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In what way does the process of new service development process tend to differ f

ID: 394123 • Letter: I

Question


In what way does the process of new service development process tend to differ from the process new product development?

1 New service development does not require concept or product use testing (PUT) as services are process oriented performances by personnel or machines rather than tangible goods

2 New service development does not require venture focussed teams to deliver radical/transformation innovations because such teams only apply to physical product innovation.

3 New service development has different principals of universal design due their their inherent intangibility, inseparability in production/consumption, heterogeneity in service quality and perishability.

New service development tends to be more flexible than new product development as changes to the process of service delivery do not require as heavy investments in areas like manufacturing, tooling, distribution and logistics.

1 New service development does not require concept or product use testing (PUT) as services are process oriented performances by personnel or machines rather than tangible goods

2 New service development does not require venture focussed teams to deliver radical/transformation innovations because such teams only apply to physical product innovation.

3 New service development has different principals of universal design due their their inherent intangibility, inseparability in production/consumption, heterogeneity in service quality and perishability.

4

New service development tends to be more flexible than new product development as changes to the process of service delivery do not require as heavy investments in areas like manufacturing, tooling, distribution and logistics.

Explanation / Answer

Answer 4. New service development tends to be more flexible than new product development as changes to the process of service delivery do not require as heavy investments in areas like manufacturing, tooling, distribution and logistics.

Explanation: New product development requires capital costs like equipment; land etc., whereas new service can be provided with just increase in no of employees, or increasing the customer experience by tweaking in the layout only.

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