Why e-Service Development is Different: A Literature Review <s> Types of Service Innovation <s> Abstract The concept of the reverse product cycle, as a theoretical model of innovation in services, is developed further in this paper, using the vanguard sector of financial and business services as a case study example of how innovation operates as an interactive process. The parallels between the emerging Service Revolution and the nineteenth century Industrial Revolution are explored in order to identify the key characteristics of the vanguard sectors in each technological revolution. The particular nature of the new techno-economic paradigm based on information technology is then identified, leading to a discussion of the unique conjunction of factors favouring financial and business services as the vanguard sector of the Service Revolution. The central part of the paper then offers an elaboration of the reverse product cycle model, stressing the interactive nature of the innovation process as it reflects the prevailing technological opportunities, market conditions and industry structures within the adopting sector. The example of retail banking is used to illustrate how the innovation cycle proceeds, from increases in efficiency through improvements in service quality to the generation of new network service products. There is then a discussion of the question of the optimal industry structure for innovation, suggestion that in the reverse product cycle large corporations are likely to dominate the early stage of incremental process innovations, whereas later in the cycle there is an important role for small entrepreneurial firms to advance more radical process and product innovations. The concluding section summarises six major characteristics of the Service Revolution, and suggests how it may proceed from its first to its second phase as the focus of innovation shifts from the vanguard sector of financial and business services to a much broader range of “higher level” knowledge-based services, many of which are currently delivered by the public sector. <s> BIB001 </s> Why e-Service Development is Different: A Literature Review <s> Types of Service Innovation <s> This article describes a number of innovation forms that are of special relevance to firms in the service industry. Not only technological innovations but also organizational innovations have been distinguished. In the service industry organizational innovations seem to play a significant role. The literature on innovations makes little mention of new organizational arrangements in services. Based on the service management literature a scheme with three forms of organizational innovation and one form of technological innovation is developed. This scheme is illustrated and elaborated in ten case studies of firms in various service industries. The case studies shed some light on innovations in multi-unit forms, combinations of services and co-operation with customers. On a basis of the service management literature and the case studies some of the main processes supporting the (organizational) innovations are analysed. <s> BIB002 </s> Why e-Service Development is Different: A Literature Review <s> Types of Service Innovation <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> BIB003 </s> Why e-Service Development is Different: A Literature Review <s> Types of Service Innovation <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> BIB004 </s> Why e-Service Development is Different: A Literature Review <s> Types of Service Innovation <s> Abstract Purpose This paper explores the constituents of and challenges related to the innovation of technology-based services in the long-term homecare sector. Methods This research used purposeful extreme case sampling, a mixed methods approach to research that included focus groups and interviews, to learn from the experiences of an innovative telehomecare project. The paper uses a framework that integrates service management; information systems innovation and medical informatics theory. Results The findings indicate that the claimed and the rather abstract benefits of the technology espoused by information technology vendors were difficult to transform into a service concept. The organization studied is still struggling with conflicts between technological possibilities on the one hand, and the prevailing service delivery systems and user preferences on the other. Decisions about the extent to which the service needs to be reengineered, what non-technology resources are required, what should be the role of the consumer in the new care process and identifying who is actually the primary beneficiary and user of the new service remain. Conclusions A comprehensive development model and ‘mindfulness’ is necessary for radical service innovation in the long-term homecare sector. Creating new services that exploit the capability of radical technical innovations requires organizational development and the use of many non-technology innovations and resources. To understand what combinations of technological and non-technological resources can provide sustainable benefit, all key internal and external stakeholders must be involved from the beginning of the project. <s> BIB005
The first set of articles tries to bring structure to the types of innovations found in services by proposing typologies of service innovation. Edvardsson and Olson (1996) suggest that service innovation includes the development of (1) a service concept (which customer needs are satisfied), (2) a service system (the resources necessary to deliver a service), and (3) a service process. These three areas make service innovation a complex and multidimensional undertaking BIB005 . suggest six categories to structure service innovation (Table 5 ). Other types of service innovation noted are, for example, the new combinations of existing services or the combination of customer coproduction with new service characteristics or competencies BIB002  . It has been noted that many e-services are new versions of existing services (e.g., online procurement). Thus, external newness of e-services is sometimes low BIB003 . BIB004 identify four patterns of key factors influencing service innovation: knowledge intensity, network basis, scale intensity, and supplier dominance. Especially the networkbased innovations seem to match most electronic services due to their reliance on technological systems for information and communication processing. BIB003 , moreover, argue that the nature of electronic services especially benefit radical innovations (major innovations and start-up businesses). While there is agreement in the literature that different types of new services exist, there is little agreement as to what these types are. In particular, new types of e-services have not been studied systematically. Hence, a first research objective (RO) for extending NSD research is as follows. BIB001 argues that IT-based service innovation follows a pattern that is different from that found in manufacturing. He claims that in the early life cycle phase of a service "technology push" is the main driving force, whereas in the following phases incremental process innovation through "demand pull" is the driving force. In the latter phase, pressure by users increasingly forces service providers to distinguish themselves, leading to differentiated products and product innovation. To account for this fact and the specifics of service industries, Barras proposes a reverse product life cycle (RPC) model for services. The reverse product life cycle model suggests that innovation takes place in three phases: improved efficiency, improved quality, and new services phase BIB001 . This model could help in explaining e-service innovations, as these are obviously largely IT-based and often follow new technical innovations. Other articles also discuss the specific influence of IT innovations on service innovation. The process innovation aspects achieved through the use of IT in back-end service provisioning and automation potentials are especially notable  . However, these types of innovation are not specific to e-services, as IT is a technology to be applied to the generic information-processing activities of services  . Miles concludes that a study of IT influence does not reveal much about the dynamics and processes of innovation.