Development of industrial service offerings: a process framework

Abstract

Purpose – The purpose of this paper is to propose a service development process that is adapted to manufacturing companies and to discuss its implications for companies with a traditional focus on product development and product sales. Design/methodology/approach – The paper looks at new service development (NSD) literature and argues for a rationale to study NSD processes in a manufacturing context. Next, a generic NSD framework for manufacturing companies is presented. Examples are given based on an explorative multiple case study (ten companies) with in-depth interviews and focus groups. The analysis reveals organizational requirements and other critical factors related to each stage of the NSD process. Findings – A four-stage service offering development framework is presented. Critical aspects of NSD in a manufacturing context are highlighted. The importance of considering both NSD and new product development (NPD) together is also emphasized. Research limitations/implications – The limitations are based primarily on methodology; the case studies focused only on the service organizations of the manufacturing companies studied. Practical implications – Managers need to be aware of the inter-relationship that exists between NSD and NPD and on the specificities of service development in companies where an industrial logic dominates. A number of managerial implications are proposed and discussed. Originality/value – The paper emphasizes the importance of latter stages in NSD, something that has not previously been extensively studied or addressed. In addition, to explicitly discuss NSD in a manufacturing context is novel.