research/studies/and/models/developed/as/well/ as/ their/ limitations/ and/ advantages;/ We/ will/ base/ our/ comparison/ in/ various/ dimensions/ such/ as/ industry/ application,/service/context,/research/context/etc./but/our/main/focus/will/be/on/the/stages/and//or/phases/of/ the/NSD/process/frameworks/and/customer/integration/in/the/process.//

1.1

Background-of-the-research-problem-1.1.1 A/shift/to/service/economies/stresses/innovation/in/services/and/especially/open/innovation/

Services/became/an/essential/part/of/developed/economies/all/over/the/world."Over"recent"decades,"modern" economies" such" as" Europe" and" the" US" have" experienced" a" macroeconomic" shift" resulting" from" a" growing" service" and" declining" manufacturing" sector" (D’Agostino" et" al.," 2006;" Rodie" and" Martin," 2001)." The" service" industry" accounts" for" 75%" of" all" economic" activities" worldwide" (Visnjic" and" Neely," 2012)" and" is" currently" recognized"as"the"main"source"of"people’s"jobs"and"wealth"(Edvardsson"et"al.,"2010)"since"service"related"jobs" have" increased" their" share" in" total" employment" (D’Agostino" et" al.," 2006)." At" present," value" creation" comes" mainly"from"knowledge"and"intangible"products"than"from"physical"products"(Cáceres"and"Guzmán,"2014)."The" production" of" physical" goods" has" become" secondary" to" firms," even" those" that" were" predominantly" manufacturing;"instead"they"are"now"focusing"on"the"provision"of"“business"solutions”"by"transforming"their" business"model"(Uppenberg"et"al.,"2010)."Prominent"examples"of"this"trend"are"leading"organizations"such"as" IBM,"IKEA"and"Nike.""

The"macroeconomic"reform"resulted"in"intense"and"dynamic"conditions"in"the"market."Some"of"the"most" challenging" and" competitive" markets," experience" businesses" in" the" service" sector," where" products" are" intangible." Advances" in" information" technology" (Including" the" rapid" growth" of" the" Internet)," improved" production"capabilities"and"heightened"customer"expectations,"have"simultaneously"fueled"competition"and" created" business" opportunities" (Rodie" and" Martin," 2001)." Service" companies" are" forced" to" enhance" their" innovation" efforts" in" order" to" improve" their" competitiveness," achieve" growth" and" sustain" their" survival" (Fitzsimmons" and" Fitzsimmons," 2000a)." Thus," New" Service" Development" (NSD)" has" become" as" a" strategic" imperative"for"most"service"firms"(Alam,"2006).""

The" role" of" innovation" in" services" has" been" historically" underplayed" both" from" statistical" services" and" economic" research." Analysis/ on/ innovation/ has/ always/ centered/ on/ manufacturing." However," mirroring" the" substantial"role"in"growth"that"services"play"in"modern"economies,"efforts"have"recently"been"made"to"better" account" for" innovation" in" services" and" the" study" of" innovation" in" services" has" emerged" as" an" important" research" field" (Droege" et" al.," 2009;" Uppenberg" et" al.," 2010)." However," little" scientific" knowledge" has" been" attained"about"the"innovation"process"in"the"development"of"new"services"(Droege"et"al.,"2009).""

Current" research" proves" that" there" is" great" potential" for" service" firms" that" innovate." Aas" and" Pedersen" (2010)" have" identified" five" categories" of" positive" effects" of" service" innovation" on" a" firm" level." These" are" business"process"effects"such"as"improved"productivity"and"service"delivery"capacity"and"decrease"of"internal" costs"and"risks;"capability"effects"such"as"employee"satisfaction"and"growth;"relationship"effects"which"among"

finally" competitiveness" effects" such" as" strategic" performance," creation" of" new" markets" and" competitive" position"(Aas"and"Pedersen,"2010)."

In"response"to"the"dramatic"macroeconomic"shift"in"the"business"landscape,"several"innovation"strategies" have"emerged"to"deal"with"present"challenges."At"the"center"of"modern"innovation"strategies"lies"the"idea"that" companies" need" to" become" more" open," engage" with" their" external" environment" and" tap" into" sources" of" knowledge"that"lie"outside"the"traditional"boundary"of"the"company"(Chesbrough,"2003)."The"interaction"and" exchange" of" information" is" the" essence" of" any" innovation" endeavor." As" Graig" Wynett" –general" manager" of" future"growth"initiatives"in"Procter"&"Gamble3"puts"it:"“Companies"must"realize"that"events"outside"their"walls" will" have" greater" impact" on" future" innovation" successes" that" anything" happening" inside" these" walls”" (Chesbrough," 2003)." With" access" to" fresh" strategic" concepts," several" companies" have" indeed" become" more" open" in" the" way" they" innovate" and" have" started" engaging" customers" in" their" innovation" process" as" well" as" participating"in"many"other"activities"that"could"be"termed"open"(Chesbrough,"2012)."

Of"course;"internal"sources"of"ideas"are"always"important"to"facilitate"innovation."Often"those"working"in" the" customer" operations," for" example" are" the" ones" who" suggest" new" services." According" to" de" Jong" and" Vermeulen" (2003)," the" involvement" of" front*line/ employees" increases" the" likelihood" of" a" successful" implementation"of"innovative"services."The"authors"suggest"the"use"of"sales"and"service"delivery"personnel"in" service"innovation"since"the"last"have"usually"an"excellent"view"on"unsatisfied"client"needs"and"are"the"first"to" recognize"opportunities"for"innovation(Jeroen"P.J."de"Jong"and"Patrick"A.M."Vermeulen,"2003)."Furthermore," sometimes"formal"brainstorming"techniques"with/company/executives/or/other/personnel"can"be"used"in"idea" generation."Company"research/and/development/(R/&/D)/is,"of"course,"a"vital"source"for"new"service"ideas"and" this"is"something"that"also"the"academic"circles"have"been"trying"to"encourage"(Saari,"2007)."Lastly,"product/ champions,"is"another"way"of"utilizing"company"personnel"in"innovation"processes."The"product"champion"is" someone" in" an" informal" role" that" pushes" a" new" product" or" service" forward" and" is" also" involved" in" the" implementation"stage"of"a"new"service"(Jeroen"P.J."de"Jong"and"Patrick"A.M."Vermeulen,"2003)."

1.1.2 Importance/of/customers/role/in/service/innovation//

Companies"are"gradually"altering"the"ways"in"which"they"generate"ideas"and"bring"them"to"market."One"source" of"knowledge"is"customers"(Melton"and"Hartline,"2010)."The"inseparable"nature"of"customer"as"both"producer" and"consumer"of"services"makes"it"vital"to"incorporate"customers"in"the"NSD"process"(Matthing"et"al.,"2004)." According" to" (Chesbrough," 2011)" successful" new" service" development" requires" thorough" information" and" understanding"of"customers"and"their"needs."Firms"must"determine"their"customer’s"essential"needs,"the"jobs" they" are" trying" to" do" and" how" they" measure" success" from" service" outcomes" (Bettencourt" et" al.," 2013)." To" facilitate"proactive"learning"about"the"customer"and"unveil"latent"needs"it"is"suggested"to"engage"customers"in" the"development"process"or"observe"customers"in"real"action"(Jonas"et"al.,"2013;"Matthing"et"al.,"2004).""

There" are" numerous" advantages" that" have" been" recognised" from" researchers" to" derive" for" firms" that" involve"customers"in"research"and"design"processes."These"advantages"can"range"from"political,"via"economic," to"practical"benefits"(Edvardsson"et"al.,"2010)."By"integrating"customers"into"the"innovation"processes,"firms" can"facilitate"the"development"of"better;"differentiated"new"services"that"match"customer"needs,"reduce"the" overall"time"for"the"development"effort"and"achieve"customer"education"about"the"use"and"attributes"of"a"new" service"(Alam,"2002;"Jonas"et"al.,"2013;"Kaasinen"et"al.,"2010;"Matthing"et"al.,"2004;"Schaarschmidt"and"Kilian," 2014)."Customer"integration"can"also"help"in"reducing"the"uncertainty"typically"surrounding"the"development" process" e.g.," environmental," phase3related," and" user" requirement" ambiguity" (Sandén," 2007)." Further," it" can" increase"customer"satisfaction"and"market"share"and"reduce"development"costs"(Straub"et"al.,"2013)."What’s" more,"the"practice"of"obtaining"user"input"can"speed"a"service’s"acceptance"in"the"market,"improve"customer" loyalty"and"long"term"relationships"and"allow"a"firm"to"use"customers"as"innovators"for"the"rapid"diffusion"of" innovations"(Alam,"2002).""

The" core" objective" of" customer" involvement" is" to" create" new" successful" service," but" the" company" could" define" some" other" objectives" for" the" involvement," for" example" testing" or" enhancing" the" customer’s" competence"(Larbig3Wust,"2010)."The"rationale"of"customer"participation"in"NSD"is"that"customer"input"(eg." Ideas," information," knowledge," prototypes" and/or" solutions)" in" several" phases" of" the" development" process" should"influence"the"design"of"new"service"to"better"fit"customer"needs"(Sandén,"2007)."

Along"these"lines,"some"firms"have"intensified"their"efforts"to"integrate"customers"in"NSD"by"utilizing"them" either"as"resources"of"ideas,"co3developers"or"users"of"products"or"services"in"order"to"identify"current"and" future"customer"needs"(Mukhtar"et"al.,"2012;"Pedrosa,"2012)."Customers’"roles"have"evolved"from"those"of" passive"users"to"those"that"contribute"to"successful"innovations"by"taking"primary"roles"in"the"development"of" services"and"becoming"an"important"source"of"competitive"advantage"(Mukhtar"et"al.,"2012)." Previous"research"shows"that"the"particular"way"in"which"customers"are"integrated"has"a"major"impact"on" the"quality"of"‘use"information’"gained,"and"therefore"on"NSD"(Edvardsson"et"al.,"2010)."Visnjic"et.al."(2013)" highlight"that"the"level"of"involving"the"customer"and"responsiveness"is"crucial"in"the"way"of"achieving"service’" success" in" complex" service" providers" (Visnjic" and" Neely," 2012)." When" involving" customers" the" stage" of" the" involvement"should"be"considered."According"to"Alam"and"Perry"(2002)"customers"can"be"involved"during"each" stage"of"the"new"service"development"so"that"they"can"help"firms"to"get"the"service"idea"right"in"the"initial" development" phase" and" to" evaluate" the" complete" service" offering" before" the" full" rollout" (Alam" 2002)." However," the" benefit" of" the" customer" involvement" can" vary" depending" on" the" stage" (Sandén," 2007)." Additionally" the" company" should" decide" the" extent" of" customer" involvement," whether" it" is" low" like" passive" acquisition"of"input"or"information"and"feedback"or"higher"like"consultation"or"representation"(Larbig3Wust," 2010)." Customers" involved" in" a" company’s" action" are" usually" selected" on" the" basis" of" personal" traits," motivation,"knowledge"or"the"length"of"the"relationship"(Larbig3Wust,"2010)."

1.1.3 Other/external/sources/of/knowledge/

Certainly" other" external" sources" of" ideas" are" also" important" for" service" innovation;" the" primary" stakeholders"are"considered"to"be"the"providers,/distributors,/authority,/and/competitors."Each"of"these"raises" different" concerns" about" the" service" offering," and" therefore" each" requires" a" different" reasoning" strategy" (Maglio"and"Spohrer,"2013)."For"example,"distributors"and"those"close"to"the"market"can"provide"information" about"consumer"problems"and"new"service"possibilities."Also,"supplies"are"a"valuable"source"of"information"a" since"they"can"convey"ideas"to"the"service"provider"about"new"concepts,"methods,"and"materials"that"can"be" used" to" develop" new" services." Information" about" the" competition" can" also" be" obtained" this" way." Further," international"trade"fairs"are"excellent"places"to"understand"competitors,"observe"trends,"and"visit"distributors" and" suppliers" of" the" industry." Copy3cutting" services" from" competitors" is" another" way" of" acquiring" external" ideas." On" our" view," competitors" set" the" business" context," which" in" turn" depends" on" arrangements" among" others;" thus," competitors" are" stakeholders" precisely" because" we" must" consider" their" perspectives" when" developing"value"propositions(Maglio"and"Spohrer,"2013)."This"can"be"done"in"several"different"ways:"watching" advertisements,"buying"and"using"their"services,"analyzing"sales"if"possible"etc."One"can"also"pick"up"ideas"from" other"markets,"for"example,"using"a"benchmark"from"a"similar"function"but"a"different"business"(Saari,"2007).""

However," the" scope" of" our" thesis" is" to" concentrate" on" the" customers" as" an" external" source" of" service" innovation" for" large" customer" oriented" organizations" and" consequently" stakeholders" such" as" the" above" mentioned"will"not"be"main"part"of"our"analysis."

1.2

Problem-statement-A"systematic"development"process"and"customer"involvement"in"NSD"have"been"both"recognized"to"be"vital" for" successful" innovation" (Shekar," 2007)." Modern" service" firms" need" to" innovate," be" open" and" respond" to" market" needs;" they" should" understand" how" to" manage" and" organize" their" NSD" process" and" incorporate" external" sources" such" as" customers" so" as" to" enhance" their" innovation" capabilities" and" improve" financial" performance.""

Nevertheless," so" far" statistics" show" high" service" failure" rate" for" several" service" firms," reaching" at" levels" between"40"and"75"percent"(Alam"and"Perry,"2002;"Edvardsson"et"al.,"2010)."This"is"due"to"the"lack"of"efficient" development" process" and" up3front" homework" as" well" as" insufficient" customer" orientation" and" input" (Edvardsson" et" al.," 2010)." The" lack" of" understanding" of" market" needs" was" the" leading" reason" cited" for" new" product"and"service"failure"as"quoted"in"Johne"&"Storey’s"comprehensive"review"of"service"development"in"

insights" are" available" in" the" extensive" new" product" development" (NPD)" literature," which" can" be" considered" while" developing" services." However," it" is" recognized" that" there" are" a" number" of" aspects" and" characteristics" distinctive"to"services,"which"are"likely"to"affect"its"development."One"of"these"is"the"role"that"users"and"service" staff"can"play"in"NSD"(Shekar,"2007)."New"service"development"has"a"similar"development"process"to"product" development," but" there" are" significant" differences" in" the" activities" and" the" research" techniques" (Johne" &" Storey,"1998).""

(Alam"and"Perry,"2002)"argue"that"there"is"little"scientific"knowledge"and"incomplete"picture"of"how"new" services" are" developed." That" means" the" strategies" and" tactics" for" developing" new" services" are" inadequate" (Droege"et"al.,"2009)."To"add"to"these,"the"literature"is"almost"silent"on"the"details"of"NSD"stages,"how"they"are" managed"and"their"interface"with"the"customers"(Alam"and"Perry,"2002;"Edvardsson"et"al.,"2010)."Academics" and"business"managers"generally"agree"that"customer"and"frontline"employee"involvement"in"the"NSD"process" results"in"a"more"successful"service"product,"but"there/has/been/little/research/on/how/managers/can/optimize/ customer/and/frontline/employee/participation/to/produce/superior/financial/and/operational/outcomes/for/the/ innovation"(Melton"and"Hartline,"2010)."In"the"same"line,"(Pedrosa,"2012)"argues"that"the"innovation"literature" has"ignored"the"dynamic"nature"of"the"process"and"how"to"integrate"customers"into"each"stage"and"reports" little" about" the" activities" companies" should" undertake" to" leverage" customer" integration" for" successful" innovation"development.""

Customer"involvement"in"NSD,"is"not"a"simple"task,"many"factors"have"to"be"taken"into"consideration"(Enkel" et" al.," 2009)" due" to" the" unique" characteristics" of" services" (intangibility," simultaneity," perishability," heterogeneity)" and" how" these" impact" the" development" and" delivery" of" service" offerings" to" customers./ According/ to/ (Matthing" et" al.," 2004)," how/ to/ integrate/ customers/ depends/ on/ their/ experiences,/ the/ type/ of/ value/creative/relation/with/customers,/customer/structure,/what/type/of/innovation/that/are/sought/after/and/ other/related/factors."

As/follows,/taking/into/account/that/the/process/of/new/service/development/needs/further/exploration/and/ understanding/and/further/integrating/customers/in/new/service/development/is/a/rather/complicated/task;/it/is/ of/high/importance/to/assess/the/recent/studies/on/NSD/and/see/how/these/subjects/are/discussed/and/what/are/ the/ similarities/ and/ differences/ and/ well/ as/ advantages/ and/ disadvantages/ of/ these/ research./ Further,/ challenges/ that/ can/ be/ revealed/ for/ service/ managers/ when/ using/ these/ models/ will/ be/ derived./ Applying/ models/that/have/been/derived/as/a/result/of/empirical/research/in/the/service/industry/could/be/valuable/to/ many/firms;/however/it/is/needed/to/take/in/our/regard/the/context/of/the/research/as/well/as/the/quality/of/the/ work/of/these/studies/so/that/we/can/judge/and/be/aware/of/challenges/of/applying/these/models.//

1.3

Significance-of-the-Study-The" research" will" provide" a" clearer" picture" of" how" the" development" processes" is" formed" and" managed" in" medium"and"large"service"organizations,"usually"when"customers"are"also"involved"in"the"process."It"aspires"to" find" useful" implications" regarding" the" innovation" process" and" customer" involvement" practice" that" could" possibly" guide" innovation" management" processes." This" thesis" makes" important" contributions" to" the" current" body"of"knowledge"and"aims"to"provide"insight"towards"a"subject"where"there"is"little"empirical"research"in" comparison" to" the" growth" of" the" importance" of" the" service" industry" and" service" innovation" in" modern" advanced"economies."" 1.4 Academic-Relevance-In"particular,"concerning"the"NSD"process,"researchers"have"been"studying"the"trend"over"the"last"decade." Their"research"focused"on"developing"a"comprehensive"understanding"of"the"process,"its"structure,"the"main" phases,"stages"and"activities"of"new"service"development,"main"goals"e.g."(Alam,"2002;"Alam"and"Perry,"2002;" Bitran"and"Pedrosa,"1998;"Edvardsson"and"Olsson,"1996;"Hossain"et"al.,"2010a;"Johnson"et"al.,"2000;"Kaasinen" et" al.," 2010;" Menor" et" al.," 2002a;" Reinoso" et" al.," 2009;" Scheuing" and" Johnson," 1989;" Shekar," 2007;" Tax" and" Stuart,"1997).!!

Furthermore,"the"use"of"customers"as"co3developers"of"new"services"is"a"relatively"new"field"of"research;" yet" it" was" given" increased" attention" in" the" service" and" management" literature" in" the" last" years." Several"

different"concepts"have"been"used"to"describe"the"collaborative"innovation"activities"between"a"supplier"and" customer." In" these" are" included:" the" collaborative" client" provider" value" creation" process" e.g." (Moller" et" al.," 2008),"customer"role"in"the"process"e.g."(Alam"and"Perry,"2002;"Chervonnaya,"2003;"Edvardsson"et"al.,"2012;" Kaasinen"et"al.,"2010;"Mukhtar"et"al.,"2012;"Romero"and"Molina,"2011;"Sandén,"2007)."Moreover,"customer" involvement"e.g."(Alam,"2002;"Huffman"and"Skaggs,"2010;"Kuusisto"and"Riepula,"2011;"Martin"Jr"and"Horne," 1995,"Nicolajsen"&"Scupola,"2011),"user"involvement"(e.g."Alam,"2002),"user"involvement"in"service"innovation" e.g."(Matthing"et"al.,"2004)"customer"participation"e.g."(Fang"et"al.,"2008),"lead"user"method"e.g."(Franke"et"al.," 2006;"Von"Hippel,"1986),"user"innovation"e.g."(Raasch"et"al.,"2008),"customer"orientation"(e.g."Alam"&"Perry," 2002),"customer"interaction"(e.g."Alam,"2006),"collaborative"innovation"e.g."(Greer"and"Lei,"2012)."To"describe" and"explore"further"the"empirical"phenomenon"of"customer"involvement"researchers"have"been"investigating" notions"on"the"intensity"of"customer"involvement"e.g."(Alam,"2002;"Huffman"and"Skaggs,"2010;"Kuusisto"and" Riepula,"2011;"Martin"Jr"and"Horne,"1995),"objectives"of"customer"involvement"e.g."(Alam,"2002),"modes"of" customer" involvement" e.g." (Alam," 2002;" Kang" and" Kang," 2014)," positive" and" negative" effects" of" customer" participation"in"NSD"e.g."(Carbonell"et"al.,"2009;"Cheung"and"To,"2011;"Magnusson,"2003;"Mustak"et"al.,"2013;" Nicolajsen" and" Scupola," 2011)," users’" motivations" e.g." (Roberts" et" al.," 2013)," user" input" and" knowledge" e.g." (Ooi"and"Husted,"2014),"characteristics"of"customers"and"customer"types"e.g."(Hippel,"2005;"Von"Hippel,"1986;" Kristensson"et"al.,"2004a;"Larbig3Wust,"2010;"Magnusson,"2003,"2009)."

1.5

Practical-relevance-Companies,"especially"the"larger"ones,"are"trying"to"incorporate"customers"as"central"contributors"of"service" innovations."In"practice"a"few"companies"make"use"of"this"competitive"advantage"(Alam,"2002),"examples"can" be" found" usually" in" international" organizations" such" as" Proctor" &" Gamble" (P&G)" who" have" introduced" user/open"innovation"models"and"methods"in"their"development"processes."

Additional" examples" of" firms" that" apply" customer" involvement" in" new" service" development" are" for" example:"user"idea"competition"at"Starbucks,"customer"idea"contest"at"Staples,"innovation"jam,"an"internally" focused"idea"generation"project"at"IBM,"Cool"Software,"a"sensing"platform"to"identify"future"trends"at"Intel." Moreover," Finnish" organizations" are" very" open" to" innovation" collaboration" with" all" actors." Customer" collaboration" is" also" very" noticeable" for" organizations" from" Denmark," Norway," UK," and" Sweden." German," Finnish" and" Austrian" organizations" are" on" top" in" collaboration" effort" with" universities" as" partners" (Einar" Svansson)." The" battle" in" the" competitive" and" intense" service" landscapes" will" lay" the" ground" for" the" best" innovators"to"be"ahead"of"the"market.""

The" practical" (managerial)" relevance" of" this" study" is" to" develop" a" better" understanding" of" how" the" development"process"may"be"formed"within"medium"and"large"service"organizations"and"firms"in"developed" countries."Also,"how"customer"participation"may"be"utilized"appropriately"for"new"service"success."The"results" of"this"thesis"lead"to"a"strategic"advice"to"service"managers"so"that"they"can"make"use"of"current"empirical"and" conceptual"NSD"models"that"appear"within"contemporary"service"innovation"literature." Thus/far/and/to/the/researchers/best/knowledge,/there/has/not/been/an/evaluation/and/meta*synthesis/of/ research/studies/that/suggest/NSD/process/models./It/is/regarded/that/this/research/will/provide/insights/into/ this/ area/ that/ can/ assist/ service/ firms,/ and/ especially/ medium/ and/ large/ companies,/ which/ aim/ to/ involve/ customers/in/their/innovation/development/efforts./

1.6

Aim-and-Research-Questions-As" it" was" explained" in" the" problem" statement," the" process" of" NSD" has" not" been" extensively" researched." Further,"studies"dealing"with"customer"involvement"in"NSD"process"have"been"scarce."That"said,"the"purpose" of"the"thesis"to"increase"the"understanding"of"the"NSD"process"and"to"discover"similarities"and"differences"as" well" as" limitations" and" advantages" of" the" various" models" in" the" innovation" literature." " As" a" result," we" will" derive" a" number" of" key" challenges" for" innovation" managers" in" using" these" models" for" service" innovation"

stages"of"the"NSD"process,"the"activities"undertaken"for"developing"new"services."" Departing"from"a"limited"research"on"NSD"and"various"gaps"on"the"concept"of"customer"involvement;"this" thesis"is"guided"by"the"following"research"question:" " _ How!can!the!New!Service!Development!process!be!structured!in!medium!and!large!service!firms?! " To"answer"the"main"research"question"we"will"explore"and"analyze"(mainly)"empirical"research"from"the"NSD," innovation"management"and"marketing"field.""" " The"following"sub3questions"are"used"to"guide"the"research"in"more"detail:"" " 1 Which-are-the-similarities-and-differences-in-the-NSD-process-models-and-research-to-date?-2 Which-are-the-limitations-and-advantages-of-these-models-and-research?--" The/analysis/of/the/literature/will/be/oriented/towards/medium/and/service/firms/or/organizations./That/means,/ that/increased/attention/in/our/analysis/will/be/paid/in/how/these/models/and/theories/support/the/process/of/ new/service/development/in/medium/and/large/service/firms/that/want/to/involve/customers/and/co*design/to/ develop/services/that/respond/to/market/needs./"/ 1.7

Structure-of-the-Thesis-(project-design)-Previously," the" first" section" of" the" thesis," the" Introduction" begins" by" presenting" the" Background" Of" The" Research"and"the"Problem"Statement."It"follows"the"Significance"of"the"study"and"the"academic"and"practical" relevance."The"aim"of"the"research"and"research"questions"are"introduced"as"well"as"the"research"approach" and"design.""

As" a" next" step," the" section" Literature" Review" will" give" an" overview" of" the" theoretical" contributions" on" service" innovation" and" New" Service" Development." Main" models" that" have" been" developed" in" literature" concerning"the"process"of"developing"new"services"will"be"discussed"in"detail."

Further,"the"section"Research"Methodology"will"describe"the"methods"used"for"data"collection"and"analysis." It" will" introduce" how" the" relevant" primary" research" for" conducting" secondary" analysis" was" selected" and" present"the"inclusion"and"exclusion"criteria."Furthermore,"it"will"analyze"how"the"data"were"extracted,"coded" and"categorized"from"the"material"of"analysis."

In"the"chapter"Results,"the"research"findings"will"be"presented."These"will"include"the"results"of"the"qualitative" meta3synthesis"and"key"inter3related"themes"that"will"arise"with"relevant"reference"to"the"studies."

The" Discussion" section" will" critically" analyze" the" results" of" the" meta3synthesi" referring" back" to" core" literature."Furthermore"the"theoretical"contributions"and"practical"implications"of"the"thesis"will"be"presented."" Conclusions" will" summarize" the" main" research" findings" and" arguments" and" answer" the" research" question." Next,"Assumptions,"limitations"and"scope"(delimitations)"will"highlight"the"self3evident"truths"of"the"research;" discuss" things" over" which" the" researchers" have" no" control" (eg." researcher" biases," perceptual" misrepresentations)," and" refer" to" the" extent" of" this" qualitative" research" study." The" chapter" will" end" with" a" discussion"of"the"criteria"for"evaluation"of"the"study"and"present"future"research"paths.""

LITERATURE!REVIEW!

2

The-following-chapter-aims-to-provide-an-understanding-of-the-main-areas-of-focus-of-this-master-thesis.- First,-it-presents-the-main-service-innovation-approaches-and-discusses-what-is-meant-by-service-innovation-and- new- service.- It- also- reviews- the- main- new- service- typologies- First,-it-presents-the-main-service-innovation-approaches-and-discusses-what-is-meant-by-service-innovation-and- classifications.- - Literature- in- NSD- discusses-the-term-as-such;-what-differentiates-NSD-from-NPD,-implications-of-service-characteristics-to-NSD,-and- lastly- it- presents- various- models- in- literature- that- are- based- mainly- on- peer- reviewed- empirical- qualitative-studies-but-also-highly-cited-literature-reviews.--2.1 Structure-of-the-research-field-As"it"was"also"mentioned"in"the"problem"statement,"the"topic"of"new"service"development"has"for"a"long"time" been"largely"neglected,"not"just"in"practice"but"also"in"service"research."It"is"only"recently"that"a"fundamental" change"in"this"situation"has"become"evident,"coinciding"with"the"increasing"practical"relevance"of"the"topic,"as" numerous"publications"in"the"last"few"years"have"confirmed"(Bullinger"et"al.,"2003)."" More"precisely,"so"far"there"is"limited"number"of"relevant"primary"research"studies"of"models"in"service" development"(Stevens"and"Dimitriadis,"2005)."A"few"studies"aim"to"provide"a"structure"to"the"many"activities" and" concepts" associated" with" the" NSD" process" e.g." (Scheuing" and" Johnson," 1989)" while" even" fewer" are" the" empirical"researchers"that"discuss"customer"involvement"in"the"NSD"process"e.g."(Alam"and"Perry,"2002)."Prior" reviews" address" knowledge3intensive" business" services" and" service" innovation" in" subsectors," such" as" wholesale"and"commission"trade,"transportation"and"communication"services,"or"financial"services"(Carlborg"et" al.,"2014)." Many"services"researchers"consider"that"services"have"key"inherent"distinctions"with"relation"to"physical" products,"and"so"NSD"as"a"process"is"very"likely"to"be"different"at"least"in"a"few"aspects,"if"we"desire"great"NSD" effectiveness"(Menor"et"al.,"2002b)."The"degree"to"which"NSD"is"dissimilar"to"NPD"indicates:"1)"in"which"degree" we"could"utilize"prior"NPD"research"and"(2)"what"elements"of"NSD"are"actually"quite"dissimilar"to"NPD"and"thus" should"be"explored"in"future"NSD"research"(Menor"et"al.,"2002b).""

Due" to" the" growing" complication" of" the" NSD" process," much" research" has" been" focused" on" providing" a" structure" to" the" many" activities" and" concepts" associated" with" the" NSD" process/ e.g.(Scheuing" and" Johnson," 1989)." Different" types" of" NSD" models" have" been" suggested" in" literature." While" most" scholars" are" acknowledging"the"impact"of"service"characteristics"to"NSD,"they"have"largely"focused"their"efforts"to"advocate" processes"based"upon"those"applied"in"NPD,"particularly"the"process"model"suggested"by"Booz"et"al."(1982)" (BAH"Model)"(Menor"et"al.,"2002b)."Thus,"there"are"several"examples"of"linear"models"of"NSD."The"linearity"of" the"process"has"recently"come"increasingly"into"question"(Alam,"2002;"Holopainen,"2010)."Some"researchers" have"outlined"complementary"nonlinear"frameworks"e.g."(Johnson"et"al.,"2000,"De"Jong"et"al.,"2003),"hoping"to" accomplish"different"viewpoints"and"insights"into"new"service"development"(Gao"and"Chen,"2010)."All"of"the" models" are" either" detailed" with" broad" stages" and" sub3stages" or" mainly" focus" in" broad" stages" and" highlight" what"are"the"activities"that"take"part"in"these."Newer"NSD"models"also"emphasize"the"role"of"the"client"e.g." (Alam," 2002;" Toivonen" et" al.," 2007)." Ideas" can" be" received" directly" from" the" participant" clients" during" the" development"process,"making"the"process"more"concise"(Holopainen,"2010)."

Although"many"researchers"have"included"various"resource3oriented"elements"in"their"models"e.g."(Reinoso" et"al.,"2009),"these"are"usually"seen"as"supplementary"or"secondary"to"the"sequences"of"steps"and"activities" involved" in" the" NSD" process" (Froehle" and" Roth," 2007)." Moreover," others" authors" have" noted" the" crucial," almost"indispensable"role"of"including"organizational"aspects"into"an"analysis"of"NSD"e.g.(Bitran"and"Pedrosa," 1998):"“the"organizational"aspect"of"innovation"is"particularly"prominent"in"services”"and"yet"management"has" or" may" have" little" knowledge" of" the" particularities" of" the" interaction" between" customers" and" providers" (Dolfsma,"2004)."

2.2

Service-Innovation-and-New-Service-Development-2.2.1 Service/innovation/approaches//

Scholars"employed"at"least"three"approaches"to"describe,"analyze"and"explain"innovation"in"services:"

The"assimilation"approach"is"built"on"the"hypothesis"that"‘most"economic"attributes"of"services"are"largely" similar" to" those" of" manufacturing" sectors’." All" differences" between" the" two" domains" can" be" viewed" with" regards"to"their"degree"as"opposed"to"fundamental"differences."Typical"in"assimilation"approach"is"to"adapt" existing" frameworks" for" products" to" the" specific" features" of" services." Nevertheless," starting" from" the" same" notions"and"approaches"used"for"analyzing"manufacturing"is"commonly"found"to"be"poor"to"shed"light"on"what" is"special"about"services""(Janssen"and"Castaldi)."

Second," the" Demarcation" Approach" is" a" response" to" much" of" the" critique" concerning" the" assimilation" approach." Rather" than" treating" all" forms" of" economic" and" especially" innovative" activity" as" similar," this" approach"focuses"on"identifying"peculiarities"of"services."The"demarcation"approach"views"service"innovation" as" substantially" different" from" manufacturing," and" new" theories," instruments" and" indicators" have" to" be" designed"to"understand"innovation"in"service"contexts."."Due"to"its"focus"on"idiosyncrasies,"the"demarcation" approach" is" accused" of" resulting" in" ‘local" theories’" rather" than" contributing" to" a" better" understanding" of" innovation"in"general"(Janssen"and"Castaldi)"

The"approach,"finally,"is"commonly"regarded"as"the"most"promising"research"avenue."Rather"than"seeing" service" innovation" as" fundamentally" equal" or" different" from" goods3oriented" innovation," it" integrates" the" characteristics"of"both"into"overarching"theories"and"frameworks."Seeing"the"domain"of"goods3"and"service3 based" innovation" as" strongly" intermingled," the" synthesis" approach" urges" not" to" view" service" innovation" in" isolation." Instead," it" argues" that" services" should" be" considered" an" inherent" part" of" change" processes" in" individual" products" as" well" as" in" the" transformation" of" entire" sectors," value" chains" or" clusters" (Janssen" and" Castaldi)." Despite" the" fact" that" the" synthesis" is" widely" advocated," the" risk" that" lures" when" adopting" all3 encompassing" views" is" that" the" acclaimed" peculiarities" of" service" innovation" dynamics" are" not" adequately" taken"into"account"after"all"(Janssen"and"Castaldi)."

The" latter" two" approaches" emphasize" the" relevance" of" non3technological" aspects" of" innovation." The" assimilation"approach"has"limited"utility"with"respect"to"the"distinguishing"characteristics"of"services"and"can" be"problematic"to"follow.""

In/ our/ research/ we/ will/ follow/ mainly/ the/ demarcation/ approach/ but/ we/ also/ support/ the,/ ‘synthesis/ approach’,/ which/ argues/ that/ services/ and/ manufacturers/ do/ not/ follow/ entirely/ different/ approaches/ to/ innovation/but/share/features/and/have/differentiating/characteristics/(Rothkopf,/2009).//

2.2.2 Defining/service/innovation/and/new/service;/new/service/typologies/

In"this"research"project,"the"development"of"new"services"leads"to"the"question"what"is"meant"by"“newness”"in" this"sphere."In"this"section,"we"will"discuss"categories"of"new"services."Most"authors"that"defined"new"service" have"provided"typologies"and"classification"schemes"to"comprehend"the"complexity"of"the"term,"which"entails" various" dimensions." The" following" paragraphs" summarize" classification" schemes" published" during" the" past" decades."""

One" of" the" initiators" of" classification" of" new" services," Lovelock" (1984)," posits" six" categories" of" service" development,"ranging"from"style"changes"right"through"to"major"innovations."The"most"recent"categorization" of" new" services" by" Lovelock" 2001" (Chan," 2003)," is" more" holistic" including" seven" categories" of" new" services." These"categories"are:/a)"Major/service/innovations"(New"services"for"markets"not"previously"defined3"usually" new"service"characteristics"and"new"processes"are"developed),"b)"Major/process/Innovations/(New"processes" to"deliver"existing"services),"c)"Service/line/extensions/(augmentations"/additions"to"current"product"lines),"d)" Process"line"extensions"(New"ways"of"delivering"existing"products),"e)"Supplementary/service/innovations"(New" facilitating" or" enhancing" service" elements" to" an" existing" core" service" or" significantly" improving" a" supplementary"service),"f)"Service/improvements/(Modest"changes"in"the"performance"of"current"products,"i.e." improvements" to" core" features" of" the" service" or" to" supplementary" services.)," g)" Style/ changes/ (Modest" changes"of"visible"form"which"typically"change"the"service"only"in"its"appearance"and"which"influence"customer"