Innovation in services: the contribution of design theory

Research in economics clearly points out that our economy is increasingly dependent on services but, paradoxically, the literature on innovation remains oriented toward product. Therefore many firms lacks well-tested methods to develop new services and rely on informal and largely haphazard processes. The paper makes use the recent advances in design theory to propose an integrated model of New Service Development. It illustrates how the identification of six design parameters of a new service (target clientele, support product, contract, front et back-office processes, economic model) helps clarifying the working of NSD processes. Further the paper assigns four different uses of the model as a NSD management tool.