Why e-Service Development is Different: A Literature Review <s> RO6: Understanding how the reversed cost structure influences the NSD process and how costs during the development can be kept low <s> Abstract A typology of a class of service systems is proposed. The typology links strategic operational objectives to the decision to de-couple work between the front and back offices of a service system. Four specific ideal types of a strategy/de-coupling mix are described; each of which has distinct operational, marketing and human resource ramifications. A type that has had significant representation in traditional literature is the “Cost Leader” type, where back-office activities are de-coupled from the front office for the purpose of lowering costs. Another traditional type representative of the craftsman legacy is the “Personal Service” type, which retains back-office tasks in the front office to pursue non-cost-oriented strategic goals. Theoretical and empirical evidence is also given for two non-traditional types: the “Kiosk” type, where all tasks remain in the front office to achieve lower costs, and the “Focused Professional” type, which de-couples front- and back-office activities to enable front-office workers to provide higher service, rather than to reduce costs. Empirically, retail bank lending systems are analyzed to support the typology. <s> BIB001 </s> Why e-Service Development is Different: A Literature Review <s> RO6: Understanding how the reversed cost structure influences the NSD process and how costs during the development can be kept low <s> Abstract In companies where new product development plays an important strategic role, managers necessarily contend with a portfolio of projects that range from high technology, new-to-the-world, innovations to relatively simple improvements, adaptations, line extensions, or imitations of competitive offerings. Recent studies indicate that achieving successful outcomes for projects that differ radically in terms of innovativeness requires that firms adjust their NPD practices in line with the type of new product project they are developing. Based on a large-scale survey of managers knowledgeable about new product development in their firm, this study focuses on new business-to-business service projects in an attempt to gain insights about the influence of product innovativeness on the factors that are linked to new service success and failure. The research results indicate that there are a small number of “global” success factors which appear to govern the outcome of new service ventures, regardless of their degree of newness. These include: ensuring an excellent customer/need fit, involving expert front line personnel in creating the new service and in helping customers appreciate its distinctiveness and benefits, and implementing a formal and planned launch program for the new service offering. Several other factors, however, were found to play a more distinctive role in the outcome of new service ventures, depending on how really new or innovative the new service was. For low innovativeness new business services, the results suggest that managers can enhance performance by: leveraging the firm’s unique competencies, experiences and reputation through the introduction of new services that have a strong corporate fit; installing a formal “stage-gate” new service development system, particularly at the front-end and during the design stage of the development process; and ensuring that efforts to differentiate services from competitive or past offerings do not lead to high cost or unnecessarily complex service offerings. For new-to-the-world business services, the primary distinguishing feature impacting performance is the corporate culture of the firm: one that encourages entrepreneurship and creativity, and that actively involves senior managers in the role of visionary and mentor for new service development. In addition, good market potential and marketing tactics that offset the intangibility of “really new” service concepts appear to have a positive performance effect. <s> BIB002 </s> Why e-Service Development is Different: A Literature Review <s> RO6: Understanding how the reversed cost structure influences the NSD process and how costs during the development can be kept low <s> Service Science, Management, and Engineering (SSME) is a research area with significant relevance to research and practice. Networked systems of web services are a field of service science that enjoys growing interest from researchers. The complex and dynamic environment of these service ecosystems poses new requirements on quality management that are insufficiently addressed by current approaches that focus mainly on the technical aspects of quality. This focus is a severe limitation for the development of service networks because it neglects perceived service quality from the viewpoint of service consumers. In this paper we propose a reference model for quality management in service ecosystems. This reference model is linked in particular to innovation and new service development. Towards the end we propose premises for the implementation and outline a future research agenda. <s> BIB003 </s> Why e-Service Development is Different: A Literature Review <s> RO6: Understanding how the reversed cost structure influences the NSD process and how costs during the development can be kept low <s> Motivated by the increasing attention given to the operational importance of developing new services, this paper offers a theoretical framework that integrates both process- and resourceoriented perspectives of new service development (NSD) by defining and organizing 45 practice constructs for NSD-related practices and activities that occur in contemporary service firms. We employ a rigorous procedure whereby both quantitative and qualitative data were gathered through multiple rounds of interviews and card-sorting exercises with senior service managers. This iterative refinement process helps ensure that the construct domains and definitions are consistent and that they are applicable across multiple service sectors. A primary contribution of this research is to provide precise operational definitions of theoretically important NSD practice constructs. Importantly, this study expands on the NSD literature by including both resource- and process-centric perspectives within a single framework. A second contribution is to illustrate a general methodology for developing clear, concise, and consistent construct definitions that may be generally useful for production and operations management scholars interested in new construct development for emerging areas. Empirical results suggest that the resource-process framework can help guide and organize future research on, and provide insight into, a more comprehensive view of new service development. <s> BIB004
A related issue is the common distinction in service development between a "frontoffice" and "back-office" BIB001 . Yet, sole focus on "back-office" operational efficiency is not enough and has been neglected with many e-services. As argued by BIB003 , perceived quality measures have to be taken into account to address satisfaction issues commonly addressed in "front-office" design. Moreover, note that different NSD processes are necessary for different types of innovation. In particular, they identify incremental service innovations, radical service innovations, and technology-driven services as key differences that should be used to choose the appropriate NSD process; the authors propose this as an avenue for future research. With regards to the perpetual beta aspect of electronic services, this result might be useful in guiding the selection of a specific process that is designed especially for incremental innovations BIB002 . BIB004 propose a framework for NSD that integrates both process-and resource-oriented approaches. The resource-oriented practices focus on cultivating and developing the intellectual, organizational, and physical resources that support NSD capabilities. The process-oriented practices focus on planning, defining, and executing the actual stages of the service development (see Figure 2) . Their belief e-Service Journal Volume 8 Issue 1 and motivation for this integrated view is that both resource and process capabilities are required for successful service development.  acknowledges the fact that services have to be continuously improved and that a continuous mapping of service artifacts to market needs and demands is necessary. However, there is no consideration for the vast transparent feedback available in e-services and the very fast cycle times. Concepts such as systematic and large scale customer integration (e.g., through open innovation), as well as and customer co-design, offer opportunities for the design and customization of e-services.