Why e-Service Development is Different: A Literature Review <s> New Service Development <s> Provides a review and ready reference to recent writings on new service development (NSD), especially for the financial services sector. Discusses the types of new service development, the purposes served by them and the processes. Refers to the key activities of NSD and measures its success. An annotated bibliography supplies a very useful guide to the new service development literature. <s> BIB001 </s> Why e-Service Development is Different: A Literature Review <s> New Service Development <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
NSD involves the development of service offerings such as financial services, health care, telecommunications services, leisure and hospitality services, information services, legal and educational services, and many more BIB001 . Contrary to new product development which is regarded as a base for much research in this area, NSD stresses core differences between products and services: intangibility, heterogeneity, and simultaneity (Fitzsimmons & Fitzsimmons, 2001) . Despite a growing body of knowledge, our understanding of NSD processes, especially for electronic services, is still limited BIB002 . The following sections analyze NSD literature with regards to the five key areas of differences and the analysis framework presented above. The analysis sections are structured along the four main topics areas identified in NSD literature: (1) types of service innovation, (2) antecedents of success, (3) process models, and (4) generic and organizational aspects. Research objectives (RO) with regards to gaps in existing NSD literature are offered in each section.