A design thinking perspective on capability development: the case of New Product Development for a service business model

Purpose: To examine the interaction between New Product Development (NPD) capabilities and Business Model Innovation (BMI) by studying the adaptation of capabilities in a manufacturing firm as it adopts a service business model. Approach: An in-depth case study is used to identify design capabilities and document how these have been developed as the firm has adapted its NPD processes to the needs of its service business model. Findings: Design capabilities are proposed as a facilitator of servitization, allowing a manufacturing firm to develop service offerings that build on resources such as knowledge and experience. Conversely, the scope of servitization is restricted by the extent to which these design capabilities can be updated to suit the demands of a new business model. Practical implications: Servitization is presented as an imperative for manufacturing firms, yet research has not addressed the implications for NPD nor investigated how BMI affects NPD capabilities. This study shows the need to identify whether current NPD processes help or hinder BMI and proposes how managers can adapt NPD processes to a new business model. Originality: A three-stage process is identified for adapting NPD processes – as BMI changes the nature of products and services required, existing processes are supplemented by design activities requiring expert knowledge, these are subsequently refined into design methods that can be incorporated into the NPD process, and eventually design tools allow automation and efficiency

Revisiting Service Quality through the Lens of Experience-Centric Services

The purpose of this research is to revisit prevailing notions of service quality by developing and testing a model of service quality for experience-centric services. By problematizing the service quality literature, a model is developed to capture impacts of outcome-achievement, instrumental performance and expressive performance on customer loyalty. A multi-group structural equation model is tested to establish the moderating effect of perceived service character—utilitarian or hedonic. Outcome-achievement mediates the direct relationships between instrumental and expressive performance, respectively, and loyalty; the strength of these relationships is moderated by perceived service character. Emotional design to improve the experience is effective provided the expected outcome is achieved. However, for services that customers perceive as experience-centric, the outcome may be somewhat ambiguously defined and expressive performance is valued more highly than instrumental performance. Understanding customers’ perception of a service—whether customers seek value related to outcomes or emotions—is crucial when selecting appropriate measures of service quality and performance. Creating a good experience is generally beneficial, but it must be designed according to the character of the service in question. The research presents empirical evidence on how service experience contributes to customer loyalty by testing a model of service quality that is suited to experience-centric services. Furthermore, it identifies the importance of understanding service character when designing and managing services

Can 3D Printing address operations challenges in Disaster Management?

Disaster management entails activities for responding to and recovering from disruption to normal conditions. Disasters restrict the ability of operations managers, but technologies such as 3D printing have been proposed as a means of overcoming some of the restrictions. This research uses a state-of-the-art review of 3D printing technologies to determine the current and future potential to meet disaster management challenges. Specifically, one of the main categories of items listed in the Sphere Project handbook is considered. The analysis evaluates short, medium and long term feasibility and provides a research agenda for 3D printing and disaster management

Harnessing the power of experimentation through design thinking and agile methods

Design thinking and agile thinking are approaches that have great value in product innovation management. While they may be widely discussed in practice, it is unclear to what extent they are understood and how they are applied. To answer these questions, qualitative research was conducted with design engineers involved in product innovation. Interviews focused on the type of iterative development used and the extent to which experimentation, with a variety of media, contributes to design and innovation. The research examines experimentation through creation of low-fidelity models. These include mechanisms modelled using construction toys, or scale models created from materials found in a workshop, to test and explore ideas. We use the concept of boundary objects to explain the way that these low-fidelity models facilitate communication between individuals who possess differing sets of knowledge. A variety of experimentation techniques are identified, from hand drawn sketches to simple models, which contrast with computer drawings and simulations. A distinction is revealed between those who trust their own intuition and creativity compared with those who rely on objective measures and trust computer models. A question over the extent to which design involves analysis and synthesis is demonstrated in this distinction. The contributions of this research are as follows. Firstly, it reveals the ways in which technologies – old and new – enrich the armoury of the designer, by facilitating the exploration and communication of ideas. Secondly, it provides insights into the role of experimentation in innovation by examining the use of low-fidelity prototypes. And finally, it draws comparisons between design and agile methods, finding opportunities for cross-fertilisation and suggesting how managers 2 may wish to support designers in innovation projects through agile methods and by encouraging experimentation

The role of design in product-service organisations

Amid claims that we live in a service economy, the distinction between manufacturing and services is blurred. Many manufacturers have made a product-service transition, whereby services are integrated with products, to meet demand for access to the benefits, but not the risks of ownership of products. Many aspects of this transition and the product-service offerings which result require investigation, principally the relationship with design. Design itself is a concept open to many interpretations and studies of it have been hampered by the lack of an accepted theoretical framework. This research makes three main contributions, firstly it develops a theoretical framework for studying design and comparing organisations based on a proposed classification of design activities. Next it investigates the implications of a product-service transition, to add a three stage model of product-service development to the theoretical framework. Finally it uses the theoretical framework to explore the role of design in a large, product-service organisation and compares the findings to literature to position the theoretical contributions. The research follows an abductive strategy, moving back and forth between the theoretical and empirical domains. The overall research topic is reduced to three sub-topics, allowing three sets of research questions to be investigated. Studies of design, product-service implications and the role of design in product-service organisations are presented, utilising literature reviews and qualitative case studies. The research argues that design capabilities enable a product-service transition but a reconfiguration of design capabilities may be required as products are designed for multiple customers. Meanwhile, the customer-facing units described in the literature were found to act as a buffer, shielding designers from customer pressures and integrating customer requirements. For managers, this research highlights the considerations and implications of a product-service transition, while it has contributed articles to the academic literature and raises further research topics

3D printing, makerspaces and innovation:a bricolage perspective

The aim of this research is to understand how 3D printing is used by independent innovators, in the context of makerspaces, to generate innovations. 3D printing refers to digital fabrication technologies that are increasingly affordable and accessible. Makerspaces allow communities of individuals to share access to such technologies, learn to use them and to develop their social capital. The objectives of the research are 1) to understand the motivations of innovators who use 3D printing and makerspaces; and 2) to explain the role that 3D printing and makerspaces can play in commercial innovation. The study presents case research involving individual innovators who were identified through ethnographic fieldwork in a number of makerspaces. The research draws on theory in the area of bricolage – an approach to innovation that emphasises experimentation, improvisation and networking to overcome resource-constraints. We find evidence that makerspace users adopt such an approach, for example accessing technologies and knowledge. And we demonstrate how 3D printing is used to produce non-standard parts that are combined with available components, when required resources are out of reach. This research contributes to knowledge and practice, by showing that 3D printing is used to fill gaps, by creating non-standard or otherwise unobtainable parts, in combination with other available resources. Makerspaces help innovators to overcome their resource constraints, but also play a crucial role in sharing knowledge, to help individuals innovate. The implications for practice centre on the innovative potential for product innovation to follow the approaches that are now standard in software development – the research therefore illuminates the changing role of innovation in the digital age

The role of design in product-service organisations

Amid claims that we live in a service economy, the distinction between manufacturing and services is blurred. Many manufacturers have made a product-service transition, whereby services are integrated with products, to meet demand for access to the benefits, but not the risks of ownership of products. Many aspects of this transition and the product-service offerings which result require investigation, principally the relationship with design. Design itself is a concept open to many interpretations and studies of it have been hampered by the lack of an accepted theoretical framework. This research makes three main contributions, firstly it develops a theoretical framework for studying design and comparing organisations based on a proposed classification of design activities. Next it investigates the implications of a product-service transition, to add a three stage model of product-service development to the theoretical framework. Finally it uses the theoretical framework to explore the role of design in a large, product-service organisation and compares the findings to literature to position the theoretical contributions. The research follows an abductive strategy, moving back and forth between the theoretical and empirical domains. The overall research topic is reduced to three sub-topics, allowing three sets of research questions to be investigated. Studies of design, product-service implications and the role of design in product-service organisations are presented, utilising literature reviews and qualitative case studies. The research argues that design capabilities enable a product-service transition but a reconfiguration of design capabilities may be required as products are designed for multiple customers. Meanwhile, the customer-facing units described in the literature were found to act as a buffer, shielding designers from customer pressures and integrating customer requirements. For managers, this research highlights the considerations and implications of a product-service transition, while it has contributed articles to the academic literature and raises further research topics

Setting the stage for service experience:design strategies for functional services

Purpose: The purpose of this paper is to identify service design strategies to improve outcome-oriented services by enhancing consumers’ emotional experience, while overcoming customer variability. Design/methodology/approach: An abductive, multiple-case study involves 12 service firms from diverse online and offline service sectors. Findings: Overall, six service design strategies represent two overarching themes: customer empowerment can involve design for typical customers, visibility, and community building, while customer accommodation can involve design for personas, invisibility, and relationship building. Using these strategies helps set the stage for a service to offer an emotional experience. Research limitations/implications: The study offers a first step toward combining investigations of service experience and user experience. Further research can strengthen these links. Practical implications: The six design strategies described using examples from case research offer managerial recommendations. In particular, these strategies can help service managers address the customer-induced variability inherent in services. Originality/value: Extant studies of experience staging have focused on particular sectors such as hospitality and leisure; this study contributes by investigating outcome-focused services and identifying strategies to create unique experiences that offset variability. It also represents a rare effort to combine research from service management and interaction design, shedding light on the link between service experience and user experience

Overcoming the monetization challenge in freemium online games

Purpose: Online games based on a freemium business model face the monetization challenge. The purpose of this paper is to examine how players’ achievement orientation, social orientation and sense of community contribute to willingness to pay (WtP). Design/methodology/approach: A multi-method study of an online game community is used. Interviews and participant observation are used to develop an understanding of social and achievement orientations followed by the development of hypotheses that are tested using survey data. Findings: The findings indicate that a sense of community is positively related to WtP, whereas satisfaction or dissatisfaction with the service provider is not. The authors examine the moderating role of players’ achievement orientation and social orientation and find that while a stronger connection to the community may encourage achievement-oriented players to pay, the opposite is indicated for socially oriented players. Practical implications: Decision makers need to understand that not all players are potential payers; while socially oriented users can help to maintain and grow the community, achievement-oriented players are more likely to pay for the value they extract from the community. Originality/value: While communities are held together by people with common interests, which intuitively suggests that WtP increases with the strength of connection to the community, the authors find this only applies in the case of players with an achievement orientation. For those with a social orientation, WtP may actually decrease as their connection to the community increases. These perhaps counter-intuitive findings constitute a novel contribution of value for both theory and practice

Organizing for servitization:examining front- and back-end design

Purpose: Research suggests that to structure for servitization, organizations should separate their front- and back-end units by reference to high versus low contact activities. However, these prescriptions are overly simplistic and largely based on anecdotal evidence that fails to account for context. This research addresses the need to explore the design decisions taken by organizations in support of servitization. Design/methodology/approach: A large-scale exploratory case study was conducted, consisting of embedded cases in three divisions of a UK-based, global manufacturing firm. Findings: Each division provided different combinations of offerings (i.e. product-, use- and result-oriented). The findings suggest that front-end / back-end configurations differ according to the offering and can exist concurrently within the same organization, challenging the assumption that different configurations within an organization are not possible. The findings show that underlying contextual factors, such as the complexity and temporality of the offering, as well as the power of the customer, have implications for the structuring of servitizing organizations. Research limitations: This is a context-specific, qualitative case study conducted within a large original equipment manufacturer, yet the findings are analytically generalized. Originality/value: In identifying the relevance of different design decisions in terms of customer contact, decoupling of activities and grouping of employees, the findings challenge the extant view that organizations simply split activities between the front- and back-end functions. The research identifies an additional design configuration - Integrated Project Teams – involving a dominant customer dictating organizational interfaces. This research exposes the need for further investigation into how to organize for servitization in project based contexts