9. Innovation and New Service Development

Question 1

The Service Lifecycle Concept

Answer 1

1. Introduction
2. Growth
3. Maturity
4. Saturation
5. Decline

Question 2

New Service Development

Answer 2

• New services required o replace services whose sales are declining
• Very few genuinely “new” services, distinguish:
• Major innovations: discontinuous innovation = completely new to world e.g. Internet
• New Services: dynamically continuous
• Style changes, service improvements, service line extensions: continuous innovations

Question 3

New Service Development Process

Answer 3

> Getting ideas
> Shortlisting ideas
> Developing and testing
> Business analysis
> Development and testing
> Launch