SERVICES.

NEW SERVICE 

Idea generation is the systematic search for a new service idea. It is the first step in the new service development (NSD) process. NSD is essential for universities to stay competitive. Ideas for service innovation can come from many sources, such as internal brainstorming, members, etc. Many Universities adopt a customer-driven marketing approach, focused on identifying customer demands (what customers are asking for) and understanding consumer needs (what customers require to solve a problem).

Throughout the NSD process, Managers work closely with research and development (R & D) to create original services or modify or improve existing services. Service innovation may target a mass market or a specific niche market.

Launching new services is risky, so new ideas are screened to select or spot potentially successful ones. A University must assess which ideas are viable (will survive in a competitive marketplace), technically feasible (does the University have the skills and resources), and profitable. The University also considers the overall demand.

An attractive idea is developed into several service concepts. Concept testing measures customer response to a new service, what customers think of it, and indicates the level of consumer acceptance. The objective is to successfully introduce the new service onto the market or penetrate the market and minimize research and development costs.

The business strategy describes how to penetrate the market. We must decide which route to market is best for our service. Before moving on to the product development phase, a university needs to assess the financial attractiveness of the new service idea. The University estimates the sales volume, the selling price, and the revenue expectations.

A University needs to organize its workflow efficiently to move quickly through the new service development process and beat the competitors to market. That is, get to market first with a successful service launch. Efficient service development processes increase the chance of doing well or the likelihood of success. The time it takes to develop is called time to market.

During the process, the project team comprises a project leader and the people needed to complete the project, conducts key activities to advance the project, collects information to manage risk, and makes decisions that will reduce future failure risk. Prioritization decisions are made to identify the most important things to do next, and resources are allocated to the best projects. An action plan, a list of what needs to be done next, is defined.

Many service concepts exist only as descriptions, drawings, or fundamental mock-up models. Service optimization studies are carried out to improve the service as it is being developed.

The next step is to collect information on how the proposed service will perform in the marketplace. The University tests the service and its management plan on a small test market before a full launch. It allows the University to forecast or predict sales, uncover problems with the service, fine-tune, or adjust it. The amount and type of testing depend on the costs and risks of introducing the service.

Commercialization, or market introduction, is the final stage in the new service development process. The distribution network and marketing communications action plan must be ready by the launch or commercialization date. The nonprofit organization may launch the service simultaneously in all markets or prepare a step-by-step market rollout in different cities and countries.

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BRAINSTORMING

During service naming, managers use brainstorming techniques to find new names for services or during service product development to find new services and generate ideas.

There are three roles for participants in a brainstorming team: leader, scribe, and team members. Before the session, the leader needs to define a problem statement. The problem statement must focus on the session's aim but must be open enough to allow innovative thinking.

The leader must also set the ground rules for brainstorming.

• All ideas are welcome. During brainstorming sessions, no judgments or criticisms should be made of ideas. Do not criticize ideas. Do not evaluate ideas. They can be modified later.

• Change involves risk-taking, so being open to original ideas is essential. The quantity of ideas is more important than quality.

• There is no ownership of ideas; the ideas belong to the group. Participants should hitchhike on or build on other people's creative ideas.

• The scribe must write down every idea so all team members can see it.

Brainstorming techniques

We may need to get the creative juices flowing (get people thinking more creatively), encourage people to think outside the box and look at a problem from a new or different angle.

One common technique is to use a random word as a starting point for possible solutions. There are many random word generators on the internet.

One final technique is to ask novel questions (new or different questions) to stimulate creative answers.

SERVICES LIFE CYCLE

The Boston Consulting Group Matrix

The Boston Consulting Group Matrix was devised in the 1970s as a planning tool for marketers to help them analyze their product lines and decide where to allocate money. Market growth rate, the speed at which the market is expanding, is plotted against relative market share, the percentage of consumers in the market that buy our service. Services have either high or low market growth rates or close market shares.

Inside the Boston Box.

In the matrix, services are divided into four different types. They relate to four stages in the service life cycle (SLC).

The Product Life Cycle

A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the managerial situation.

• Introduction stage: product (branding and quality level is established), pricing (low penetration pricing to build market share rapidly, or high skim pricing to recover development costs), distribution (is selective until consumers show acceptance of the product), promotion (is aimed at innovators and early adopters).

• Growth stage: product (quality is maintained and additional features and support services may be added), pricing (is maintained as the organization enjoys increasing demand with little competition), distribution (channels are added as demand increases and customers accept the product).

• Maturity stage: product (features may be enhanced to differentiate the product from that of competitors), pricing (may be lower because of the new competition), distribution (becomes more intensive and incentives may be offered to encourage preference over competing products), promotion (emphasizes product differentiation).

• Decline stage: the organization has several options: maintain the product, possibly rejuvenate it by adding new features and finding new uses; Harvest the product, reduce costs, and continue to offer it, possibly to a loyal niche segment; Discontinue the product.

Selling scientific and technological services

A product is tangible, meaning it can be touched. A service is intangible and does not have a physical presence. Packaging our service to make it look like a product is a frequently used technique.