Axel Johne

New service development: a review of the literature and annotated bibliography

Provides a review and ready reference to recent writings on new service development (NSD), especially for the financial services sector. Discusses the types of new service development, the purposes served by them and the processes. Refers to the key activities of NSD and measures its success. An annotated bibliography supplies a very useful guide to the new service development literature.

Innovation in medium‐sized insurance companies: how marketing adds value

Companies under threat can call upon three main types of innovation. First, market innovation – improving the mix of markets served. Second, product innovation – improving the mix of products offered. Third, process innovation – improving the mix and efficiency of internal operations. All types of innovation pose challenges, particularly to companies with little or no experience of managing change. Reports on efforts in five companies which needed to change to stay alive. Describes the types of innovation chosen by their CEOs and the means used to start the innovation process. Marketing considerations were found to be of decisive importance.

Listening to the Voice of the Market

Discusses the advantages of different styles of market listening for specific product development activities. Four types of product development activities are considered: routine product development, radical product development, extended product development, and new style product development. Listening both to the external market and to the internal market is shown to be critical to achieving success in each of these activities. Skilful listening allows a business to build effective long‐run relationships with its target markets.

Creating a project climate for successful product innovation

This paper reports the results of a study into leadership of new service development projects in consumer banking. A sample of UK businesses embracing both new entrants and mature incumbent players was studied. The results highlight considerable similarity in the project “micro‐climate” for successful projects. It is argued that a micro‐climate is created by appropriate leadership practices and styles. The paper highlights lessons in the organisation of innovation and the contributions of different types of leaders.

Insurance Product Development: Managing the Changes

Deregulation, advances in enabling technology, and aggressive competition from new suppliers, including banks, are causing more and more traditional insurance companies to revise the way in which product development is undertaken. A study of ten companies offering life insurance and ten companies offering general insurance in Britain shows that a few of them are now putting into place amended managerial systems. The marketing function is undergoing changes in responsibilities in all these companies. While most companies have key managers who have visions of how markets can be reshaped to give distinct competitive advantages, effecting such changes within existing operating constraints poses major challenges.

Effective communication with lead customers in developing new banking products

New service development (NSD) is an imperative to suppliers in todays highly competitive banking markets. Communication during the NSD process is important if the needs of customers are to be met functionally as well as economically. The results presented in this paper identify communication skills associated with successful NSD. Case research into nine UK‐based commercial banks shows that the most successful developers use special skills for communicating with customers – especially with “lead customers” – throughout the development process. Less successful developers concentrate their communication exchange on the end of the process.

One Leader is Not Enough for Major New Service Development: Results of a Consumer Banking Study

This article reports the results of a study into leadership in retail bank product development. New product development is an increasingly important business activity in many services businesses. Financial services specialists involved in this activity are required to have an understanding of project working that aims to match new product concepts to potential customer needs. In the empirical study reported here all the new product projects were aimed at developing a new area of business and were of great potential importance to the sponsoring businesses in which they were pursued. It was found that success in completing a project efficiently was associated with effective co-leadership between different levels of the organisation. Lesser project success was found when leadership was confined to a single leader. Co-leadership involved a common leadership style that was enabling, participative and highly communicative. Empowering junior colleagues to act as co-leaders confronts top management with challenges to traditional concepts of authority. Our results show how enlightened top management turns these challenges to the best advantage of their business.

Succeeding at product development involves more than avoiding failure

While product development is important in many companies, it is often approached in a constrained way. There are two main reasons for this. First, product development options are frequently viewed very narrowly; second, for personal reasons, many managers seek to avoid mistakes with new products rather than using them as a means for exploiting market potentials to the full. A schema is advanced for widening the role of product development and suggestions are made on how product development thrusts can be sharpened.

Successful Product Innovation in UK and US Firms

The managerial implications of a study of 40 leading US and UK manufacturing firms (20 UK, 20 US) are examined in which senior and middle‐level managers were interviewed face to face. In both countries, common problems confront management which wants to grow its business organically in preference to growing it by acquisition or by selling other manufacturers′ new products. Successful firms distinguish themselves by (1) balanced efforts between updating existing product lines and developing completely new products, and (2) efficient and speedy development work. It is argued that top management involvement and middle management teamwork are the key to achieving these dual objectives.

High technology product development in small firms: a challenge for marketing specialists

Abstract The paper reports on an exploratory study into the organization and management of follow-on product development in British small high technology firms. Most firms were found to lack a formal marketing function. This can cause technical strengths to be inadequately exploited. It is argued that the deficiency can be overcome by adopting a more planned approach to product development. Marketing inputs are needed for this purpose. An important operational issue is how formal a marketing monitoring system is appropriate, and what type it should be.