Development of industrial service offerings: a process framework

Abstract

PurposeThe purpose of this paper is to propose a service development process that is adapted to manufacturing companies and to discuss its implications for companies with a traditional focus on product development and product sales.Design/methodology/approachThe paper looks at new service development (NSD) literature and argues for a rationale to study NSD processes in a manufacturing context. Next, a generic NSD framework for manufacturing companies is presented. Examples are given based on an explorative multiple case study (ten companies) with in‐depth interviews and focus groups. The analysis reveals organizational requirements and other critical factors related to each stage of the NSD process.FindingsA four‐stage service offering development framework is presented. Critical aspects of NSD in a manufacturing context are highlighted. The importance of considering both NSD and new product development (NPD) together is also emphasized.Research limitations/implicationsThe limitations are based primarily on methodology; the case studies focused only on the service organizations of the manufacturing companies studied.Practical implicationsManagers need to be aware of the inter‐relationship that exists between NSD and NPD and on the specificities of service development in companies where an industrial logic dominates. A number of managerial implications are proposed and discussed.Originality/valueThe paper emphasizes the importance of latter stages in NSD, something that has not previously been extensively studied or addressed. In addition, to explicitly discuss NSD in a manufacturing context is novel.