Stages in New Service Development

Stage 1: Business Strategy

Development or Review
Front End Planning

Stage 2: New Service Strategy

Development

• Screens against New Service Strategy (STOP)

Stage 3: Idea Generation

Stage 4: Concept Development and • Test Concept with Customers and Employees (STOP)
Evaluation

• Test for Profitability and Feasibility (STOP)

Stage 5: Business Analysis

Stage 6: Service Development and • Conduct Service Prototype Test (STOP)

Testing
Implementation

• Test Service and other Marketing Mix Elements (STOP)

Stage 7: Market Testing

Stage 8: Commercialization

Stage 9: Post-introduction Evaluation

Step 1:
Business
Strategy
Development
or Review
Stage – 1: Business
Strategy
Development or
Review (Contd.)
Stage – 2:
New Service
Strategy
Development
Stage – 2: New
Service
Strategy
Development
(Continued)
Markets
Offerings
Current customers New customers
Existing Services Share Building Market development
New Services Service Development Diversification

Ansoff Matrix adapted for Services

Stage – 3:
Idea
Generation
(External
Sources of
New Ideas)
Stage – 3:
Idea
Generation
(Internal
Sources of
New Ideas)
Stage – 4:
Service
Concept
Development
and Evaluation
Stage – 4:
Service Concept
Development
and Evaluation
(Service
Concept)
Stage – 4:
Service Concept
Development
and Evaluation
(Service
Concept -
Development)
Step 4:
Service
Concept
(Evaluation)
Stage 5:
Business
Analysis
(Developing
the Business
Case)
Stage 5:
Business
Analysis
(Developing
the Business
Case)
Stage 6: Service
Prototype
Development
and Testing
(Unique
Challenges for
Services )
Stage 6:
Service
Prototype
Development
and Testing
(Blueprinting)
Stage 7:
Market
Testing
(Unique
Challenges
for Services)
Stage 7:
Market
Testing
(Testing the
Marketing
Mix Variables)
Stage 8:
Commercialization
Stage 9:
Post-
introduction
Evaluation