Why e-Service Development is Different: A Literature Review <s> Rapid Development of New Services <s> The article reviews the book “Blown to Bits: How the New Economics of Information Transforms Strategy,” by Philip Evans and Thomas Wurster. <s> BIB001 </s> Why e-Service Development is Different: A Literature Review <s> Rapid Development of New Services <s> Abstract The management of new service development (NSD) has become an important competitive concern in many service industries. However, NSD remains among the least studied and understood topics in the service management literature. As a result, our current understanding of the critical resources and activities to develop new services is inadequate given NSD’s importance as a service competitiveness driver. Until recently, the generally accepted principle behind NSD was that “new services happen” rather than occurring through formal development processes. Recent efforts to address this debate have been inconclusive. Thus, additional research is needed to validate or discredit the belief that new services happen as a result of intuition, flair, and luck. Relying upon the general distinctions between research exploitation and exploration, this paper describes areas in NSD research that deserve further leveraging and refinement (i.e. exploitation) and identifies areas requiring discovery or new study (i.e. exploration). We discuss the critical substantive and research design issues facing NSD scholars such as defining new services, choice in focusing on the NSD process or performance (or both), and specification of unit of analysis. We also examine what can be exploited from the study of new product development to further understanding of NSD. Finally, we explore one important area for future NSD research exploration: the impact of the Internet on the design and development of services. We offer research opportunities and research challenges in the study of NSD throughout the paper. <s> BIB002 </s> Why e-Service Development is Different: A Literature Review <s> Rapid Development of New Services <s> Abstract There is evidence that the notion of innovation, well established in the manufacturing sector, cannot simply be transposed to the service sector. This article deals critically with existing measurement concepts derived from manufacturing, and introduces a new typology with a view to obtaining a better understanding of innovation in services. Selected results from the German innovation survey are analysed in order to support the conceptual findings and to identify potential improvements. Special attention is directed towards the inclusion of knowledge-intensive business services that are of particular importance for innovation processes. <s> BIB003
A differentiation strategy is difficult to attain, as services can be copied easily and are not applicable to patent protection  BIB003 . Consequently, only continuous innovation can lead to economic success. However, these effects, common to all services, are magnified in the area of electronic services. Advances in electronic services are particularly rapid, and low barriers of entry have been attributed to electronic services (cf.,  BIB002 BIB001 . Reasons for the lower barriers of entry are, for instance, the increased scalability of e-services, global markets due to the global availability of information and accessibility of services, and difficulties in regulating global communication networks BIB002 . This rapid development is further fueled by extremely fast technological progress and the rapid e-Service Journal Volume 8 Issue 1 emergence of new technologies. This fast technological progress not only creates opportunities for new service concepts, but also affects customers' expectations and preferences, which require constant innovations to meet them (e.g., all the electronic services offered on the Apple iPhone store which was only just created through the advances in mobile phone technology). Furthermore, the very nature of electronic services benefits radical innovation through major innovations and start-up businesses BIB002 .