USMAN ASD KASHIF

8/6/2019 USMAN ASD KASHIF

1/22


2/22

NSD success factors innovative versus incremental in

Pakistan Fast Food Industries


3/22

INNOVATION

Innovations are the outcome of a

professionally-managed organizational

development process in which R&D and

entrepreneurship often are combined with

quality, effective leadership, sound employee

management and critical market

considerations (Ottenbacher et al., 2006; Trott, 2005).


4/22

INNOVATION (contd.)

Innovation covers all activities which yield newor improved products or ways of doing things.

Innovation is the process and outcome of creating

something new, which is also of value.

Innovation involves the whole process fromopportunity identification, ideation or invention to

development, prototyping, production marketing andsales, while entrepreneurship only needs to involvecommercialization (Schumpeter).


5/22

INNOVATION (contd.)

Schumpeter argued that innovation comes

about through new combinations made by an

entrepreneur, resulting in

a new product,

a new process,

opening of new market,

new way of organizing the business

new sources of supply


6/22

Dimensions of innovation

There are several types of innovation

Process, product/service, strategy,

which can vary in degree of newness: Incremental to radical,

and impact:

continuous to discontinuous


7/22


8/22

Types of Innovation

Radical innovation is driven by technology the systematic application of scientific

knowledge to practical purposes. Incremental innovation is associated with

continuous improvement.


9/22

Elements of Innovation


10/22

New Product Development

New product development (NPD) is the term

used to describe the complete process of

bringing a new product or service to market


11/22

Intangibility:

this characteristic

best differentiatesproducts fromservices

Ownership:

a pure service

also does nottransfer theownership of atangible item tothe customer

Heterogeneity:

services tend to

beheterogeneous;i.e. they arecustomized tothe specificneeds of the

recipient

Perishability:

Services are

usually createdas they areused, whileproducts can bemade ahead oftime and held in

inventory ordistributionsupply chain

11

Differences between Products and Services


12/22

Products and services can be viewed as layers because many

products have services embedded in them and vice versa

A single layer can be a physical product that is exchanged forpayment. The relationship between buyer and seller starts and

ends with the sale

Multiple layers would be services that consist of dialogues

between service providers and clients, e.g., consultation or

travel information

12

Products Vs Services


13/22

Tangibility Spectrum

Tangible

Dominant

Intangible

Dominant

Salt

Soft Drinks

DetergentsAutomobiles

Cosmetics

AdvertisingAgencies

AirlinesInvestment

ManagementConsulting

Teaching

Fast-foodOutlets

Fast-foodOutlets


14/22

New Service Development Cycle

People

Technology Systems

Product

Full Launch Development

Design Analysis

Tools

Enablers

Formulation

of new services

objective / strategy

Idea generation

and screening

Concept

development and

testing

Business analysis Project authorization

Full-scale launch

Post-launch review

Service design

and testing

Process and system

design and testing

Marketing program

design and testing Personnel training

Service testing and

pilot run

Test marketing


15/22

New Business Models Emerge

Then

One IntegratedCompany

Now

Many Distributed Companies

ProductDevelopment

Cycle

ProductDevelopment

ToolCompanies

TestingServices

CROs CRMs


16/22

Levels of Service Innovation

New service development projects range from a totally

new or discontinuous innovation to a service involving a

minor adaptation or improvement that is of an

incremental nature. (Griffin, 1997; Booz Allen Hamilton, 1982)

with tangible goods, the innovativeness of a new servicemay be defined by the degree of newness it has relative

to the outside world and the firm itself(Olson et al., 1995)

NSD projects can be dichotomized into incremental and

discontinuous innovations (Olsen and Sallis, 2006; Song andMontoya-Weiss, 1998)


17/22

Levels of Service Innovation (contd.)

Booz Allen Hamiltons categories were developedfor manufactured goods, these definitions havebeen adapted for service innovations (Johne andStorey, 1998)

New to the world services

New Service lines

Addition to an existing service lines

Improvements & revision of an existing lines Repositioning

Cost Reduction


18/22

Major Innovation: new service driven by informationand computer based technology

Start-up Business: new service for existing market

New Services for the Market Presently Served: newservices to customers of an organization

Incremental Innovations

Service Line Extensions: augmentation of existingservice line (e.g. new menu items)

Service Improvements: changes in features of currentlyoffered service

Style Changes: modest visible changes in appearances


19/22


20/22

Methdology

Data Gathering

Sample

Tool

Analysis Tool


21/22

Learning Objectives

Discuss the new service development process.

Prepare a blueprint for a service operation.

Describe a service process using the dimensions

of divergence and complexity.

Use the taxonomy of service processes to classify

a service operation. Compare and contrast the generic approaches to

service system design.


22/22

Structural Alternatives for a Restaurant

No Reservations

Self-seating. Menu on Blackboard

Eliminate

Customer Fills Out Form

Pre-prepared: No Choice

Limit to Four Choices

Sundae Bar: Self-service

Coffee, Tea, Milk only

Serve Salad & Entree Together:Bill and Beverage Together

Cash only: Pay when Leaving

TAKE RESERVATION

SEAT GUESTS, GIVE MENUS

SERVEWATER AND BREAD

TAKEORDERS

PREPAREORDERS

Salad (4 choices)

Entree (15 choices)

Dessert (6 choices)

Beverage (6 choices)

SERVEORDERS

COLLECT PAYMENT

Specific Table Selection

Recite Menu: Describe Entrees & Specials

Assortment of Hot Breads and Hors Doeuvres

At table. Taken Personally by Maltre d

Individually Prepared at table

Expand to 20 Choices: Add Flaming Dishes;

Bone Fish at Table; Prepare Sauces at Table

Expand to 12 Choices

Add Exotic Coffees; Sherbet between

Courses; Hand Grind Pepper

Choice of Payment. Including House Accounts:

Serve Mints

LOWER COMPLEXITY/DIVERGENCE CURRENT PROCESS HIGHER COMPLEXITY/DIVERGENCE

Documents

USMAN ASD KASHIF