Challenges in New Service Development and Value Creation through Service

Abstract

Many companies are at a crossroad where they try to’ stay competitive by creating customer value through service development. This combination produces the prerequisites that are necessary for favorable customer experiences. Our focus is not on issues directly related to the new service development process as such, which has often been the case in the service literature (Gupta and Wilemon 1990; Martin and Home 1993, Martin and Home 1995; Edvardsson et al., 1995, Edvardsson et al., 2000; John and Storey 1998; Scheuing and Johnson 1989; Kelly and Storey 2000). First we focus on challenges in the new business landscape where service competition, IT, and value creation through service, put pressure on companies and markets to develop service offerings preferredby demanding customers. Secondly, we focus on service value creation through favorable customer experiences.