New Service Development (NSD) refers to the process of creating and launching a new service innovation or product for commercial purposes. In today's fast-paced business environment, NSD has become crucial in maintaining a competitive edge.
NSD can help companies expand their customer base, increase market share, and achieve sustainable growth over time. It also enables them to diversify their revenue streams while reducing the dependence on existing products or services. Therefore, NSD is critical in helping organizations meet changing customer needs and preferences.
Since new services add value by fulfilling unmet customer needs or enhancing current offerings, they foster competitive advantage through various ways:
The NSD process involves six key activities that include idea generation, screening an idea through focus groups with target customers followed by Concept development.
Concept testing helps discover flaws followed by Business analysis which includes assessing financial viability. After developing your projection-based strategy test it out just a few consumers during test marketing before scaling upon successful validation.
One potential source comes from analyzing trends within group data among people you're interested serving; looking at what inspires concept improvements elsewhere (e.g., 3rd party apps), exploring external databases like published research papers as well as stepping back and visualizing experiences you don't see around with fundamental questions about why there isn't something available yet?
Technology affects all phases of the product life cycle including implementation so naturally it impacts every aspect of successful New Service Design initiatives.
For instance conveniences such as shopping mobile while walking alongside virtual assistant that answers your questions using NLP algorithm’s means you can't build surface-level service design. You must be able to iterate over the long run based on real functional data, which means doing deep dive into how technology could enable your service initiatives.
Success in developing new services and experiences relies upon bringing together experts from multiple fields like visual designers who represent user perspectives alongside marketing strategists who understand buyer behavior. By working collaboratively with these individuals using multidisciplinary framework orgarnizing meta-project's towards product development will help ensure that everyone involved stays aligned throughout each stage of the process.
